Dubai has been a long-known real estate hotspot with its luxurious offerings and attractive investment opportunities. There has been tremendous growth and development in the Dubai property market over the years and this has been shaped by regulations and trends. The following are some of the key regulations and current trends that have an influence on the Dubai property market, which will be analyzed in this blog post.
Regulations Governing Foreign Ownership:
One of the main factors behind the growing Dubai property market is that it allows foreigners to own properties according to state laws. In 2002, expatriates were given permission by a royal decree from the government to possess freehold property within particular zones. This led to opening up of markets for international investors thus increasing demand for properties there.
Introduction of Mortgage Caps:
To avoid another housing bubble and maintain consistency in real estate growth, mortgage caps were introduced by Dubai government in 2013. These caps restrict banks on how much money they can lend out to house buyers thus countering speculators’ interest as well as price hikes.
Rise of Off-Plan Sales:
One of emerging trend in Dubai property market is off-plan sales increasing popularity rates. Some developers are providing good payment plans as well as incentives for people buying before construction finishes on their projects. As a result, off plan sales have surged with stakeholders seeing high return potential once project completion takes place.
Shift Towards Affordable Housing:
Dubai’s population growth coupled with need for middle-income housing options has seen rise in demand for affordable houses over recent years .The government has embarked on several initiatives aimed at encouraging developers build affordable units such as incentives.
Impact of Expo 2020:
The forthcoming Expo 2020 event is expected to significantly affect the real estate sector (Arora). It will attract millions of visitors leading to increased demand for accommodations as well residential properties (Clark). This has seen developers take advantage of the situation by introducing new projects and marketing their properties to prospective investors.
the Dubai property market remains a dynamic and attractive place for investment as it is influenced by regulations and trends. Knowing what is currently happening in the real estate market will allow an investor to make wise decisions which he can take advantage of in terms of Dubai real estate sector.
