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DUBAI: Property prices in Dubai have now been stable for three months at the trot – the first time this has happened in five years, Tellimer notes.
“Visa and property rules have undoubtedly moved in the right direction and could support the stabilization of prices for completed property in Dubai and Abu Dhabi,” the research firm said on Tuesday in a note to clients.
Many positive indicators have emerged from the UAE real estate sector in recent days and not just in Dubai.
It comes as the country accelerates its own growth targets and introduces trade reforms aimed at making it more attractive to investors and residents.
As ambitious as ever, the UAE’s Ministry of Economics has released a target of doubling total GDP over the next decade. For the UAE to grow by 7 to 8 percent per year on average, all the growth cylinders should kick in: oil production and prices, tourism, investment and construction, population and productivity, ”Tellimer said.
Real estate, long an engine of growth in the UAE, was hit hard by the collapse in oil prices in 2014 and has been in the doldrums for most of the intervening period.
Now, signs of recovery are appearing, especially in luxury property sales in Dubai.
Sales of high-end real estate in Dubai nearly doubled in March to 84 units sold – worth around 1.7 billion dirhams ($ 462.8 million) – from the previous month, according to the real estate intelligence company Property Monitor.
Positive real estate data also emerged from the capital with around 3,850 real estate deals concluded in Abu Dhabi in the first quarter for an amount of 11.5 million dirhams ($ 3.13 billion).
A continued recovery of the tourism sector is an important factor both for the health of the real estate sector and for the economy in general.
“The main driver of short-term non-oil growth is tourism and although the UAE has done everything to keep the sector alive, in terms of smart social distancing rules and vaccination program, it cannot control the most important factor., international travel restrictions, ”Tellimer said.