A global pandemic, contentious politics and natural disasters — what haven’t we experienced this past year?
It seems like the whole world is focused on what the second half of 2021 will bring. But when it comes to real estate development, Dubai is possibly at the top of the heap, Opines Hirav Shah, Eminent Real Estate Strategist, Adviser and Astrologer .
Real Estate Scenario in 2021
Global GDP growth in 2021 is forecast to be the fastest in 40 years, according to Oxford Economics, albeit only enough to return global GDP to pre-crisis levels.
Many advanced economies have taken a ‘whatever it takes’ approach to supporting economies, with ultra-low interest rates and quantitative easing programmes. These low interest rates will support real estate investment through 2021.
Unlike during the global financial crisis, banks today are less geared, while non-bank lenders have expanded significantly. This provides borrowers with greater options in the recovery.
Meanwhile, travel restrictions and broader economic uncertainty have led to a fall in deal volumes.
In spite of near-term uncertainty, the long-term appeal of real estate has held for investors, and the number of funds targeting it have continued to rise. Funds are now targeting more than $300 billion of investments. This suggests investor momentum moving into the second half of 2021.
Dubai Real Estate In 2021
Generally speaking, Dubai’s real estate market has been in a downtrend for several years, and the coronavirus crisis has made matters worse. This has also influenced the rental yield. House prices in Dubai are down over 40% from their peak, and this means a massive opportunity for savvy investors. Family offices and institutional investors are still not convinced that this is the time to buy, but they are indeed very interested.
But, there is a HOPE & a Huge Real Estate Upward Trend is all set to happen…
Iconic Real Estate Guru Hirav Shah mentions the factors below.
1.Middle East Peace Agreement
There is a new nation in town for the first time, and they have already bagged some bargains. Until recently, Israelis couldn’t enter the UAE due to the conflict over Palestinian land. The Middle East peace agreement orchestrated by the Trump Administration has put the relationship between the UAE and Israel on the normalization path.
Now, in Dubai, there is a flood of new tourists from Israel, and many of them are actively looking for the right business opportunities, especially in the real estate sector.
The Israeli government and the United Arab Emirates (UAE) are happy that the new peace agreement has helped both regions, and it has enhanced their trade. Both countries have established themselves as a pioneer in their area of expertise—Israel as a tech hub, and the UAE as the best infrastructure developer and owner of the tallest building in the world.
Trade potential by 2021 end, is estimated to reach billions of dollars and is expected to grow significantly in the near future.It is imperative to keep in mind that this is only the beginning of new relations, and governments are trying to develop a new relationship that isn’t going to be a walk in a park. The real estate market has taken a nosedive, and new buyers from Israel have been able to find bargains.
2.No Property Tax
There is no need to pay property tax in Dubai. You have to buy the property and pay the registration fee to the Dubai land department.
3. Stable Economy
From the early stages of development itself, the Dubai Economy is moving in a steady state. Even though there had been terrible times, they resolved every issue within a small period of time and made the economy hearty. So even if you invest in real estate, you may not end up with a loss.
4. Low Acquisition Costs
Compared with many other real estate capitals globally, Dubai real estate has the lowest acquisition cost. This is the biggest profit for investing in the real estate business that cannot be ignored.
When compared with many other industrialized and developed nations, it is a proven fact that the crime rate in Dubai is very low. This has also been an important factor to trigger the real estate sector in Dubai.
As you know, people are always interested in buying properties in the fastest growing economy rather than in the non-developed areas and Dubai is one of the smartest regions in the world with the most advanced innovations. This makes Dubai a center of attraction and it is being visited by millions of people each year. This is a great advantage for the real estate business in Dubai.
7. Growing Population
Nowadays, people are always in search of better job opportunities and places to grow their business. Since Dubai is the best choice, they migrate to this advanced city to fulfil their dreams.
Many small, as well as large companies, are choosing Dubai as their business headquarters. For these purposes, they will need space for accommodation, to set up their office and many more. This in turn helps in the growth of real estate and is beneficial for the investors.
Hirav Shah’s Advice
1.Clear Objective – Know your objective before investing in a property and establish your goals for any property you’re considering. Committing to a property without a clear objective and “winging it” after you commit to it typically ends up costing a lot of money and time, be it Dubai or any other place in the world.
2.Strategy For Developers – As demand is picking up, developers need to ensure they keep pace with the changing requirements from investors.
Developers should keep in mind that buyers are looking for ready units with post-handover payment plans so this should be part of any future project launches.
In terms of ROI to differentiate their project, developers must also offer a compelling proposition, based on build quality, return (mid to long term) and potential capital appreciation.
3.Customer Buying Experience – It’s wise to create a unique customer buying experience through technology (virtual walkthroughs, 3D virtual tours, contactless payments, etc). This is particularly pertinent today, amidst pandemic second wave.
If you are trying to find your dream home or trying to do your dream investment, Real Estate Guru and Astro-Strategist, Hirav Shah is the best Go-To-Man for any strategic advice & direction. Hirav has helped transform many lives and businesses, yours can transform too.