UAE property market to grow further in 2014, thanks to Expo 2020
Steps like regulation of holiday homes and Central Bank’s new mortgage rules will continue to strengthen the real estate industry, says Omniyat’s chief
Dubai, UAE, 14 December 2013: Omniyat Group, the leading real estate development company in the UAE, says that a combination of factors will trigger higher growth for the real estate industry in Dubai during 2014. The factors include Dubai’s successful bid to host Expo 2020 and the recent real estate legislations.
The company added that the international recognition of the country across different sectors is also providing a major boost to the flourishing real estate sector, the most recent of which was the selection of Dubai as the second best sports city in the world for 2013.
“Dubai’s successful bid for hosting Expo 2020 proved to the world that the Emirate in particular and the UAE in general is a leading economic, tourism, construction and commercial hub,” said Mahdi Amjad, Omniyat's Executive Chairman and CEO. “Dubai, because of its distinguished skyscrapers, ports, hotels, exhibitions and malls, attracts hordes of tourists, investors and visitors from all over the world.It has emerged as a key global player that commands undisputed international recognition and status.”
Amjad added: “We felt the impact of the Expo 2020 win on the real estate sector from the first minute the results were announced.”
Amjad said that the introduction of mature legislations, such as regulation of the holiday homes market in Dubai and implementation of Central Bank’s new mortgage rules as of December 2013, along with the Dubai Land Department decision to double the transfer fees on property sales, will go a long way in sustaining the growth of the UAE real estate sector and introducing greater transparency.
The real estate sector has widely welcomed these steps as they seek to protect the rights of all stakeholders and they are expected to further strengthen the real estate industry in the UAE as well as protect other sectors like banking and mortgage.
Amjad said that a key positive of the new Central Bank’s mortgage rules is that it differentiates between end-users and investors, urging for further fine-tuning of mortgage rules that target overseas buyers to ease their purchases and regulate them. This would boost demand, thus motivating developers to increase supply.
Amjad said that beside the Expo 2020 bid success, other recent feathers in Dubai’s cap were the awarding of the 7th International Sports Event Management (ISEM), ranking Dubai as the second best sporting city behind London. The city was ahead of Oakland, Manchester, Dusseldorf, Johannesburg, Istanbul, Sydney and others.
Amjad concluded: “This global recognition of Dubai’s sporting prowess will be a major pillar in the further development of the real estate industry.”