The UAE's real estate market is currently witnessing new strength and enthusiasm, owing to peaked rental and capital appreciation across a few country's high-end assets. Medallion Associates, a real estate investment consulting company, made the announcement recently in the wake of news of strong property sales in the local market.

The UAE's long-term appeal stems from a variety of distinct revenue models, including a strong emphasis on innovation and technology, and swift and decisive action against COVID-19. Despite the challenges raised by the pandemic, domestic property transactions have shown a positive business trend, according to Medallion Associates.

“Global investors with a long-term investment outlook and strategy have a stable view for Dubai and the UAE,” said Masood Al Awar, CEO of Medallion Associates. The UAE's investor-friendly policies, national economic growth potentials, and benefits environment are to blame. Besides that, investors are attracted to the country's solid economic dynamics, which are fueled by major elements such as a strong employment market, a stable expanding population, good facilities, world-class education, and health care systems, and appealing tax revenue.”

We are convinced that our role in obtaining and implementing real estate investment deals using a dynamic asset investment and financing with budget summary will spur different initiatives within the emirate's real estate sector speeding its recovery and strengthening its growth,” Al Awar said.

Despite the pandemic, Dubai's real estate market reported 35,600 transactions worth Dhs 72 billion in 2020, declining from Dhs 82 billion in 2019--making the country among the most sought-after advanced and strategic investment destinations.

There has been a notable increase in the price of villas in Dubai. According to a study published by Reidin, the emirate's villa selling prices have increased since September 2020. In the fourth quarter of 2020, the villa category saw a 2.7 % rise in sales prices and a 2% increase in leases. In Abu Dhabi, however, villa selling prices rose by 2.7 % quarterly, while rent prices dropped by 0.8 %. Meanwhile, the price of a villa boosted by 2.2 %.

According to the same Reidin survey, Dubai's residential property market will generate over Dhs 56 billion in revenue in 2020, with a combined worth of available property purchases exceeding AED 34 billion. This is a 13% increase from the previous year's record. In 2020, the average transaction price in Dubai's available real estate market was Dhs 1.1 million, while the average sale price in the off-line property sector was Dhs 1.2 million. In comparison to the previous year, available property trades in Dubai and Abu Dhabi increased by 2%.

“Even in the most difficult of times, the real estate sector in Dubai and the UAE, in general, managed to draw investors from Europe and the United States as international migration trend gains momentum,” Al Awar added. Macroeconomic stability, safety, and protection; modern infrastructure; better living standards; and economic policy consistency are the four primary drivers for these investors to migrate.

The tourism industry, which is the backbone of Dubai's non-oil economy, is also pushing real estate growth. From July to November last year, nearly 1.1 million tourists visited Dubai, taking the total number of travelers to the nation to 4.9 million between January and November 2020.

Besides that, the UAE Government's latest groundbreaking decision to award citizenship to skilled outsiders is a positive development for the real estate sector in the country. The new strategy, which aims to attract more professionals who can add to the country's growth, would have a positive impact on business as more potential property investors come to market. The government's stimulus measures, to be launched in 2021, are poised to boost real estate, particularly in Dubai.

Furthermore, the total government budget for 2021 has been reported to be AED 57.1 billion, with 41% dedicated to infrastructure and transportation, 31% to social growth, and 22% to defense, justice, and security. Medallion Associates' senior executives also confirmed that these measures would certainly increase the real estate industry, taking it to a different level of performance in the regional and international markets.