UAE real estate will show a sudden rise in global stock
The Global stocks have seen a decline of 25%, over 50% of businesses globally, which means the ideal investments are assets, especially in real estate assets.
The reasons why we should be bullish on real estate.
#StayAtHome and #WorkFromHome initiatives.
People after the epidemic will direct their investment towards solid assets. Especially the villas and the apartments with gardens, in fear of they face such pandemic recently.
So, they need to get a place would be with a good spirt for working and studying.
The economic stimulus package has a positive impact on Emirates real estate
The economic stimulus package recently approved by the Central Bank of the United Arab Emirates will contribute significantly to supporting the real estate sector in the country.
In this context, the Central Bank pledged to allocate 256 billion dirhams to stimulate the economy. It also mitigates the economic impact of the repercussions of the outbreak of the coronavirus emerging.
With regard to financing, banks allowed to increase their exposure to the real estate sector from 20% to 30%. It also required them to maintain more capital if the exposure exceeds the 20% barrier. These facilities will provide additional liquidity to both developers and investors.
The future of real estate in the UAE between Expo postponement
Since the Executive Committee of the International Bureau of Exhibitions unanimously agreed to postpone the Expo 2020 Dubai to the period from October 1, 2021, to March 31, 2022.
Expo 2020 has been one of the main driving factors behind the growth of the real estate sector and the non-oil economy in the United Arab Emirates since Dubai won the honour to host the exhibition in November 2013.
This is the effect of Corona on real estate in the Emirates
Decreases in rents, wage rates, and real estate value prices.
The housing units sector declined during the first quarter of the year in the country after more than 12400 units entered the market and demand declined under the Corona pandemic conditions.
The performance of the market will depend on
- The coming months to a large extent on the extent of things returning to a normal course.
- The government initiatives took to boost the real estate market in the UAE.