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Mazaya Monthly Real Estate Report -
Week 1 - August 2016
On the other hand, we cannot conceive
the UAE market conditions without
Expo projects, which would be
subject to several changes, and acute
corrections that will have long-term
impact. There is no doubt that all the
economic sectors will avail themselves
of hosting the event, not only the real
estate and construction sector. The
real estate sector is gearing up to host
more than 25 million visitors over six
months. Thanks to the strong influence
of Expo projects, the real estate market
has remained resilient and succeeded
in overcoming the sharp declines of
prices. The real estate market has been
given the option of continuation by
launching mega real estate projects.
It is worth mentioning that the pace of
project activity at the moment indicates
a good success rate in overcoming
the oil price crisis and the ability of
the market to recover, backed by the
constant governmental support for
the sector. This is in addition to the
investments in infrastructure and
the launch of more mega real estate
projects, in addition to the continuing
development of the laws and
legislations, which are related to the real
estate and non-real estate investments.
The updated legal framework is meant
to respond to all the changes and
requirements of the market and protect
the rights of shareholders, developers,
buyers and owners. These efforts
have contributed and will contribute
to maintaining the pace of activity at
acceptable limits, under all scenarios
in local and international markets.
Al Mazaya's report emphasises that
the success of Expo projects and other
projects is part of an ambitious strategy
carried out by the Emirate of Dubai
for a long time as the Emirate has not
suspended its real estate projects and
maintained a high pace of construction.
Stimulus policies have also continued to
attract regional and global investments.
Despite the slump in demand for various
real estate products, particularly by
foreign buyers, the pace of launching
real estate projects of all volumes and
for all targeted segments has remained
unchanged until now. The resilient real
estate market in the Emirate has been
able to survive despite the decline in
both the government spending and the
foreign investments, particularly Russian
investment. On the contrary, investments
from GCC countries remained at high
levels and reported a steady growth.
Al Mazaya's report also added that the
projects already underway are gaining
more importance, despite the decline in
both the financial and economic activity
and the foreign investment seeking
investments abroad. Nevertheless, we
can say that the direct and indirect Expo
projects are protecting the UAE real estate
market from recession and substantial
losses, thus granting other sectors an
acceptable pace of activity that help them
survive and persist until the financial and
economic pressures are over. It would
be no exaggeration to say that the Expo
projects have contributed to maintaining
the old investments by maintaining their
values and keeping the expectations
of inves t ors positive for the future.