Author: Kalpesh Kinariwala – AETOSWire
The Dubai Real Estate market is likely to be impacted by UK’s uncertainty to stay or exit the European Union (EU).
The ambiguity of the exit plan and the rejection by the British Parliament of the idea of a Brexit without a deal could pose a serious risk to the British economy in general and would also increase the risk levels on all current and potential Real Estate investments in UK. This improbability has also affected UK’s position as a top real estate destination with real estate prices gradually starting to decline.
Global investors have long been considering London and some other parts of UK as a “Safe Haven” for real estate investment, and this decision could affect investors globally and in the Gulf looking to possibly invest in hotels, malls, private places and luxury hotels.
The current situation has also impacted real estate prices which are facing an all time low. The annual growth of UK house prices in January was at its slowest level for nearly six years, while in February, it recorded a slow rise of only 0.4 percent. Additionally, demand for homes declined again in the month of March- this being the eight straight month.
This impact to the UK’s real estate scene is rapidly turning investors to Dubai’s market which is experience an increase in the number of inquiries of investment institutions on investment opportunities in real estate, especially in luxury homes and villas.
With Asian investors yet again vying the Dubai residential investment landscape and laws facilitating the foreign ownership of businesses outside the free zones, global investors are increasingly been drawn to the market in the Gulf. Additionally, with relatively low interest rates, and the increase of economic activity associated with Expo 2020, Dubai is expected to draw approximately 25 million visitors from across the globe. Foreign investors owning a real estate investment value ranging between AED 5 to 10 million ($1.36 million to $2.72 million) will also now be eligible for a long-stay visa.
With relatively exciting opportunities awaiting investors in the Dubai Real Estate market, the uncertainty revolving around UK’s exit from the EU could be a situation property agents in Dubai should consider taking advantage of.