Dubai’s popularity for being one of the world’s hot property markets is gradually pricing out purchasers, leading to picking up of interest in REITs Dubai’s position into one of the world’s hot property markets is gradually pricing out purchasers, leading to a rebirth of interest in real estate investment trusts and pushing many to resort to fractional ownership applications that need as little as $136 in payments.
Purchasing real estate is still the easier step to enter the market, but for many people 17 straight quarters of price increase have made that choice unattainable. From a 2020 low, Emaar Properties PJSC has risen about five-fold, while office landlord Tecom Group has up around 18%. Of the few companies listed on Dubai's exchange,
Other companies like Stake are starting to take hold. Investors may purchase portions of homes for as little as 500 dirhams ($136) on its internet platform; the business recently attracted money from Mubadala Investment Co. in Abu Dhabi.
Attractive substitutes also include real estate investment trusts that expose investors to a pool of income-giving properties without having to personally own them. The most recent drive to build such buildings comes directly from the upper position of local administration.
Under REIT arrangements, Dubai Holding, an investment corporation run by the city's ruler, is mulling proposals to market its residential and retail property holdings as early as next year according to a news. From shopping centres to residential neighbourhoods, under one of the big and very important government-linked developers, it will provide investors access to popular properties.
A chief executive officer of a big group, which manages Emirates REIT, said that "REITs give the market better accessibility since investors can access real estate with comparatively small amounts of capital." The company is among three REIT managers in Dubai.
According to the managing director of Al Mal Capital REIT, REITs provide investors liquidity of publicly listed stocks in addition to reduced entrance expenses. They also let purchasers benefit from expert management, he said.
Still, any chance of recovery for REITS in Dubai would take place against a world market in despair. A private equity behemoth had to face real estate problems that affected its second-quarter results. The company had to deal with increasing redemptions in the middle of the year.
Locally there have also been difficulties. The Dubai Financial Services Authority investigated Emirates REIT four years ago for its corporate working, and after some period the government body penalised the management. The car market as well as ENBD REIT have both shown losses in recent years because they failed to match the rise in Dubai property prices.
But this time there are important differences. Long-term visas for property investors and loosened regulations on foreign ownership among United Arab Emirates' changes have produced a more welcoming field for international capital, therefore allowing REITs to profit from a larger hub of investors.
A number of new REITs would support the government's efforts to grow domestic capital markets, a major objective for the emirate whose stock market has been among the very active in the world and has lately hosted a boat of listings.
Supported by good sponsors who will introduce good working procedures, The regional co-head of investment banking HSBC Holdings Plc, sees a chance for REITs to flourish in the United Arab Emirates.
Apart from REITS, other new technology-related companies have increased recently to highlight the rising interest in Dubai's property sector. Founded by a former Goldman Sachs Group Inc. banker, an online property management company Keyper received $34 million earlier this year. Since its 2021 debut, Stake which is a Dubai-based company has raised $27 million and bought over 300 properties valued 540 million dirhams.
Some companies are working in the field of user experience of buying properties where big companies are interested in giving an amazon-like platform where people who want to buy properties in a few minutes and can see all related documents and transaction details in a single app.
As we all expected, the last quarter of 2024 is going very much fantastic for the property market of Dubai and seeing this boom, the people are finding every chance to grab this opportunity to get a better offer in buying luxurious properties. The government is also helping the builders and buyers both to have a smooth and transparent environment with its friendly rules.
Dubai is one of the few parts in the Middle East whose every location is beautifully planned and well connected to other popular addresses of the city. There is huge marketing going on for the new properties that are priced well and provide good offers. The growth of the property market in Dubai is also attracting people from other countries to invest here.
