Property News Last Week
Dubai has issued a Royal Decree offering incentives for property funds committing sizeable funds into the local commercial real estate sector. The Decree – issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai – requires these funds to invest Dh50 million or above on the properties to qualify for the incentives.
Dubai’s new law to incentivize property investment funds is expected to attract more foreign capital to the industry, but it is too early to tell how it will benefit retail property investors, experts have said. The law will provide further transparency to institutional investors.
June 2022 broke a 13-year record, with over 41 per cent growth vis-à-vis sales volume in comparison to 2021. The first half of 2022 has concluded on a strong note for the Dubai property market as it recorded 43.2k transactions worth AED 115 billion. This marks a year-on-year growth of nearly 60 per cent in terms of sales volume and 87.8 per cent in terms of sales value, according to the Zoom Property Insights.
Nitin Bhatnagar, co-founder and president of Ellington Properties, a leading design-led boutique property developer, explains the transition of the company into a fully digital organization. Over the past few years, having a digital mark has become a crucial and non-dismissible aspect for any business’ success worldwide. Moreover, the pandemic has played an important part in accelerating the digitalization of businesses to keep the market windmill turning.
The United Arab Emirates’ economy grew by an estimated 8.2% in the first quarter, buoyed by higher oil production, the central bank said on Wednesday. Real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said. There was a high probability of stronger growth due to higher oil production and a government pledge to double the manufacturing sector’s size by 2031.