Government reforms have resulted in a positive outlook for the UAE real estate market in 2022

In terms of transaction volumes, Dubai reported a total of 57,043 for 2021, representing a 73.6 percent increase on 2020 and a 51.6 percent increase on 2019.

Meanwhile, Abu Dhabi, the nation’s capital, similarly registered Dh16.2 billion worth of transactions in the third quarter, with property prices over the course of the year increasing by 1.6 percent.

The positive momentum witnessed in 2021 is an encouraging sign of things to come this 2022 for the UAE real estate sector – much of which has been driven by the UAE government’s handling of the Covid-19 pandemic, combined with the series of reforms it has introduced to support economic growth and supported further still by Expo 2020.

In the case of Covid-19, the UAE is a shining example of best practices in handling a public health crisis. The country was commended worldwide on the proactive approach adopted by its leadership in managing the pandemic and is now ranked in the top ten countries worldwide by the Global Response to Infectious Diseases Index.

Thanks to pre-existing crisis preparedness infrastructure, the application of novel and advanced technologies to manage and limit the spread of the disease, the ultra-fast roll-out of Covid-19 vaccinations and one of the highest testing rates in the world, the UAE has been consistently recognised as a world leader in handling Covid-19.

Driving citizen and investor confidence, many have flocked to the country from around the world thanks to its high levels of safety, contributing to positive real estate market developments.

The nation has further boosted the number of expatriates and foreign investors flocking to the country thanks to its swathe of recent visa and business reforms introduce over the past year.

To create a sustainable economy in the long-term, which requires both foreign investments and skilled labor, the government has introduced visas for retirees, digital nomads, entrepreneurs and other skilled and talented individuals to encourage them to settle in the UAE long term. Moreover, the government has also relaxed restrictions on its commercial companies’ law, meaning that onshore companies no longer need an Emirati shareholder.

These reforms combined have attracted many professional working people from across the world looking to invest in real estate, whether for work or to make the country their long-term home. Expatriates are increasing their tenure in the UAE, staying on average three times longer in Dubai than in the past, driving greater demand for real estate investment.

Moreover, Expo 2020 in Dubai has further bolstered the number of people travelling to the city, boosting real estate transactions in Dubai by a further 15-30 percent, as short-term visitors become long-term visitors.

Together these trends are positive indicators for the performance of the UAE’s real estate market over the next year. But looking beyond the year ahead, we expect robust demand to continue well into the future as a growing number of investors look to invest in the cities of the future.

With the UAE government committed to developing smart cities that ensure energy efficiency, cost savings and safety for smart urban living, projects such as Abu Dhabi’s Zayed Smart City Project are likely to further boost interest in the country’s real estate market. We expect the interest in smart cities to extend well beyond 2022, making UAE real estate one to watch well into the future.

Dounia Fadi, Chief Operating Officer of Berkshire Hathaway HomeServices Gulf Properties.