Dubai holds a strategic location on the map, and the rise of proptech (property technology) in its real estate market has been attracting foreign investors from across the world.
In the first quarter of 2018, Dubai witnessed a staggering AED 111 billion real estate transactions.[1] Throughout the year, the top 10 nationalities that in Dubai real estate included British, Pakistani, Chinese, Egyptian, Jordanian, French, and Indian nationalities, reflecting the country’s status as an attractive investment hub.[2]
Dubai takes a smart approach
Because Dubai aims to be the world’s smartest city by 2021, more government services are becoming ‘smart’ through advanced applications and services, positively impacting the real estate sector.
Government initiatives have been encouraging proptech. The Dubai Land Department has also announced its efforts in contributing to the Dubai 10X initiative, which aims to deliver services through a customer-focused approach. As such, property transactions are expected to become almost paperless, simpler and easier, decreasing costs for developers and buyers. According to a research report by HSBC, 67% of UAE real estate buyers are now searching online for available properties.[3]
Proptech has also gathered attraction in the city’s private sector, as real estate developers have already begun showcasing their projects through 3D-model technology. Through this technology, investors can see the view on different floors, as well as take a visual tour of the community’s facility and service offerings. This kind of technology allows investors to take a look into the future before development is even complete, permitting them to have a more informed investment decision.
Smart services and software can automate all business processes for the real estate sector by providing a fully-integrated cycle for operations, finance, and facility management. Maisonette, a real estate software that boasts these features, also offers a built-in customer relationship management (CRM) system, a document management system and smart marketing tools.
More reasons to invest in Dubai real estate
Flexible payment plans and Expo 2020
Real estate developers and banks are offering flexible payment plans, which have been attracting more investors into the Dubai real estate market. As the start of Dubai Expo 2020 comes closer, it brings no doubt that now is an ideal time to buy property in Dubai.
In preparation for the world-scale event, infrastructure spending has also increased in the city. Likewise, investors can expect state-of-the-art infrastructure around their new property.
10-year residency and 100% foreign ownership
The UAE government earlier in 2018 launched 10-year residency visas for expat investors. The government also announced 100% foreign ownership of companies, attracting more investors into the country. Consequently, purchasing property in Dubai has become a more lucrative choice, as foreign residents can visualize a long-term future in Dubai, rather than a temporary one.
All in all, smart services in the real estate sector and the city’s investment in infrastructure are keeping Dubai at the forefront of real estate globally.
Sources:
[2] Gulf News
[3] HSCB
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