The upcoming Expo 2020, low-interest rates, sufficient bank liquidity and easy immigration norms further increase real estate demand, says Pantheon Group Founder and Chairman
Dubai, United Arab Emirates, 13 October 2019-(AETOSWire)- Industry experts believe that increasing affordability and high rental returns have been wooing more local and foreign investors to the UAE property market for quite some time.
“Dubai and Abu Dhabi offer rental yields more than double of what is offered by established countries across the world,” Kalpesh Kinariwala, the Founder and Chairman of Pantheon Group, pointed out.
According to a report by Moody's Investors Service, the UAE residential demand is expected to be supported by attractive average rental yields ranging between 6 and 7 per cent in the coming months.
Reports also suggest that rental returns in the UAE are more than twice in comparison to rates offered in the far Asian markets such as Thailand, Malaysia and other neighboring markets, which currently stand at around two to three per cent. “In Dubai, the rental returns are up to 7 per cent, which is quite high," said Kinariwala, the Founder and Chairman of Pantheon Group, which is a well-known name in the affordable luxury segment in Dubai’s real estate market since 2016.
Rising affordability is also increasing property demand in the UAE market. The affordable segment, for example, is witnessing an increase in demand with a majority of the expat working population earning less than Dh10, 000. This sector is constantly looking for renting affordable units because they simply cannot afford to buy a property.
The company completed and handed over its first affordable luxury project Pantheon Boulevard, valuing at AED 150 million, in Jumeirah Village Circle. Its second project, Pantheon Elysee, is underway at District 13, Jumeirah Village Circle. This AED 180 million project will comprise of 268 residential and commercial units. It is likely to be delivered by October 2020, just before the beginning of the World Expo 2020.
“Real estate in the UAE is also witnessing a surge in demand on the back of the upcoming Expo 2020, low-interest regime, sufficient liquidity with banks and the increasingly relaxed immigration regulations,” said Kinariwala.
The rising UAE population and economic growth are giving a considerable push to the market. “The demand has been increasing since December 2018 and unit sales are growing rapidly,” he said.
Expo 2020 is also expected to have a positive impact on the real estate sector as the event is set to welcome over 25 million visitors, which is expected to boost the economy by over 3.5 per cent.
“The upcoming Expo 2020 will give a chance to tens of millions of its visitors to have a first-hand experience of the UAE’s strategic location, international accessibility, and robust legal system, which are the key elements to be considered before investing in real estate," said Kinariwala. Pantheon Group was recognized as the “Best Affordable Luxury Property” during the Arabian Business Real Estate Awards 2019.
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