- Resilient economy sustained by the rising oil prices and a forecast GDP growth of 2-4%
- Continued diversification of economic sectors (transport & logistics, manufacturing, finance, tourism and construction)
- Abundant liquidity in the region
- Strategic geographic location
- Regional economic hub
- Political stability
- Attractive tax environment (no capital gains or income tax)
UAE Real Estate Market situation
- Real estate prices have dropped around 50% since its peak value in September 2008. The main drivers for this sudden drop have been:
- Global financial crisis, which triggered a psychological panic sell by investors
- Commercial banks stop financing home loans
- % of expatriates arriving to the UAE decreased substantially due to the fall in GDP growth in the UAE for 2009 and 2010
- The rental market prices have also dropped – around 40% – due to decrease in expatriates arriving to the UAE
- Relatively low valuation against other relevant international financial and economic centres
- High ‘rental yield’ in comparison with other countries
- There is a solid legal and institutional framework, which is being strengthened to increase investor confidence