Uae real estate market is favourable for investments despite some risks

HOMEAPP & DAVIMA RESEARCH HOUSE

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UAE REAL ESTATE MARKET IS FAVOURABLE FOR INVESTMENTS DESPITE SOME RISKS

In the last two years, real estate in the UAE has shown a very rapid increase in value, for example, the annual increase in the average price of apartments has exceeded 35%. There are questions about the continuation of this growth and whether this is a harbinger of the so-called "bubble" in the real estate market. Any investment decision is a balance of risk and return, which is individual for each investor. We identified the key opportunities and risks in the UAE market which should be considered when making investment decisions. In our view this rusk/return balance is currently favourable for investing given sustainable growth of UAE economy and clear positive track record of government social and economic policies. At the same time investment decisions should be made based on careful selection of individual properties to avoid potential losses.

Source: Davima Real Estate LLC & Homeapp research team