Rising investment, population growth and increased tourism are forecast to drive demand in the United Arab Emirates real estate market in the coming years.
To cater to this growing demand, global property portal Lamudi today announced its launch in the UAE. The move means Lamudi is now available in four countries across the Middle East: the UAE, Saudi Arabia, Jordan and Qatar.
Lamudi’s launch in the Emirate comes as the UAE’s property sector reaches a critical junction, with the market stabilizing after years of high growth. Figures released this week by the Dubai Land Department show investment in the city’s real estate market is soaring, with the total sum of investment exceeding AED53 billion (US$831 million) in the first half of 2015.
Industry experts are predicting a real estate boom across Gulf Cooperation Council (GCC) countries over the coming years, driven by high population growth, an influx of foreign workers and increased tourism in the region. A report released by Alpen Capital this week revealed that the population of GCC states is growing at an annual rate of 5.2 percent and is expected to hit 57 million by 2018.
Meanwhile, research from Deloitte shows that those aged between 20 and 35 account for about half of Dubai’s population, with this age group representing an important driver of demand for residential property. At the same time, higher income earners within this age bracket are driving demand within the retail property sector.
Lamudi Global’s Co-founder and Managing Director, Kian Moini, said: “Lamudi is launching in the UAE at a crucial time for real estate in the region, as the Emirate’s property market is reaching a stage of maturity.
During this time, we expect to see an increasing number of house-hunters switch online to search for property. This is even more true given the average age of property-seekers in the UAE, with the bulk being under 35. People in this younger age bracket are often early adopters of technology and more likely to start their property search online.”
In Dubai, residential prices and rents stalled in the first two quarters of 2015, with real estate consultancy firm Knight Frank predicting prices could soften by up to 10 percent this year. Over the long term, many commentators have attributed this to signs that property market growth has reached a more sustainable level.
Launched in 2013, Lamudi is a global real estate marketplace for the emerging markets. The platform provides house-hunters with the best resources to find their dream home, while agents, brokers and developers receive high-level support to market their properties online.
According to Dubai Land Department figures, about 19,848 investors from 142 countries invested in the city’s real estate sector during the first half of 2014. While UAE nationals top the list with AED 11.5 billion (US$3.13 billion) worth of Dubai property market transactions, Indians, Britons and Pakistanis remain the top foreign investors.
“Dubai’s property market continues to attract high interest from buyers from all over the world, which shows the confidence investors have in the sector’s future. Lamudi, as a global property portal operating in more than 30 countries, is in the perfect position to cater to this demand from international buyers,” Moini said.