UAE’s Removal from FATF Grey List: A Milestone Impacting Real Estate and Beyond
The UAE’s removal from the Financial Action Task Force (FATF) grey list is an important milestone and its overarching impact would soon be felt across all economic sectors, including real estate, say property consultants, and realty experts.
The long-awaited decision is going to allow for the free flow of capital into the country, especially from high net worth individuals (HNWIs) without excessive checks, removing restrictions and increasing transparency.
In 2024, the real estate sector is already off to a strong start with a 17 per cent year-on-year increase in property sales in January. Realty experts say they have many more reasons to be positive about the coming months.
“HNWIs have already had a huge impact on the domestic real estate market. Just last year, we’ve seen the doubling of property sales in the $10 million+ range, with over $7.6 billion worth of such high-end home transactions in Dubai last year”; Our CEO Mr. Samer Chehab shared his thoughts with Khaleej Times.
“While Dubai will remain the UAE’s primary property market, there is growing demand in Abu Dhabi where off-plan sales grew by 99% in terms of volume and 174% in terms of value. The UAE capital is attracting investor attention especially as new projects and developments emerge, delivering great value for homebuyers” he added this point in his discussion.
The realty sector is having several new projects announced by leading developers like Emaar, Sobha, and Ellington. Developers are not only ensuring sufficient supply but are also offering attractive payment plans starting from as low as 1% per month. During Ramadan and the summer, the sector might see the usual seasonal slowdowns, but the outlook remains positive for the rest of the year.
With the UAE’s population set to grow significantly over the next few years, analysts anticipate increased activity in the off-plan market in the 3-5-year period. The stabilization of interest rates and easier availability of long-term visas will be key drivers of the real estate sector’s growth in 2024.
