The real estate market in Abu Dhabi, like most places across the world, suffered drastically due to the coronavirus pandemic. Potential investors and businesses were driven away from the region due to the tight travel restrictions to prevent the spread of the coronavirus in the area. The real estate sector and the economy reached an all-time low until steps were taken to attract foreign buyers to Abu Dhabi.
Kavan Choksi– the opening of borders to travelers and tourists
According to finance and business expert Kavan Choksi, the real estate sector in Abu Dhabi quickly bounced back to action thanks to the opening of borders after the Pandemic. Credible sources and reports claimed that the region recovered most of its past losses in the last year and a half when the UAE lifted COVID travel sanctions and began to accept tourists into the area.
The UAE has always been a famous region for travel for the international community
The UAE is a famous region for tourists, and it is a booming sector for travel across the world. However, after its travel restrictions were lifted, the entry of travelers was overwhelming while the rest of the globe was under lockdown, and this helped it reach a peak in its tourism revenue. Since the other places in the world had travel sanctions, the UAE was the only place that tourists could visit, and the influx of travelers to the region helped it to regain much of the losses it incurred in the last one and a half years.
Laws governing the Federal Commercial Companies
Another booster to its economy was the decision of the UAE to incorporate the Federal Commercial Companies Law, which invoked the interest of investors across the globe. In the past, foreign investors in the UAE could only own 49% of the mainland companies; however, the CCL now permits foreign investors to retain 100% ownership provided they are the primary or majority shareholder of the company.
This transformation will attract a massive inflow of sales into the real estate sector of the UAE. New executives and shareholders would require tangible assets to back mainland companies in the UAE under their ownership.
The growth of real estate in Abu Dhabi will continue
According to Kavan Choksi, he believes that the real estate sector in Abu Dhabi will continue to prosper with a majority of its new investors coming in from overseas nations. The favorable taxation breaks in UAE and novel foreign investment rules and policies will attract from across the globe investors of high net worth.
He adds that if you see the world today, there is no other region, except for UAE, that allows one to buy multiple properties fast without adhering to taxation rates that are exorbitant in nature. However, he is cautious that foreign investors should not jump at the opportunities available in this region without conducting adequate research. They should take the advice of business and financial consultants so that a bad deal that might cost them does not trap them dearly in the future.