This month we bring you a special focus on a continent that boasts the world’s largest free trade area, a diverse economic make-up and increasing political stability. The latest edition of Law Update focuses on Africa, a territory that continues to be an attractive business and investment destination.
Like the rest of the world, Africa is still re-building from the impact of COVID-19, however, there continues to be an optimistic view of the opportunities the continent presents. An example of the appetite for investment into Africa was captured in a report we commissioned, titled Legal Leaders in MENA. Our survey of legal leaders revealed a resounding desire to expand into new territories, with 81% naming Africa as their investment destination of choice.Read the full edition
The UAE’s real estate market is one of the most dynamic (and challenging) in the world at the moment. Over the past twenty years it has experienced the highest of highs and the toughest challenges, most recently in the form of the global pandemic that took its toll on all sectors. All that being said this journey has made the sector more mature and made it more robust. This transition has been underpinned by a consistently evolving regulatory environment that can be benchmarked against the most established and sophisticated property markets across the world.
We believe that the real estate sector in the UAE as a whole (and Dubai in particular) has risen admirably to the challenges of global political instability and COVID 19 and emerged as a highly attractive place to both live and invest.
In the UAE we see now in 2022 an investment environment transformed. Surveying the trajectory of the real estate sector from the second quarter of 2021, where events such as the Dubai Expo 2020 put a global spotlight on Dubai to the present we have seen a market improving in leaps and bounds.
The governments of the individual Emirates (and the Federal Government) have introduced multiple policy measures such as visa reforms helping develop consumer confidence among investors and end users. Other factors have had a positive impact on consumer confidence in the real estate market, including:
Whilst the macroeconomic climate and investment environment are now favorable to investors coming into the UAE real estate market there are still challenges.
By comparison with other similar markets it is still traditionally relatively rare to see the involvement in properly qualified legal professionals in transactions. Further, levels of investor due diligence still lag behind those generally accepted as standard in other markets. For most people the purchase or sale of a house is likely to be one of the most significant financial events in their entire lives.
As lawyers we are most often as not sought out to pick up the pieces of a deal gone wrong. Risks we regularly see are:
As we come to the end of quarter one 2022 we are pleased to see that the local real estate sector has continued to mature, gain international credibility and attract end-users that see longevity in their UAE based investment. As the market continues on this positive trajectory investors should keep in mind the risks outlined above and ideally align themselves with the best conveyancing service firms to ensure a smooth transaction from selecting the property to receiving keys in hand.
If you are in the process of purchasing a property and need expert advice and assistance please contact the us at email@example.com