Interview: Majed Odeh
How would you evaluate real estate investment opportunities, and which segments are likely to experience high growth in the coming years?
MAJED ODEH: The real estate market in the UAE, and specifically in Abu Dhabi, has continued to expand rapidly, with demand experiencing significant growth. This increase is primarily attributable to the country’s strategic vision of attracting a diverse array of investors and workers from around the globe, fostering an environment of demand as the government leverages tourism to turn temporary visitors into permanent residents. In this sense, the amount of people establishing businesses or coming to work in the country has ensured the sustained growth of the domestic real estate market. The current economic stability and social safety on offer compared to many other markets, as well as the attractiveness of the overall surroundings, has transformed the UAE into an appealing choice for individuals looking for a place to live outside of their home country.
As a developer, it is crucial to cater to a broad spectrum of customer preferences, ranging from standard apartments to high-end villas, and everything in between. The diverse demand is reflected in the launch of mixed-use projects like Al Reem Island, which is a testament to the changing market dynamics. Further enhancing the attractiveness of the real estate market in the UAE is the introduction of incentives such as the Golden Visa, which can be tied to purchases of high-end real estate.
To what extent are local real estate developers adapting to global trends in environmental, social and governance (ESG) standards?
ODEH: In line with global trends, developers are aligning their strategies with ESG standards. From a broader perspective, this transformation is not merely about adhering to regulations or guidelines, but about real estate companies reshaping their approach to development. In this sense, the sector is starting to see sustainable development as a core principle of operations. Demand for sustainable and eco-friendly properties is also increasing.
Indeed, consumers are seeking properties that protect the environment, reduce carbon emissions and contribute to healthier living conditions. This is particularly noticeable among younger buyers, who tend to be more eco-conscious and are willing to spend more for sustainable living. Developers are therefore investing in green technologies, sourcing environmentally friendly materials and adopting energy-efficient designs. They are also focusing on improving the quality of life within their developments by integrating community spaces, promoting walkability and improving access to amenities. Moreover, real estate developers are also addressing social standards by focusing on equitable development.
Which international markets offer opportunities to boost trade relations and increase foreign direct investment in Abu Dhabi?
ODEH: Europe, in particular, has emerged as a significant source of investment, though it is challenging to discern whether this influx is a result of international instability or the appeal of investment opportunities in the UAE. This trend is not confined to real estate alone. Indeed, it is reflected in a multitude of sectors, signifying the broad appeal of the country’s investment environment.
From technology to health care, education and energy, each industry seems to be benefiting from increased interest. The resulting surge of investment from various nationalities suggests a trend towards growth that transcends geographical boundaries. Advanced infrastructure, a transparent regulatory environment, political stability and promising economic growth are all factors that contribute to making the UAE an attractive investment destination.
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