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Dubai attracts new institutionalized real estate investment funds (REITs). What is it and what for?

Dubai attracts new institutionalized real estate investment funds (REITs). What is it and what for?

Dubai’s authorities are launching new rules to motivate more REITs to invest in the Dubai real estate market.

Time is crucial: the vast majority of foreign institutional investors from the EU are considering diversifying their portfolios and moving to Dubai. In light of the instability in the global financial system, real estate as an asset attracts increased attention from individual and institutional investors, as they consider it less risky than many other investments. What does this mean for ordinary investors?

Firstly, REITs conclude plenty of transactions, which contributes to the growth of the Dubai economy. REITs make lucrative deals worth hundreds of millions. They do not speculate, but buy for rent and focus on medium- and long-term investments, which stabilizes the market and balances supply and demand in the Dubai real estate sector.

In addition, REITs make it easier for local and overseas investors to enter the investment environment. They also motivate investors and landlords with large real estate portfolios to continue investing in Dubai property.

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