Heritage real estate in the Emirates have a special character, carrying within them the scent of the past represented by distinctive urban designs. Although it is not significantly different from current real estate, it is unique with structural and design specifications that are slightly different from the nature of modern building designs.
- The heritage residential and commercial real estate projects are distributed between Dubai, Abu Dhabi, Al Ain, and other Emirati cities. It is particularly popular with lovers of archaeological sites and popular markets that express the UAE’s heritage, culture, and ancient history.
Through our next article, we will review the most important information about investing in heritage properties in the Emirates and its role in attracting investors from various countries. We will also shed light on the most prominent factors that support investment in heritage projects, as well as the obstacles and challenges that hinder the path of their development and investment. Let’s continue together.
Factors affecting investment in heritage real estate in the Emirates
Investment in heritage real estate in the UAE is affected by the following influential factors:
Economic and political stability
The United Arab Emirates is witnessing clear and continuing political and economic stability. This reflects positively on the rates of real estate investment in the country of all types. Including the increase in investment opportunities for heritage properties in specific areas, whether for sale or rent.
The strength of supply and demand in the heritage real estate market
Supply and demand are key factors in determining the investment mechanism in heritage real estate. Especially when there are increasing demands on the market for heritage real estate projects, and the increase in real estate sales and rentals. This would encourage investors to start their investment work and meet all customer requests, including buyers and tenants.
Heritage real estate website
The strategic location of the property is considered one of the most important factors that attracts the investor to work and achieve high investment returns in the long term. The livelier and more touristic the site is, the greater the demand for it from investors. Especially when it is close to service and entertainment facilities. It is distinguished by its comprehensive and integrated infrastructure.
Competition in the heritage real estate market
Strong competition in the UAE real estate market for heritage real estate plays a major role in attracting more investors. And start obtaining distinctive investment offers that achieve high profits in terms of real estate designated for sale or rent.
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Benefits of investing in heritage real estate in the UAE
Investing in heritage real estate in the Emirates brings many positive benefits and advantages, which are as follows:
- Investing in the UAE real estate market is exempt from many taxes, especially income tax.
- Obtaining the most prominent investment opportunities in a stable and constantly growing economic environment.
- Stimulating tourism and increasing the number of expatriates wishing to visit heritage places and spend their stay in one of the properties designated for rent.
- Obtaining high investment returns, whether through real estate sales or rentals.
- Investing in the best real estate projects with distinctive infrastructure and exceptional locations, which constantly attract large numbers of clients, including buyers and tenants.
The most prominent challenges of investing in heritage real estate in the Emirates
Investing in heritage real estate in the Emirates faces several main challenges, which are as follows:
- The economic downturn that emerged during the Covid-19 pandemic and the recession that affected the UAE real estate market in general, which led to a decrease in demand for purchasing and renting real estate.
- The surplus of real estate on offer, and low real estate selling prices and rental prices, especially in the winter period.
- Rental real estate returns fluctuation between high and low as a result of being affected by available offers and demand for them.
- The existence of problems in financing investment projects by foreign investors, especially after the repercussions of the global financial crisis.
Examples of successful heritage real estate investment in the Emirates
We have selected for you the most important examples of the success of investing in heritage properties in the Emirates, as follows:
Investment in Dubai Culture Village real estate in Dubai
Dubai Culture Village is located in Al Jaddaf area along the Dubai Creek, and its area is approximately 3.7 million square feet. It includes a distinctive group of buildings of an archaeological and heritage nature, including museums, exhibitions, and places for literary forums. There are also many residential properties designated for investment at varying prices, whether for sale or rent. There are various types of residential apartments, most notably studio apartments that are most in demand for rent. Especially by tourists coming with the intention of visiting the village and its prominent tourist attractions.
Heritage real estate investment in in Al Badia Hillside Village, UAE
Al Badia Hillside Village is located in Al Badia area in the middle of Dubai Festival in the Emirate of Dubai. It is a distinctive place, containing the most important heritage buildings whose architectural style mimics ancient historical castles and palaces. It is also distinguished by the presence of the most beautiful and elegant restaurants and cafes designed according to the ancient architectural style, which attracts large numbers of tourists. Especially those who love ancient archaeological sites. It also includes many residential apartments designated for investment, with distinctive specifications and reasonable prices.
Legal procedures and legislation related to the investment of heritage real estate in the Emirates
Properties with a heritage architectural character in the Emirates are subject to a number of the following legal procedures:
- Foreign expatriates are not allowed to own real estate in the Emirates except in freehold areas and in accordance with the terms of Real Estate Law No. (19) of 2005.
- Foreign expatriates are allowed to rent real estate in the Emirates, provided that the rental contract is registered with the real estate departments in the local emirate. The lease contract must also include all the necessary information about the rent amount, the rental period, and the information of the property owner and the tenant.
- Foreigners are also allowed to obtain real estate loans after completing all the required papers and identification, including a passport, a valid residence visa, and a bank account in one of the UAE banks.
The role of heritage real estate in the UAE to attract foreign investors and tourists
Heritage real estate plays a distinctive role in attracting many foreign investors and tourists, according to the following:
- Providing various types of residential properties designated for investment in the vicinity of areas with an ancient heritage character, at reasonable prices.
- Providing many financial and legal facilities to help complete investment opportunities successfully and sustain them for long periods.
- High investment returns, especially rental returns, depending on the property’s location, area, and architectural design.
- The vital location of the heritage properties and the quality of their infrastructure, making them a destination for incoming tourists to enjoy staying there for a limited period and visiting the archaeological sites nearby.
The importance of tourism in promoting investment in heritage real estate in the Emirates
The tourism sector contributes to supporting and promoting investment in heritage real estate in the Emirates through the following:
- Attracting large numbers of tourists to the heritage villages distributed in Dubai, Abu Dhabi and Al Ain, and the need for tourists to rent apartments close to tourist attractions. Which stimulates investment opportunities in these areas.
- The beauty of the heritage areas and the splendor of their ancient archaeological designs, which contributes to the development of sustainable tourism and significantly supports the real estate investment market.
- Encouraging the construction of more residential complexes for rent in conjunction with the increasing numbers of tourism arrivals from different countries around the world.
Future trends for investing in heritage real estate in the Emirates
The most important future trends for investing in heritage real estate in the Emirates are to focus on the following principles:
- Working to revive heritage and culture in heritage sites and transform them into distinctive and attractive real estate destinations for Arab and foreign investors.
- Enhancing the infrastructure in heritage real estate areas with all available capabilities, so that they are unique and the focus of attention of the most prominent investors.
- Paying great attention to tourist attractions to increase the number of tourists arriving there and their desire to stay in neighboring properties.
- Blending the fragrance of the past with the spirit of the present in creating architectural designs for modern properties in Emirati heritage sites, in a way that enriches the curiosity of tourists who are primarily interested in the archaeological and heritage aspect.
- Developing flexible strategic plans to confront all urgent economic challenges in the real estate market, so that they are overcome without affecting the movement of local investment.
At the conclusion of our article, which focused on investing in heritage real estate in the Emirates and its role in attracting tourists. We can only praise the role of heritage areas in encouraging tourism and attracting tourists of different nationalities to visit prominent tourist attractions and their desire to spend their stay in one of the apartments prepared for rent. Thus, continuously supporting the real estate investment reality and achieving sustainable profits for investors in the long term.
