Investment trends in Dubai the UAE real estate market

Property in Dubai

The UAE real estate market is popular with investors. Real estate in Dubai: houses, villas, and townhouses are of great interest. A notable decline occurred against the background of the pandemic. Investors stopped investing in real estate. However, in 2021 the situation began to recover, and now in 2022, it is even better. Suffice it to say that over two thousand lots were sold in the first quarter, which is more than three times more than in the same period of 2020. This situation cannot but please investors investing in the UAE. Though, if we compare prices for apartments for sale in Business Bay the UAE now and a couple of years ago, it will become obvious that now is the perfect time to invest in real estate.

Growth of investments noted in all segments

Analysts of the real estate market in the UAE note that demand has grown not only for new buildings in Dubai. Sales of new apartments this year increased by 40%, while the number of sales in the secondary market increased by more than 70%.

Record figures were noted in the suburban real estate segment. Villas and townhouses are especially popular this year. Here the growth was more than 230%.

Investors have preferences for areas. Close to 30% increase in deal deals in areas that have always attracted buyers:

Arabian Ranches;
Dubai Hills Estate;
The Springs;
Nad Al Sheba.

Also among the leaders, there were Palm Jumeirah, Green Community and Town Square, where the number of transactions increased by 3.5, 6 and 8 times, respectively.

The increase in sales was reflected in the value of the real estate

Simultaneously with the increase in the number of deals concluded, the UAE real estate market was marked by rising prices. This has happened for the first time since 2014. Then, against the backdrop of cheaper oil, the cost of housing in Dubai fell sharply. The most critical year was 2016. The pandemic has also taken a toll.

The UAE authorities have taken measures to support businesses and residents of the country. Since the start of vaccination, several visa programs have been launched. Some concerned pensioners, others – people involved in the business. For example, entrepreneurs were given the opportunity to apply for a “golden visa”, which gives them the right to reside in the country for 10 years.

For the large-scale development of the country, a master plan was developed. His goal is to make Dubai the perfect place to live. It should be noted that the project has already begun to be implemented.

Rent stabilization

Business development largely depends on the cost of renting property. In order to stabilize the situation, the UAE authorities plan to freeze the rent. So far, the plans are to do this for three years after the conclusion of the contract. Entrepreneurs note that such a measure will make it possible to predict their actions and expenses aimed at business development. Accordingly, this will attract investors to the country’s real estate market.

Plans to increase investment activity

The pandemic has hit the property market hard. After the introduction of quarantine, tenants began to leave the country.

The start of vaccination and the opening of borders had a positive effect on the situation. Investors again headed to the UAE, which caused an emerging increase in housing prices. Analysts are convinced that the emerging dynamics will intensify.

At the moment, the influx of investors is only growing. This cannot but contribute to the exit from the stagnation of the property sector.

At the same time, analysts believe that one should be careful and responsibly approach the choice of properties for investment. Despite the emerging improvement, one cannot confidently speak of stabilization. It is necessary to analyze the situation, assess the prospects, in some cases, use the advice of professionals.

Real estate in Dubai

Investing in foreign property can be challenging if you are dealing with it on your own. Using the help of professionals and becoming an owner of a villa in Dubai will bring you only positive emotions. Emirates.Estate is a website where you can find a wide range of offers that will suit any budget and requirements.