Why invest in Dubai
Dubai maintains a leading position over the rest of the emirates and competes with Abu Dhabi. The real estate market, after the 2019-2021 depression caused by the COVID-19 pandemic, has shown good growth in 2022: in July 2022, compared to the same period last year, property prices rose by an average of 9.94% and rental prices rose by 23.69.
beautiful view of Dubai marina
The cost of property for sale in dubai al barsha is lower than in many other metropolitan areas, which makes it attractive from a real estate investment point of view. Profits from renting out properties just from https://everhomes.ae/ can bring 8% a year or even more. Dubai offers a lot of options for real estate investments, such as residences, hotels, apartments, etc. In addition, the purchase of real estate gives the opportunity to get a long-term visa in the UAE.
Read more about this on the page about real estate investments.
Trends in Dubai real estate market by year (residential property)
Real estate sales in June 2022 totalled 22.7 billion dirhams (AED), according to a Dubai Land Department report. As of July 1, 2022, 70.8% of the 2021 sales had already been realized. UAE government initiatives such as the expansion of the golden visa program and new types of residency permits (for retirees and people working remotely) have contributed to the growth of real estate prices in 2022.
Dubai real estate market dynamics by year (commercial real estate)
The graph of the dynamics of average commercial real estate prices in Dubai since 2014 showed a smooth decline with two small spikes in 2017 and 2021. In 2014, the median transaction value for commercial real estate was AED 1.5 million, and in July 2022, it dropped to AED 753, 000. The biggest drop in price was in 2020, the height of the COVID-19 pandemic.
Pros and predictions
Studies show that homebuyers around the world are increasingly opting to buy homes in walkable neighbourhoods that are built with sustainability in mind, have access to open space and green space, and offer a better quality of life.
Dubai's residential real estate sector, which has been gaining momentum in the past two years, has been no exception to global trends. Villa sales have increased compared to last year and continue to grow. The luxury residential real estate market has grown by almost 60% in the past 12 months, reaching its highest level since 2015. In 2021, 93 homes worth more than $10 million each were sold in Dubai, more than the total from the previous 5 years.
As the world's richest people are now seeking to minimize investment risk and diversify their portfolios by increasing the proportion of investments in real estate, which is a tangible asset type, the outlook for the real estate market in metropolitan areas is mostly positive. With the number of ultra-high-net-worth individuals expected to increase by 27 per cent by 2025, it would be logical to expect the current trend toward the desire to invest in real estate to develop.
The everhomes agency predicts that 100, 000 more apartments will hit the market by the end of 2025, and more than 50, 000 homes will be completed by the end of 2022.
The residential real estate market. In 2019, the UAE government began issuing long-term residency permits - the so-called "golden cards" - and this has led to population growth and increased demand for residential properties. The EXPO-2020, which opened in Dubai, attracted a large number of tourists and foreign workers to the country, which also led to a revival of the residential real estate market.
Commercial real estate market. Due to a large number of ex-pats and a large consumer base, retail has shown significant growth, and this has increased the demand for retail space. The tourism sector has shown steady growth in all recent years due to the tourism development strategy that Dubai initiated in 2013. This leads to increased demand for hotels and apartments. The office market is booming thanks to many global brands opening their representative offices in Dubai. The demand for co-working spaces is growing, with up to 7 million people expected to work in them in the UAE in the near future.
Promising areas for investment
The purchase of the real estate in Dubai is an excellent investment in the future, and property prices are quite affordable and comparable to the prices of apartments in prestigious European cities. Foreign citizens often buy housing from the builder, as the difference between the price at the beginning of construction and after its completion can be up to 30%.
