With numerous investment options available around and all promising to offer the best ROI, it becomes difficult to choose the right asset at the right time, within a given budget. Based on the trends, outcomes and over 80,000 real estate transactions in 2021 signify a positive outlook for the year 2022 and yes, it is still a good decision to invest in Dubai.
Growth driving factors
The credit goes to the government for getting the country back on the track of recovery as quickly as possible amidst the onset of COVID-19. Due to the successful roll-out of the COVID-19 vaccination, Dubai was one of the first global cities that lifted the ban on international travelling and hardly encountered a complete lockdown. Besides ensuring investors’ protection laws, the government has introduced investors’ visas for long-term stay in the country.
Expo 2020 played a huge role in attracting global visitors to Dubai and allowing them to explore this terrific city. According to an estimate, almost 5 to 6 % of the international visitors has shown interest in Dubai real estate.
Moreover, the interest rates are lowest and banks are ready to finance the real estate transactions for potential investors.
Resultantly…
Dubai is one of the fastest-growing economies in the world coupled with promising return on investment (ROI) in terms of capital appreciation and rental yields, Dubai claims to be one of the top places to invest in real estate. Though prices are steadily increasing (still lower than several established realty markets) yet investors are more than ready to invest in Dubai properties.
When it comes to property investment options…
It is observed that investors have lately been focusing more on high quality residential properties or showing interest in high quality off-plan properties and are ready to sacrifice immediate returns on investment in order to capitalize long-term yields.
The villa prices are depicting a double digit increase due to being in higher demand. Due to the exclusive lifestyle, additional amenities, and need for additional space during the spells of working from home in 2020-2021, people have been showing considerable interest in villas in Dubai.
Despite the introduction of the new Federal Corporate Tax, business investments and conditions in Dubai’s private sector have been sharply improved in February 2022.
“New business growth in Dubai is a “promising sign that the Omicron [Covid-19] variant has had only a minor impact on the economy compared to previous waves of the pandemic,” David Owen, an economist at IHS Markit, said.
Areas with the highest property prices…
Downtown Dubai is the most expensive area per square foot for apartments and Al Barari is the most in-demand for luxury villas in Dubai.
The Green Community (Dubai Investment Park) showed the biggest month-on-month rise in the apartment sector in February, i.e. 3 per cent gain. The area was followed by Jebel Ali, Jumeirah, and Dubai Festival City.
The villas in Jumeirah Village Circle (JVC) showed the highest increase in property prices, i.e. 3 per cent followed by Palm Jumeirah.
Property prices are on the rise…
When real estate experts suggest that now is the time to invest in real estate, they are right. Dubai property prices have shown an upward price trend in most of the areas during February 2022, according to CBRE.
The number of transactions has touched 11,071, which is the highest total recorded in the first two months of the year. Average apartment prices are rising 9.1 per cent and villa prices are reaching 21 per cent.
Invest now, when Dubai property prices are low…
Seeing the increase in the number and value of the property transactions in Dubai, it can be said that the time to invest in Dubai properties is now. According to an estimate, the value of property deals is more than doubled in 2021 and broke a 12-year record for the value of sales.
Dubai luxury property sales have also touched the highest value in 2021, since 2015 – which means, savvy investors are keen to invest in high-end properties. According to a report released by Knight Frank, “A total of 93 homes each worth more than $10 million were sold as wealthy buyers tapped into the post-coronavirus recovery.” It indicates the demand for high-end properties in Dubai.
If you are interested to be a part of the Dubai real estate sector, the best time is now. And the team HFRE is there to help you make an educated and well-informed investment decision. All you need is to contact us at +971 4876 2473 or write us at info@hfre.ae and one of our salespersons will get back to you with a bespoke investment plan and a variety of property options to choose from. After all, no one knows the Dubai property market better than our experts and you will also find the difference after working with us.
Hope to hear from you soon!
