Not so long ago there were speculations about the properties for sale in Dubai market that potential property investors would reject Dubai in the long-term and may never come back. However, a majority of real estate experts believed in the market’s strong rebound and the country’s resilient economy to back the real estate sector.
The unpredictable tenant default rate and increase in unemployment rate added more to the supply and drop in rental rates. This scenario left landlords baffled and worried about the future of the market. On the contrary, things started taking positive turns right after the second quarter of 2021, which resulted in positive sentiments and an unexpected surge in the property prices and demand for properties for sale in Dubai.
Dubai Real Estate Investment – An Emerging Trend
The UAE government showed the best response to manage the global pandemic that left several countries in an economic crisis. With the help of the UAE’s healthcare sector, the government launched a successful vaccination drive against the coronavirus before the advent of the global event. The excellent management brought exceptional results in form of AED135.4 billion in real estate transactions by November 2021.
There are tons of Golden-Visa linked property investment options out there from which you can choose from. With more than 90% vaccinated population, the fast-tracked emirate opened its doors for travellers and potential investors. Due to a large number of potential investors travelling to Dubai during Expo 2020, the real estate sector has witnessed a complete shift in demand and an increase in investment – amidst the pandemic.
More Property Investors Due to Price Correction
When supply was at its peak, prices were affordable and mortgage loans were readily available, it was the prime time for end-users to invest in properties for sale in Dubai. Not just the foreign investors invested their savings in the Dubai real estate sector but a majority of end-users came forward to park their hard-earned money. The trend began around the 3rd quarter of 2021, peaked during the global Expo 2020 but is still in continuation – months after the event was wrapped up. With high capital appreciation, strong rental returns and low mortgage rates, Dubai real estate market became the top real estate investment spot.
Future Looks Bright for Luxury Properties
With 4,083 luxury house deals closed in January 2022, the prices are expected to gradually increase in the months to come. Following this trend, a majority of property owners have held back their property or delayed the process in hopes of a 10 to 15 per cent rise in luxury property prices. Overall, asking prices for luxury villas in Dubai increased by 21.5 per cent year over year in 2021, with a record number of luxury houses sold in Dubai.
The new UAE law allows foreign investors and entrepreneurs to have 100% ownership of businesses, which has attracted entrepreneurs looking for business set-up in Dubai to better serve the MENA region. Resultantly, it caused many high net worth individuals to choose Dubai as a base and they invested in the luxury property sector of Dubai.
Substantial Increase in Terms of Prices
According to real esate experts at HFRE, a substantial increase was recorded in terms of per square foot prices of luxury an prime area’s properties for sale in Dubai including Palm Jumeirah, Downtown Dubai, Emaar Beachfront, and Dubai Hills Estate.
“Dubai luxury property market is all set to thrive at an exponential rate, with the same high momentum to continue throughout 2022. Despite the tremendous price rise, Rising demand and interest from the international elite do support the sector . With landlords holding back their properties, the post Expo future for Dubai luxury property market looks bright and it will continue brimming with new opportunities for serious property buyers and investors” states Ali Mustafa – the head of the sales department at HFRE.
What will 2022 bring to Dubai real estate sector?
Dubai is one of the top cities in the world with the highest number of green buildings. Moreover, the Dubai Municipality made it mandatory for all existing and new buildings to implement green building standards to achieve sustainable city status for Dubai by 2021. This clearly shows what 2022 will bring to the Dubai real estate sector. Green and sustainable developments will be major a highlight of the next few years to come.
Demand for Luxury Villas and Townhouses
Another major trend is an increase in the prices and demand for luxury villas and townhouses as compared to pre-pandemic years. The reason is that people are looking for bigger properties for sale in Dubai, with open spaces that can give them the liberty to move around and customize the layouts. It does not mean that apartments are no longer in demand but apartments for sale in Dubai are still one of the top investment choices for potential buyers.
The market will witness more end-users investing in properties for sale in Dubai and the reasons can be many including low mortgage rates, more savings, and investors’ protection laws. In short, Dubai real estate sector has always grown steadily and attracted more buyers due to high capital appreciation and more rental returns.
