With Strong infrastructure, tax-free status, safe surroundings, new residence visa options associated with investment and excellent opportunities for business development, Dubai has become a business and investment hub. Foreign investors have been flocking to Dubai from every part of the globe to start a new business venture or invest in Dubai real estate. The real estate market continued to recover strongly, backed by a steep climb in both volume and value in September involving off plan and ready properties for sale in Dubai.
Analysis of Dubai property prices
According to a report by CBRE, a real estate consultancy in Dubai, the total number of property deals reached 7,273 in September – an increase of 33.4 per cent in numbers on a year-on-year basis. The sales volume increased by 51.4 per cent for off plan property sector and 17.3 per cent for the secondary property market, during the same period. In the 12 months to September, the total number of transactions reached 62,396 – the highest number recorded since 2009 over the same period.
While, no bubble risk reported yet for Dubai property market, the average prices for residential properties increased by 8.9 per cent in the last 12 months. An average 8 per cent increase was recorded for apartments and a more than 14 per cent jump was recorded for villas for sale in Dubai.
Dubai – A real estate investment hub
Rescued by the UAE government’s timely reforms and directives and further strengthened by it’s revolutionary steps including the golden visa options and varied investment options along with hosting Expo 2020, the real estate sector was able to achieve a higher volume of transactions. The statistics reflect the sector’s ability to progress under exceptional circumstances and have further strengthened Dubai’s position as a global property investment hub.
According to the CRBE’s report, despite the sharp increase, these average rates are “still below the highs witnessed in late 2014”, with apartments remaining at 23.8 per cent and villas staying 21.6 per cent below that peak.
Foreign buyers dominating Dubai real estate market
Dubai continued to outperform almost all other international real estate markets, as the post-COVID migration continues swiftly. Dubai real estate sector witnessed an amazing quarter for completed transactions, with 22,895 units sold, which is up by 61 per cent from the third quarter of 2021, attracting both local and international buyers.
When it comes to classifying the potential and existing property buyers for properties for sale in Dubai, we see that Europeans have dominated the market since the beginning of 2022. Global conflicts (especially between Russian and Ukraine) increased the migration of Europeans to the UAE, which has placed Russian property buyers in the limelight, in the foreign buyers’ category. In H1 2022, Indians were the top property buyers in Dubai followed by UK nationals and citizens from Italy, Russian and France. The scenario is changed now, with Russians overtaking Indians to become the top property buyers in Dubai, followed by the UK that holds the second position.
India, Germany, France, USA, Pakistan, Lebanon, Canada, and Romania come next in the list of top property buyers in Dubai.
Higher demand for prime districts in Dubai
Several prime areas in Dubai have witnessed a record-high demand for luxury and ultra-luxury properties over the past 12 months. Not just the demand but the prices of luxury properties for sale in Dubai across several prime locations have spiked at a record high rate. The prices for luxury properties in Dubai prime areas are increased by around 90 per cent.
The re-launch of Palm Jebel Ali shows sheer demand for Dubai properties, and the exciting results will start surfacing soon in the fourth quarter of 2022. Besides that, Palm Jumeirah continues to attract a huge amount of interest from both local and foreign property investors, with an incredible increase in prices. No signs of slowing can be seen at the moment for properties for sale in Palm Jumeirah.
Apartments for sale in Palm Jumeirah showed strong price growth of 10 per cent. The prices of apartments in DAMAC Hills and Mohammed Bin Rashid City increased by 7 per cent and 6 per cent, respectively. Simultaneously, the prices of apartments for sale in Dubai Studio City and Al Khail Heights grew moderately, at 3 per cent.
Conclusion
Notably, the number of property transactions surged in the emirate amid economic recovery. A majority of property agents in Dubai are of the view that the same trend will continue in 2023 and in the years to come. Super-rich property buyers from countries like Russia, the UK, the US, India, Canada and Pakistan will keep investing in properties for sale in Dubai, as it emerged to be an attractive realty market.
Isn’t it an exciting sector to be a part of? No matter, where you are and what are your investment plans in Dubai real estate sector, it will be a viable investment option. And all you need is to partner with the best team to start and complete the process.
If you have chosen a particular area or picked a property in Dubai, you can text or call the sales team at HFRE at +971 4876 2473 or you can also write us an email at info@hfre.ae and our sales representative will get back to you with a bespoke investment plan or a list of handpicked properties that can best fit into your budget.
