Real estate in Dubai
If you have been watching the market for a long time, you have some idea of the price and you automatically set limits. This is the normal behavior of our psychology. But given the events of 2020-2021 with the pandemic and the emission of a huge amount of funds, we see a high level of inflation. In this regard, property prices rose by 12-17% in Europe and the US. Prices also rose in the UAE market, due to the preponderance of demand for purchase over supply. Therefore, if you have been watching the UAE real estate for a long time, you should reconsider the current pricing adjusted for world inflation. Remember, now is the best time to buy a real estate in Dubai.
Property in Dubai
The current situation in the real estate market in Dubai is represented by three factors.
- Firetly, there is the rise in oil prices.
- Secondly, a competent economic recovery after the coronavirus pandemic.
- Thirdly, regular innovations by the government to attract investors, skilled workers, and talented youth.
The Ruler and Vice President Sheikh Mohammed bin Rashid mentioned that over the past 2021, the gross domestic product of the United Arab Emirates exceeded the growth previously recorded in 2019. Its growth was 3.8%. Specialists from Emirates NBD Research say that in 2022 the economy is expected to increase growth: on average, by 5.7%. This will be possible, among other things, due to an increase in oil production.
The recovery and growth of the housing market are especially helped by government initiatives, thanks to which it becomes possible to attract investors from all over the world. An example is the reform of the golden visa, obtaining a residence permit.
In the first quarter of 2022, the cost of housing in the city increased by 11.3% on an annualized basis. It is also worth noting the record figure that was recorded in the first quarter of this year – the total volume of transactions amounted to a little more than 19,000.
The average rent also increased by 13.1%. And this indicator was the highest growth rate that was registered in 2014. Property experts agree that soon the market will see a new influx of investors who will be interested in buying a home.
Dubai tops Airbnb
Dubai regularly gets to the top of the best cities in the world for various factors: from the level of security to the social security of citizens. Today, another study was presented by one of the most popular portals Airbnb, which specializes in offers for short-term rentals.
According to the presented study, Dubai is the most profitable city, where the owner receives the highest income from a short-term rental properties. The biggest profit, in particular, is received by the owners of the properties, which is located next to the Burj Khalifa skyscraper.
Statistics show that owners who own property near this landmark can earn approximately USD 1,150 per night from rent. And in a year, the total income can reach USD 424,000. Accordingly, the owners may need only 4 months to pay back their investments.
On average, the cost of an apartment in the city is just over USD 140,000. And each owner has the opportunity to rent it out, paying back their investments and making a profit. Today, the housing market of the United Arab Emirates is considered one of the largest and most attractive ones in the entire Arab economy. And after a short-term slowdown, it has been growing rapidly for the second year.
Recent results of the market
One of the main principles of the real estate market in the city is openness and transparency. The DLD, as the responsible authority, publishes information on the number of transactions and sales volumes. Over one of the weeks in April, the Land Department registered 2,135 transactions totaling AED 8.2 billion.
It is reported that AED 1.45 billion is the total cost of 247 land plots, and AED 3.08 billion were spent on the purchase of apartments and villas in the amount of 1423 properties.
- One of the largest transactions is the sale of a land plot on the artificial island of Palm Jumeirah. Its cost was AED 280 million.
- In the second place there is a property in Hadaeq Sheikh Mohammed Bin Rashid worth AED 30.67 million.
- The third place was taken by the plot located in Al Warqaa 3. The cost of this land plot was AED 30 million.
Separately, it is worth considering the segment of apartments and villas.
- The most expensive property was an apartment located in the Marsa Dubai community. The cost of this property amounted to AED 441 million.
- In the second place is an apartment in the famous Burj Khalifa skyscraper worth AED 306 million.
- The third place was taken by an apartment in the Business Bay area, which cost was AED 276 million.
Real estate market is gaining momentum
Real estate experts say Q1 2022 results are the highest since 2010. And such results allow us to inspire confidence in the subsequent development of the real estate market.
The attractiveness of housing remains relevant. Both residents of the emirate and international investors continue to invest in new and resale properties. For the first quarter of 2022, a total of 25,972 transactions were registered. And this indicator has become the most productive since 2010.
The off-plan real estate market boasted 8,616 properties sold for a total value of USD 4.39 billion. As for the secondary housing market, 11,923 properties were sold here. Their total cost was USD 39.39 billion.
In the first quarter, the following areas became the most popular for sales: apartments were sold and bought most often here:
- Dubai Marina,
- Palm Jumeirah,
- Jumeirah Village Circle,
- and Business Bay
In terms of villas and townhouses, the most sought-after communities are:
- Dubai Hills Estate,
- Arabian Ranches,
- Palm Jumeirah,
- and Damac Hills.
Real estate agency in Dubai
Do you want to buy housing in Dubai, but don’t know how to make the right choice? Contact real professionals from Ax Capital real estate agency. They will help you find the best property that will meet your requirements.