In 2022 the UAE is among the ten safest and most economically developed countries in the world. The government has long ceased to rely solely on oil production and export but is actively developing the tourism sector, the economic industry and the real estate market in Dubai. The state has adopted a number of laws that provide foreign residents with the opportunity to own real estate at 100% (so far only in freehold areas but in the future this trend may change).
In addition, free economic zones were created to attract more investors and businessmen who want to develop their own business in the UAE. And it was thanks to these main instruments that a large number of foreign investments were attracted to the state which “settled” for the most part in real estate.
Real Estate Trends
The real estate market in the UAE, in particular in Dubai, is represented by an abundance of beautiful skyscrapers with luxurious luxury apartments and cozy and comfortable villas. Until 2021 owning your own real estate in Dubai was prestigious and profitable because investors invested in housing in order to make a profit. Income from real estate could be different: renting out, reselling, rising prices for housing, etc.
But in 2021 demand for real estate in Dubai has plummeted due to the coronavirus pandemic. “Thanks to” the pandemic, the flow of tourists has decreased and the departure of qualified expats has increased. The UAE “survived” during this difficult period quite well and today in 2022 there is an active growth in residential properties both in Dubai and in other emirates.
According to ValuStart statistics in Dubai, interest in villas and townhouses has increased by 20%. Experts attribute this to the desire for solitude and special “isolation” from the outside world. Already in 2022 the number of purchase and sale transactions reached a record high since 2014 (61,241 transactions). More than 60% of transactions are related to the purchase of ready-made housing and only the remaining 40% were concluded for off-plan objects (construction in progress). According to the Department in 2022 the price of residential properties was increased by 33.4%.
Things are a little worse with apartments, potential investors are more interested in private real estate. But despite this, the cost of apartments also decently increased from an average of 1000 dirhams to 1500 dirhams per 1 sq.m².
Forecast for 2023
Bloomberg recently conducted a study, the results of which proved that the demand for residential properties in Dubai will not only remain at the same level (until 2021) but will also grow by 5.5% in 2023.
Dubai real estate market forecast in 2023 is based on statistical data. The thing is that in the period from 2020-2021 there was an active decline. In 2021 the situation leveled off and over the past years, property prices in Dubai have increased by 6-20%. Price increase dynamics was analyzed by Bayut & Dubizzle.
According to experts, the demand for real estate is provoked for the most part by the long-term prospect of earnings. The UAE is considered one of the most economically stable and secure countries in the world, so the increase in the cost of housing in the future is only a matter of time. Having bought luxury apartments in the emirate, in a few years they can be sold at least 2 times more expensive. The second reason for the growth in demand is supply. Dubai is an emirate famous for constant construction and erection of more and more luxurious and luxurious buildings. Today, this emirate offers more than 35,000 real estate options in various price ranges.
Price policy
As previously mentioned, it is villas and townhouses that are especially “appreciated” by investors in Dubai. And this is not surprising, because in addition to a large area, the villa “offers” comfortable living conditions, almost every house has its own swimming pool, recreation area and barbecue, several bedrooms and round-the-clock video surveillance and security.
The price of a villa depends not only on the area and interior decoration, but also on the area. Palm Jumeirah and Dubai Hills Estate are considered the most elite. Palm Jumeirah 1 sq. m. villas can be purchased from 2,645 dirhams, in the Dubai Hills Estate area, you will have to pay at least 1,240 dirhams for 1 m².
The average cost of 1 m² in various Dubai districts (indicated in dirhams):
- Al Furjan – 800.
- DAMAC Hills – 1000.
- Sports City – 900.
- Silicon Oasis – 750.
According to the forecast, prices are expected to increase in 2023, but the gradation will directly depend on the prestige of the object:
Premium housing will become more expensive by 35%.
Objects of the middle price segment will rise in price by 37-39%.
The most budget options are more or less stable, it is predicted that they will rise in price by only 5%.Price policy
As was previously mentioned, it is villas and townhouses that are especially “appreciated” by investors in Dubai. And this is not surprising because in addition to a large area, the villa “offers” comfortable living conditions, almost every house has its own swimming pool, recreation area and barbecue, several bedrooms and round-the-clock video surveillance and security.
The price of a villa depends not only on the area and interior decoration, but also on the area. Palm Jumeirah and Dubai Hills Estate are considered the most elite. Palm Jumeirah 1 sq. m. villas can be purchased from 2,645 dirhams, in the Dubai Hills Estate area you will have to pay at least 1,240 dirhams for 1 m².
The average cost of 1 m² in various Dubai districts (indicated in dirhams):
- Al Furjan – 800.
- DAMAC Hills – 1000.
- Sports City – 900.
- Silicon Oasis – 750.
According to the forecast, prices are expected to increase in 2023 but the gradation will directly depend on the prestige of the object:
Premium housing will become more expensive by 35%.
Objects of the middle price segment will rise in price by 37-39%.
The most budget options are more or less stable, it is predicted that they will rise in price by only 5%.
Benefits of buying a home in Dubai
So, what is it that attracts real estate investors in Dubai so much? Of course, the opportunity to earn money! But this is far from the only criterion. Dubai has technological development, a safe urban environment, infrastructure development, loyal tax system and no income tax collection. In the era of the COVID-19 pandemic the UAE has proven that the country is ready to respond quickly to danger and take all necessary measures to protect the health of both the indigenous population and foreign residents and expats.
Why Dubai real estate is so interesting for investors:
- Guaranteed safety of capital.
- Getting a stable income.
To date, the most “interesting” and sought-after areas in the field of real estate investment are:
- MBR City.
- Business Bay.
- Jumeirah.
- Dubai marina.
- Creek Harbour.
Investors are attracted by the competent policy of Dubai and the opportunity to make good money without making any special efforts and the state, in its turn provides an extensive real estate market, “filled” with objects of different pricing policies.