Trends In Dubai Real Estate That Are Driving The Market
Expo 2020, the government’s competent response to the COVID-19 epidemic, and the successful vaccine campaign all contributed to 2021’s robust economic growth. With the market only expected to expand, it has extended its winning streak through 2022. In the same vein, recent developments in Dubai’s property market show a similar pattern.
Top Dubai Real Estate Trends
Taking into account the aforementioned information, it is reasonable to conclude that the market is moving at a brisk rate. Let’s examine the forces propelling the Dubai property market by looking at the latest developments in this sector.
Increasing Demand for Luxurious Properties
The demand for high-end real estate in Dubai has skyrocketed in recent years. Others estimate that by 2022, the luxury real estate market’s share will have doubled. One of the most common real estate trends that are helping to propel Dubai’s development is the purchase of high-end residences.
Foreign investors and ultra-high-net-worth individuals (HNWIs) are driving the growth in demand for high-end homes. The visa restrictions have been loosened, which is another important element in this explosive rise.
The demand for high-end real estate in Dubai skyrocketed in the late 2020s. In the wake of the COVID-19 epidemic, property values dropped, attracting buyers and investors. Although 2021 was the greatest year ever for real estate deals of more than AED 10 million, the trend persisted.
Beginning 2022 with a bang, the first quarter witnessed an all-time high of 483 sales of high-end real estate. The luxury market also had a stellar second quarter and continues to impress in the current third quarter.
Ready Properties Dominate Market
The Dubai real estate market may be broken down into two basic types: the primary (off-plan) market and the secondary (ready-to-move-in or ready) market.
The former category includes projects that have just been announced or are in the planning stages, while the latter category includes completed homes. Off plan properties in Dubai have more affordable prices since they are still in the construction phase when most buyers are interested in buying. Similarly, developers often entice consumers with discounts, payment plans, the elimination of DLD fees, and other enticements. Conversely, ready-to-move-into homes tend to cost more.
Off plan properties in Dubai continue to be in high demand because of their lower price and incentive. Yet, according to recent developments in Dubai’s property market, turnkey homes are selling like hotcakes.
Recent real estate statistics indicate a month-over-month rise of 27.4 per cent in the number of sales of completed homes in the month of August. The number of deals increased by 67.5% compared to August 2021. In dollar terms, the growth was 6.7% month-over-month and 37.4% year.
Yet, this does not indicate that the off-plan market is experiencing a slowdown. In fact, August of 2022 set a new monthly record for this phenomenon. In August, there were 4392 off-plan property purchases for a total of AED 8.5 billion, the largest monthly total for such deals in the last 12 years.
Short-term Rentals Ready for an Uplift
The rental market in Dubai is always robust since the city is such a well-liked vacation destination. Yet, the rental market is predicted to increase this year. In particular, this growth is good news for the short-term rental market.
The next FIFA World Cup, set to be hosted by Qatar, will be a major contributor to the anticipated growth. Given the closeness between Dubai and Qatar, and the scarcity of hotels in the latter, many visitors to the world cup will choose to stay in Dubai.
Demand for short-term rentals has increased as a result of the high cost of hotels and resorts in Dubai. Several property owners are making the transition from annual to short-term rentals in preparation for the influx of visitors expected for the 2017 FIFA World Cup. To make visitors’ stays easier, the United Arab Emirates has now unveiled a new multi-entry visa.
The Dominance of Villas Persists
Villas are an undeniable part of the most popular real estate trend in Dubai today. During the COVID-19 epidemic, demand for villas in Dubai began to rise in the same way as it had for high-end real estate. They realized the value of having large houses after being confined to them for a long time. And there has been no turning back ever since.
The demand for and cost of villas in Dubai has increased. This is true across the city, from Dubai Hills Estate to Arabian Ranches to DAMAC Hills to Palm Jumeirah. In fact, market analysts predict that by the end of this year, villa values will have surpassed those seen in January 2014.
According to data, the price of a villa in July 2022 was 19.3% more than in July 2021. The Palm Jumeirah villa market grew by 51% year-over-year, with increases of 30% in both District One and Dubai Hills Estate.
Conclusion
Our survey of market-moving real estate trends in Dubai is now complete. If you are considering making an investment, you should think about these developments.
