With the highest number and value of secondary market transactions seen this quarter, it is safe to safe that Dubai’s real estate market is in a good place.
Post-pandemic, the market is expecting to rise even further and the raft of demand drivers set in motion over the last few years are now bearing results, reported CORE. Dubai is becoming a leading gateway city to live, work, and play, underpinning its residential and commercial real estate demand.
Here are the top 6 things you need to know about Dubai’s real estate market right now:
1. About 5,700 residential units were delivered
In Dubai, 13,500 units are expected to be delivered in Q4 2022, moving the yearly forecast downward from 38,000 to nearly 32,500 units. Most deliveries continue to be in the apartment segment with only 22% of YTD deliveries being villas. This creates a supply deficit in the villa market.
2. Dubai’s real estate market records the highest number of sale transactions above $27.2mn this year
The city recorded 16 transactions YTD 2022 in the secondary and off-plan market compared to a total of 5 transactions in 2021.
3. Inflation creates an inherent risk for the residential market
While overall market sentiment remains positive, issues around affordability are emerging. The overall rise in acquisition costs in Dubai’s real estate market is particularly impacting the affordable and mid-market segments with some end-users increasingly being priced out.
4. Steep rises in the rental market
Gross villa yields are up from 5.1% to 5.6%, while gross apartment yields have risen from 6.1% to 7.1% year-on-year. With most districts witnessing over 25% increase, affordability is being impacted and is becoming a growing concern amongst tenants.
5. Demand is overtaking supply in the office market
This trend is due to sharp rises in occupancy levels and very limited quality stock available in the market.
6. Demand for co-working spaces has increased
Companies trying to expand and new market entrants looking to set up operations in the city have both contributed to the rise in deman
source-www.gulftoday.ae
Office rents in Dubai are rebounding for the first time in six years, rising faster than in New York or London as global banks and businesses expand into the financial hub known for its love of glitzy construction.
The rush for office space in the emirate is on show in skyscrapers like ICD Brookfield Place, which towers 928.5 feet (283 meters) over the financial district. The tower opened just as the pandemic spread globally, but roughly 90% of its 1.1 million square feet of office and retail space is now taken or under offer, with a long wait list for the rest.
Tenants include UBS Group AG, Israeli fintech firm Rapyd and Pernod Ricard SA, which relocated staff from Hong Kong.
Demand for space in the skyscraper and across Dubai is surging as the emirate attracts more wealth and expats due to its nimble response to the pandemic and relatively easy access to visas. Meanwhile, workers are returning to offices at a particularly high rate. A growing clutch of firms are also expanding in the sun-splashed business hub as they move offices from places like Hong Kong and Russia.
‘Lifting Up’
“The whole market is sort of lifting itself up,” said Rob Devereux, chief executive officer of ICD Brookfield, a joint venture between New York-based Brookfield Asset Management Inc. and the emirate’s sovereign wealth fund, Investment Corporation of Dubai. “We’ve seen the return to the office much stronger than other jurisdictions” like the US and the UK, he said.
The turnaround in Dubai marks a significant shift in the city’s commercial real estate sector, which was one of the hardest hit during an oil-induced property slump in 2014.
source-/finance.yahoo.com/
Dubai indeed is one of the best destinations in the world, and for various purposes! Be it tourism, investment, economic or service environment. Everything seems to be out of the ordinary, which makes people from around to globe attracted to it!
Investing in this breathtaking address definitely sounds to be an idea for long-term results. In that, real estate investment remains the most profitable of all, with security guaranteed. Not only are the locals looking to invest in Dubai the land, but ex-pats cover 90% of the population.
With the world-class sky-scrappers, glittering skyline, and mega malls bustling around. Dubai definitely has a lot in store for you, and its cutting-edge technology will escalate property demands and rates in the coming years.
Reasons to Invest in Real Estate Market of Dubai
If you’re wondering whether or not real estate is a good deal. Here’s why it is!
- Steady Income
When you invest in a property in Dubai, you can expect steady returns on investment. The rental market here is quite lucrative, with great returns expected. With that, be it any kind of property, you’re bound to get amazing ROI. When you choose the right real estate agency like evernestre.ae you’re bound to get help regarding the best properties to buy.
Be it a rental or a long-term residency, you can get an idea of which project to invest in. The rental market in the city is pretty robust, which makes your chances are steady earning, very high. Investing in properties, be it villas, townhouses, off-plan apartments or studio flats will bring results.
- Tax-Free Haven
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The first and foremost reason for investing in Dubai has to be its tax-free element. Live care-freely, and don’t bother about annual property tax anymore! Yes, homeowners in Dubai are free from all the liabilities that they experience when living in a big city like Dubai. The only payment that you make is for the registration of property and nothing apart from that. With zero tax on properties, imagine the lucrative investment returns to enjoy.
- Practical Pricing
Housing options in Dubai won’t make a hole in your pocket. When it comes to investment, you’ll be surprised to know how affordable it is to buy a home. The property pricing per square meter is quite lower when compared to other big cities. So, people from around the globe can think of utilizing their savings in a smart & developing land like Dubai.
- Low Crime Rate
Thanks to the city’s strict rules, laws and regulations, make it the safest city in the world. The quality of life experienced here cannot be relished elsewhere. Dubai has the lowest crime rate, and a well-functioning legal system adds a contributing factor to it. Investing in a safe country certainly ensure your property is in the right hands!
- Investor Visas
One of the many advantages that attract foreign investors is the kind of visas offered to them. One of the most popular is the golden visa which offers investors 5 to 10 years of residency! This long-term residency option indeed is an opportunity that you cannot miss. However, in order to be eligible for a Golden visa, investors have to make an investment of a specific amount.
- Freehold Ownership
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Another exciting reason for you to invest in Dubai is the freehold ownership offered. Investors from anywhere around the globe can invest in Dubai’s freehold areas and take complete ownership of property. There are endless communities, in exceptional locations and neighbourhoods! You as an investor can easily sell, lease, live, and do anything that you wish with your property.
- Properties Overloaded
There is something for everyone, no matter what budget you have in mind. If you’re looking for affordable homes, or luxury, ultra-luxury, grand living in Dubai. The options of apartments, duplexes, townhouses, and penthouses, are in abundance. If you want to invest in Dubai’s real estate latest off-plan properties, there are Damac Safa Two, Laurel Central Park, Beverly Hills Villas, and many more. The latest addition of Laurel Central Park is by premium development Meraas in Dubai. From an array of options comes a unique location too, with different pricing to choose from.
- Business Friendly
Dubai undoubtedly is a hub for business, technology and growth! Starting a business in the city seems to be an extremely simple, yet straightforward idea. The only thing you need to have is money to invest in your business, an office to rent or buy and go through a legal procedure, that’s it. It is what makes the market for running a business, very seamless.
Conclusion
Whether it’s about tourism, investment, or making a living, the friendly environment of Dubai is what sets it apart. Investors have many advantages here that are not available in any other country! With the list mentioned above, many things are clear, including the benefit of owning a home in a vibrant city like Dubai. So what’s keeping you await, 2022 is the right time to not think but take action and buy a property!
source-www.scoopearth.com
The project, which is located in the Palm Jumeirah area, is being developed by Nakheel.
Inayat-ur-Rahman, Business Editor
Dubai is attracting a big stake of the wealthy people to buy luxury real estate property in Dubai. Recently, the Indian billionaire Mukesh Ambani bought a beachfront villa worth $80 million (Dhs 300 million) in Dubai, which is the largest residential realty deal in the city ever.This was stated by Walid Al Zarooni, , Chairman, W Capital, during an exclusive interview with Gulf Today, adding that the City of Wonders is on the way to become the most expensive city in the world.
Al Zarooni believes that Dubai is a safe haven for the wealthy and had gained their confidence, especially during and after the “COVID-19” pandemic, thanks to the great state of mobility in terms of infrastructure, services and entertainment, in addition to the urban shift supported by the government’s ambitious plans.
W Capital, the leading real estate brokerage company in Dubai, has successfully sold a full floor in the Palm Beach Towers project in the Palm Jumeirah area.
Al Zarooni revealed that the project, which is located in the Palm Jumeirah area, is being developed by Nakheel , the leading real estate developer.
He stressed that the success of “W Capital” in promoting the project and selling an entire floor, reflects the great confidence in the brokerage company in the Dubai real estate market .
He pointed out that the Palm Beach Tours project is under construction and is underway to be completed and handed over on schedule.
Al Zarooni noted that Palm Beach Towers, which is one of Nakheel’s residential, leisure and beach projects in the famous Palm Jumeirah, is at the stage of launching building number 3.
He reported that the new edition features a selection of exquisite 1-3 bedroom apartments furnished by B&B Italia, as well as full floor units on the upper floors (47-51). All units will have a balcony overlooking the stunning beachfront and Dubai panorama.
source-www.gulftoday.ae
The UAE real estate market staged a remarkable growth this year as the global investors reposed trust in the emirate's successful strategy against the Covid-19 pandemic, consistent economic policies, excellent infrastructure, visa, and business reforms by investing more in the property sector, especially in the luxury segment that attracted significant investment.
The emirate has attracted more than Dh170 billion investment in the real estate sector during the first seven months of this year and there is no slowdown in growth momentum despite the government’s efforts to cool down the sector. Dubai real estate sector continues its upward trend and is expected to gain further momentum in months to come on the rising demand for luxury villas as well as apartments and townhouses in prime locations.
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The Dubai property market recorded more than 43,000 real estate transactions worth Dh115 billion during the first half of 2022. These remarkable figures show an increase of up to 87 per cent as compared to the first half of the preceding year. June 2022, in particular, proved to be a record-breaking month with nearly 8,900 sales transactions. The combined value of these transactions was recorded to be Dh22.75 billion.
Meet three friends cycling from Tajikistan to Saudi Arabia via UAE
On a similar note, the Abu Dhabi property market also covered the lost ground during the first half of 2022 and responded by recording 7,474 real estate transactions worth Dh22.38 billion during the period from January to June 2022, marking significant growth as compared to 2021.
The aforementioned figures show that Dubai and Abu Dhabi’s real estate sectors are on the course of producing favourable results for the UAE economy on the whole.
Foreign investment driving the property market
Dubai receives a major chunk of foreign investment when it comes to real estate sectors across the UAE. The Abu Dhabi property market also gets its fair share of interest in foreign investments with the launch of new residential and commercial developments in the capital city.
Statistics reveal that Russia, Ukraine, and The UK are among the top nations investing in Dubai and Abu Dhabi property markets. Besides that, investors belonging to India, Pakistan, Canada, Italy, and France have also made significant investments in both these emirates.
Investor and expatriate-friendly policies and a strong resilience against the global recession are two major reasons attracting foreign investors along with HNWIs to these property markets. Besides that, investors are keen to secure deals for luxury properties. Dubai alone recorded 82 deals for ultra-prime properties in the first half, paving the way for a record year in terms of such deals.
Reformed visa rules
The reformed UAE visa rules have also contributed to the growth of the property markets in the UAE. These modifications have made it comparatively easier for investors to make a real estate investment and obtain a golden or silver visa since the conditions set for these visa types have been relaxed.
The aim behind these visa relaxations was to make the UAE property market more accessible to foreign investors. And recent statistics show that the authorities have been fully successful in achieving this aim.
The expo effect
Expo 2020 opened its doors for visitors when the entire world was reeling from the effects of the novel coronavirus, but Dubai set an unprecedented example by successfully hosting it. The benefits, as we all know, extended to other emirates and sectors as well. The successful management of this event showed reinforced global investors’ confidence in Dubai.
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It’s been almost six months since Expo 2020 dropped its curtains. Yet, Dubai continues to benefit from this marquee event. And now that Expo City is set to welcome residents and businessmen a couple of months from now, a boost in the real estate sector can be expected.
For the unversed, it’s going to be a future-centric mini city in Dubai that’s located in the same spot where Expo 2020 was held.
New property advertisement guidelines
In a bid to make investing in Dubai safe for everyone, DLD issued updated regulations for property advertisement recently. While it’s a step taken in the right direction, many believe it can have a dent in the performance of the real estate market.
However, I believe this initiative will strengthen the market’s position as a safe place for investors and even end-users. They would know that the property contains all the elements that it’s advertised for. So, only genuine queries will be received by the property portals, which have high chances of converting them into a sales transaction.
source-www.khaleejtimes.com
Dubai’s real estate market recorded a total of 7,092 sales transactions in July 2022, the highest in nearly a decade, data showed on Thursday. The peak in 2013 stood at 5,024 transactions.
The sales transaction volume was up 63.56 per cent over the year-ago period, and 88.41 per cent higher in terms of value.
The off-plan sales transactions saw the highest transaction volume in July, up 67.13 per cent in terms of volume, and 81.43 per cent in terms of value, compared to the same period last year.
Rentals, too, grew strongly with 42,698 registered leases of which 56.04 per cent were new contracts while 43.96 per cent were renewed, an overall increase of 4.33 per cent over the year-ago period.
Popular areas
According to Property Finder’s proprietary data, the top areas searched for sales in July were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, Jumeirah Village Circle, and Jumeirah Lake Towers were among the overall top areas searched for sales in July, data showed, while Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), Mohamed bin Rashid City and Dubai Land were popular for villa/townhouse sales.
Most rental transactions during the month were seen in Jebel Ali First, Al Warsan First, Business Bay, Al Barsha South Fourth, Al Qusais First, Marsa Dubai, Nadd Hessa, Al Thanyah Fifth, Al Barsha First, and Mirdif.
Index readings
In July, Mo’asher -- Dubai’s official Sales Price and Rental Performance index launched by Dubai Land Department (DLD) -- recorded a 1.338 monthly index for sales and an index price of Dh1,303,493. The apartments’ monthly index was at 1.414 and an index price of Dh1,218,379, while the villas/townhouses index clocked 1.349 and an index price of Dh2,162,530.
Mo’asher also recorded a 0.978 monthly index for rentals and an index price of Dh52,248. The apartments’ monthly index was at 0.981 and an index price of Dh48,688 whereas the villas/townhouses’ monthly index touched 0.880 and an index price of Dh135,456.
The base year for Mo’asher is 2012, and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.
source-gulfnews.com
Dubai: The Dubai property market saw sales to the tune of Dh47.3 billion in the second quarter of 2022, a 9.8 per cent growth compared to Dh43.06 billion in the year-ago period, data showed.
A total of 13,857 apartments, 1,836 villas and 4,166 town houses were sold during the period.
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The prime real estate category, which includes areas like Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Jumeira Bay and Palm Jumeirah, saw sales volume surge by 23 per cent. A total of 6,893 property transactions took place with a value of Dh21.5 billion, a Luxhabitat Sotheby’s report said.
Areas that showed a significant increase in volume between Q1 and Q2 are Dubai Marina, where sales volume almost doubled from Dh888 million to Dh1.75 billion; Downtown Dubai, where sales almost doubled from Dh2.6 billion to Dh4.8 billion, and Jumeirah Islands, where volume doubled from Dh201 million to Dh402 million.
The top three neighborhoods in terms of sales volume in the prime segment were Palm Jumeirah (Dh4.9 billion), Downtown (Dh4.8 billion), and Business Bay (Dh2.2 billion).
“Showing signs of positive and sustained growth, Dubai’s real estate sector continues to attract high net worth investors from across the globe. While many markets worldwide are facing geopolitical and economic uncertainty, Dubai continues to be a beacon of resilience. In recent months we are seeing investors from UK, India and Germany driving demand, with many of our buyers looking for ready properties and branded addresses. Of course, with property a safe hedge against high inflation, we expect demand to continue along similar line into the third quarter of this year,” said George Azar, CEO at Luxhabitat Sotheby’s International Realty.
In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown Dubai (Dh4.8 billion), Palm Jumeirah (Dh3.7 billion), and Business Bay (Dh2.2 billion). Demand for apartments outstripped that for villas, both in the overall and the prime sector. In the case of the former, apartment sales volumes grew by 40 per cent compared to the past quarter, with a total sales volume of Dh15.8 billion, up from Dh11.3 billion in Q1. Downtown proved the most popular location for apartment purchases, almost exclusively, where 1,724 apartments were transacted.
While demand for apartments has been on the rise, demand for villas declined by almost 42 per cent in the prime sector in Q2 compared to Q1, based on number of units sold. Bucking the trend, however, were villas in the secondary market, where sales volume was up in the neighbourhoods of Jumeirah Islands by 99.9 per cent and in Jumeirah Golf Estates by 76 per cent.
Though demand was down, average prices were up from Dh9.6 million to Dh11.8 million for prime villas, with the price per average sq. ft increasing from Dh1,857 to Dh2,069. Palm Jumeirah (Dh1.15 billion), Emirates Living (Dh918 million) and Mohammed bin Rashid City (Dh911 million) were the most popular areas for prime villa transactions.
source-gulfnews.com
The most expensive property to be sold by Luxhabitat Sotheby’s International Realty in Q2 was a Dubai Hills Grove mansion on the ‘Street of Dreams,’ a 34,113 sq ft property valued at Dh128 million.
Top 10 residential transactions in Q2 2022
- Dubai Hills Grove, Dubai Hills | Price: Dh128,000,000 | Built-up area: 29,998 sq. ft
- Palm Jumeirah, The fronds, Frond G | Dh126,250,000 | 15,905 sq. ft
- MBR City District One | Dh110,000,000 | 33,347 sq. ft
- Umm Suqeim 3 Marsa Al Arab, Jumeira Bay | Dh105,000,000 | 14,570 sq. ft
- Emirates Hills Villa – Sector L | Dh102,800,000 | 20,000 sq. ft
- Dubai Hills View, Dubai Hills | Dh96,000,000 | 34,961 sq. ft
- MBR City District One, Cluster C | Dh85,000,000 | 31,333 sq. ft
- Palm Jumeirah, Six Senses | Dh82,170,000 | 26,514 sq. ft
- Palm Jumeirah, Six Senses | Dh81,800,000 | 26,514 sq. ft
- Palm Jumeirah | Dh73,000,000 | 10,766 sq. ft
Dubai's prime residential property market witnessed stable growth in the second quarter, thanks to major investment from Northern European investors.
According to the latest report released by Luxhabitat Sotheby's, demand for apartments outstripped villas in the second quarter as the overall market volume surged by close to 10 per cent when compared to Q1 2022, with a total of 13,857 apartments, 1,836 villas and 4,166 townhouses sold at a total value of Dh47 billion.
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After the pandemic in 2020, demand for villas had seen a massive increase as people started to look for bigger spaces due to work-from-home and restrictions on the movement of the people. But apartments are again seeing strong demand as the number of coronavirus cases stays low in the country.
"Buyers from Northern European are the top investors who have bought the prime property in Dubai. With more ultra-high net worth individuals (UNHNWIs) moving to the UAE, we expect stable growth in the prime and luxury segment. Encouraged by UAE's positive economic indicators, buyers are finding property investments a safe hedge against high inflation. We expect demand to continue along similar lines into Q3 2022," said Chris Whitehead, managing partner of Luxhabitat – Sotheby's International Realty.
The latest Savills Prime Residential Index results showed Dubai ranked fourth for prime residential capital growth in the first half of 2022. The emirate was the only city in the top five list which is dominated by US cities.
The emirate is also expected to attract 4,000 millionaires this year, which will help maintain the demand for high-end property.
According to Luxhabitat Sotheby's, the top areas in terms of transactions were Palm Jumeirah, Dubai Hills, MBR City District One, Umm Suqeim 3, Jumeirah Bay and Emirates Hills.
The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Jumeira Bay and Palm Jumeirah.
"In recent months, we are seeing investors from UK, India and Germany driving demand, with many of our buyers looking for ready properties and branded addresses," says George Azar, CEO at Luxhabitat Sotheby's International Realty.
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The data showed that Dubai Marina, and Downtown Jumeirah Islands sales almost doubled to Dh1.75 billion, Dh4.8 billion and Dh402 million.
In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown (Dh4.8 billion), Palm Jumeirah (Dh3.7 billion), and Business Bay (Dh2.2 billion) as demand for apartments outstripped that for villas, both in the overall and the prime sector.
source-www.khaleejtimes.com
Back when the freehold phenomena started in Dubai in June of 2002, investors who bought and held initial offerings by master-developers experienced capital gains of between 3.5-5x over a six-year period when prices peaked in 2008.
This applied to two-bedroom Springs townhouses, Greens (one- and two-bedroom apartments), Meadows (three-bedroom villas), Palm Jumeriah (Shoreline’s one- and two-bedroom apartments), Jumeirah Islands (four-bedroom villas) and International City (studios and one-bedrooms).
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Since then, through two subsequent boom and bust cycles, these investors experienced between 80-100 per cent of their returns through rental yields, an astounding statistic whichever way you look at it. Remember that for most real estate assets in Dubai, the 2008 levels have not yet been re-achieved.
Solid rental returns
In other words, over the last decade, the ones that have made the money in real estate have done so through rental yields and the principle of compounding (a boring maxim to be sure, but a truism nonetheless). Despite a multitude of new offerings, and the exuberance of intermediaries who urged investors to time the markets, these initial capital gains were followed by more than a decade of rental yields.
As the market matured and end-users dominated the landscape, investors started having less of an impact on the overall direction of market. Nonetheless, the structure of overall returns remained dominantly skewed in favor of cashflow annuity type streams. The results were compiled using data points from over 150 units, where returns were measured from sale prices; rents were measured as actual rents received as opposed to contractual rents; and costs were measured as the summation of service charges plus actual maintenance done within the units.
This kind of granularity is similar to the rigor of the studies conducted in London, New York and Berlin over a 40-year time frame and published in various academic journals. What are we to make of this?
The studies point to three fundamental conclusions:
* Returns in residential real estate are highly volatile, where periods of capital gains are followed by periods of low to even negative returns.
• Capital gains are often exaggerated on average for they do not account for individualized quality differentials in a heterogenous market (when scrutinized, actual capital gains are lower by as much as 33 per cent from the reported stats that feed into index data).
• Over time, rental returns comprise the dominant portion of the total returns for the buy-and-hold investor.
Whatever data that we can get ahold of from any developed market points to the exact same result: rental yields comprise for more than half of overall returns realized in a 10-15 year (and more) timeframe. Compare that to the prevailing zeitgeist where the dominant paradigm has been one of trading in and out, essentially adding to transaction costs (which over time devour as much as half of the overall returns in a portfolio churned over once every five years).
Wealth and excess have a blinding effect on psychology, and they certainly do so even more in the age of social media where the latest record-breaking transaction is reported with a sense of rapturous wonder. It has been this churn mentality that has permeated the investing culture, with most having fallen prey to this mind warp.
Time factor
However, it is prudent to remember that wealth accrues over time, and that regardless of the lure of timing the markets, very few end up on the winning side. Where the opportunity cost of capital is next to nothing (an elongated period of zero interest rates), asset values may get distorted and send the wrong signals. But gravity does exert its pull eventually and when it does, it is always the patient investor that stands out.
Dubai real estate data fundamentally attests to this, and turns the investment decision-making on its head. Capital is to be invested prudently and patiently, with long-term horizons firmly in mind.
In time, someone will develop a name for the era of zero interest rates and the greedfest that came along with it. For now, all we can be sure of is something that we have always known: In investments and capital allocation, the best form of work is to be a respirateur (to breathe) in order to be far from the madding crowd.
source-gulfnews.com
Through the years, we have witnessed Dubai introduce a string of initiatives, encompassing simplified financing, low mortgage rates, and swift enactment of policies to further its dynamic economy.
Its leadership also played a pivotal role during the outbreak of the pandemic by setting prudent examples of how a global powerhouse can navigate dire challenges and protect the gains of its economy and the interests of stakeholders - which include local and international companies, SMEs, and homegrown enterprises - and paving the way for them to catapult their businesses to greater heights.
We saw overseas buyers flocking into the city to invest in the real estate market while resident-renters became first-time homeowners. This trend stemmed from a broad spectrum of benefits to trade, tech advancements, safety, and healthcare, which, in unison with the robust macroeconomic fundamentals, consolidated the emirate’s position as a global hub for businesses and tourism that never ceases to amaze.
That said, the latest expansion of the Golden Visa coverage will play a fundamental role in attracting overseas buyers and spurring demand for real estate projects.
A consumer-centric transformation
Understanding the shifting demographics related to global social and economic transformations help us make sense of the world we live in. The rise in migrations is indicative of a global economic resurgence and disproportionate rise in economic opportunities across competing geographies.
Capitalising on the rise in migration and talent-driven economic development, the UAE introduced a Golden Visa scheme for a wide array of exceptional individuals who meet certain eligibility parameters. The new visa scheme strengthens the UAE’s position as an ideal destination to live, work, and invest in.
With the surge in demand from property investors and resident homeowners, the Golden Visa scheme has been expanded to cover those who invest or purchase a secondary or off-plan property for Dh2 million.
The recently updated 10-year UAE Golden Visa regulations are a fantastic initiative to stimulate real estate investment even further, especially with the flexibility associated with the new rules, all of which will prompt residents as well as overseas RoI-chasing ‘hunters’ to invest in the country for the long term and allow non-residents to make the UAE their second home.
Facts behind the figures
The real estate market is at the outset of a pronounced upward trajectory. The market is still considered a buyers’ market, with undervalued real estate and prices in Dubai being more attractive than in other large metropolises.
Match buyer expectations to budgets
Affordability is a driving force to furthering the real estate market, according to the results of a poll conducted by Reuters. Housing prices in Dubai are expected to rise steadily over the next two years, driven by demand from foreign investors attracted to depressed prices of properties.
However, analysts caution that higher interest rates and a lack of affordable homes might curb the volume of deals to some extent. In terms of transaction volumes, Dubai’s real estate market recorded over Dh170 billion from January to June 2022. Sentiments in Dubai’s real estate sector have remained optimistic and reached an all-time high owing to new visa-related initiatives and regulations to attract foreign direct investments. A resultant surge in transaction values and volume in terms of rent and property sales is expected to continue momentum till the end of year.
Accept lower mortgage growth
We expect slower growth in mortgage transaction volumes due to interest rate hikes, which will be partly offset by favorable payment plans. While geopolitical tension is a primary risk, we expect Dubai will attract interest as a safe haven for wealthy individuals to establish their footprint.
Additionally, the supply-demand dynamics in Dubai’s real estate market has transformed significantly compared to how it used to be. This is largely due to the right kinds of units being offered, in terms of location, connectivity, amenities, build quality, and scenic views, which are seeing substantial demand and are selling out rapidly, despite the notion of oversupply.
Moreover, environmental, social, and governance standards will play an instrumental role in investment and purchasing decisions in the immediate future. Dubai’s gains in the transparency ranking, led by new regulations around market-leading practices, beneficial ownership tracking and sustainability reporting, and enhanced digital services will redefine the market and attract overseas buyers as well as new purchasing behavior patterns.
source-www.reuters.com
