Dubai’s property market has been booming in the past few years, and it is set to remain strong in the coming year. Property prices have risen by more than 20 per cent in the last 12 months alone, and a new report predicts that the emirate will continue to be one of the most sought-after real estate markets. The latest survey by Savills, the international property consultancy, ranks Dubai as the third best property market behind London and New York.
This means there will be a lot of new homes being built over the next few years. As the UAE’s third-largest city by population, it is home to an incredibly diverse range of people. It is also one of the country’s wealthiest cities, making it one of the best places to invest your money. Dubai’s property market is growing at a tremendous rate as highlighted in the real estate market report of LuxuryProperty.com, so it makes sense that it has evolved into one of the most famous cities for people to live in.
What is driving Dubai’s property market?
Dubai’s property market has been driven by strong economic growth in the UAE and globally and the region’s favourable demographics and high per capita income levels. According to Knight Frank, a leading global property consultancy, Dubai has the highest number of millionaires per square kilometre globally.
Furthermore, Dubai has become the most popular tourist destination in the Middle East and is a central international hub for trade and logistics.
As a result, of Dubai Expo 2020 hosting, Dubai attracted more than 60 million visitors. The Expo will further boost Dubai’s tourism industry, creating thousands of jobs for Emiratis.
As such, the country is experiencing a significant inflow of wealth, with many foreign investors looking for the opportunity to purchase property in Dubai.
Who are the most common purchasers?
Interestingly, Dubai has seen a surge in homebuyers, mainly the ultra-high net worth (UHNW) population. A survey carried out by Dubai Land Department (DLD) found that the percentage of home purchases by UHNW individuals has increased by 50% between 2021 and 2022.
The DLD’s report also found that the most popular city for UHNW investors to invest in is Dubai, followed by Abu Dhabi.
How is Dubai’s property market expected to develop over the next few years?
According to market research, Dubai’s property market is forecast to continue its upward trend in the coming years. The firm predicts that the market will increase by more than 30% in value terms by 2022.
Dubai’s property market is expected to gain momentum because of its steady economic growth, healthy demand, supply balance, and low-interest rates.
How is Dubai’s property market expected to develop in 2022?
Dubai’s property market is expected to increase in value between 2021 and 2022. The UAE’s capital has seen an increase in home prices over the past four years, with average home prices rising by 16 percent, according to new data from the Royal Institution of Chartered Surveyors (RICS).
RICS found that UAE properties are likely to decline in value despite the price rise. The average price of property dropped by 4.1 percent to Dh9,037 ($2,380) in the year to August, according to the latest figures from RICS.
According to the real estate service, this is the lowest valuation for the region since the property market reached its peak in 2007.
Property values in the UAE are still well below the 2008 peak, primarily driven by global liquidity. The UAE’s real estate market peaked at $90 billion in 2008 but has since fallen to less than half that amount, said Stephen Jones, a property expert at RICS.
“Over the last four years, the market has recovered but not quite to the levels we saw in 2008,” he added.
Jones said that prices had risen steadily since 2016, and Dubai has become one of the hottest property markets in the world. He attributed the rise to the introduction of several significant developments and the creation of a healthy secondary market.
“The market is now beginning to take shape, with the number of properties on the market and sales volumes increasing significantly,” he added.
The UAE is considered home to many of the world’s richest men and women, many of them having luxury homes in Dubai. In recent years, many billionaires have invested heavily in the emirate’s real estate market, including Russian businessmen and US tycoons.
Many wealthy individuals and families are believed to have sold up their homes in London and New York to move to Dubai.
There are still many opportunities for growth in Dubai’s property market. He added that this is particularly the case in the luxury sector, where the highest price points are concentrated.
He said that while sales in the UAE have increased by more than 40 percent over the past three years, they remain below the five-year average.
The luxury market is growing much faster than the rest of the market. However, there is a lack of supply in this market segment.
Is it a good time to buy property in Dubai
There is the best time now to invest in property in Dubai. The UAE has become one of the most popular destinations worldwide due to its high quality of life. For expats planning to live in the Middle East, Dubai is the best place to do so. The city has been ranked as the third best place to live globally by CNN Money and is considered the “city of gold”.
As the saying goes, “Buy low, sell high”. But is it a good time to buy property in Dubai? What are the risks involved? How can you make sure you get the best deal? These are some of the questions that many have asked people over the years.
Buying property in Dubai is a huge investment and can be a great way to diversify your investments. However, it’s recommended to have your research and find a reliable real estate agent before you begin searching for a property.
Although the Dubai property market is predicted to grow strongly in the next few years, the main factor that will determine the future is whether or not a buyer will choose to invest in a villa over a flat in the city of Dubai. With that being said, it is crucial to understand how Dubai’s property market will develop over the coming years to decide whether investing in a villa is the best choice for you.
