Real estate buyers are present in the high-income brackets in the UAE and other countries, making it a good idea to invest your capital wisely in this type of portfolio.
Entrepreneurs looking for an attractive country to invest and live will find many opportunities in the United Arab Emirates. The increased demand has helped solve the property market crisis.
With a sudden opening of borders, wealthy investors were able to see up close the high standard of living in the UAE. And as a result, this led to an increase in luxury housing sales.
The 2021 Dubai Property Market
Business has been booming in UAE property sales with a total of 52,415 people acquiring 72,207 new properties. In the year 2021 alone, 84,772 transactions were made worth AED 300 billion.
According to the annual transaction report issued by the Dubai Land Department, there was a 65% growth in the number of property transactions and a 71% increase in value last year.
The positive impact of the global pandemic is being seen in improving the quality of life, as well as economic viability. The UAE proves that they are able to overcome the C0VID-19 virus with demonstrations of crime reduction, trade activity and investment increasing exponentially. This also leads to improvements in amenities, employment and monetary values now attracting international investors.
In 2021, Dubai Marina recorded the highest transaction value at over AED 28.6 billion, followed by Palm Jumeirah (AED 26.6 billion).
What market changes will we experience during 2022?
Experts believe the boom in the real estate market will continue in 2022. And the secret to real estate’s success lies in these same reasons for its success during 2021.
During the total previous year, property sales totaled 177 billion AED – an 88% increase since 2020. For sellers, prices are on an upward trajectory - which means that sellers can sell their property without giving buyers a discount.
With the upward trend in real estate values, experts say more records will be set this year. The combination of three factors leads to an increase in this growth:
Limited new project proposals
Affordable mortgage rates
Foreign investments
With the collapse of other economies, Dubai is a favorable environment for expats and wealthy individuals alike. The government has reformed process in order to offer simpler move and residence permit processes.
Trends that has been taking place in the property sector from 2022
The Dubai Land Department reported that real estate transactions at the beginning of 2022 were worth USD 698 million in just one day. That was not all though! There have been 227 sales transactions that have a total value of nearly $2 billion for the first week of 2022.
On the first working day, 12 transactions of the sale of land plots were concluded. The total value was USD 451 million.
161 transactions for villas and apartments (USD 530 million in total) have been done since the start of the year.
The Palm Jumeirah has seen the largest sale in Dubai for USD 136 million. In second place was the Dubai Marina, which sold for uSD 134 million. Finally, the third-largest transaction was closed in Dubai Marina, at USD 109 million.
The Jebel Ali First zone had the most transactions in the first week, with 23 and a total of USD 4.9 million in payments. It's followed by the business Bay area, which had 21 transactions totaling USD 6.81 million in value, but with less individuals involved.
The perfect time to buy a Dubai property in 2022
The million-dollar question many investors are faced with is: when is the best time to invest? For the first time since 2016 because of strengthening predictions, developers have no problems launching multi-unit high buildings. What separates these companies is that they design buildings that are well-thought out, different then the rest, to last and assure professionals buy into these investments.
Experts agree: waiting can only hurt with investment in premium property. Prices have stabilized, but just be prepared because they’re poised and continue to go up. Remember that among other things, Expo 2020 is expected to increase prices according to the report in this segment.