Current Situations of the Real Estate Market in Dubai
According to a Reuters survey of property experts, Dubai home prices would continue to grow at double the pace forecast three months ago, driven by demand from overseas buyers and improved affordability.
After an early COVID-19 restriction loosening, Dubai’s economy rebounded nicely this year as trade and tourism sectors freed up, boosting the previously struggling real estate industry.
The Dubai Land Department’s monthly statistics revealed that the city state’s real estate market in Dubai had its best October in eight years October, and momentum was predicted to continue into 2022.
Increases in Prices in Real Estate Market in Dubai
The median increase in the real estate market in Dubai home prices in 2022, according to the Nov. 18-Dec. 6 Reuters survey of 11 property industry experts was double the 2.5 per cent anticipated three months earlier.
A 5.0 per cent increase in house prices was also predicted for 2023.
‘Dubai has been positioned as the only major global metropolis to stay mostly restriction-free beyond 2021,’ said Chris Hobden, head of strategic consulting at Chestertons MENA, after the success of Dubai’s first COVID-19 response.
“Since then, newcomers have been drawn to the emirate because of its relative affordability, high standard of living, and recent changes to visa policies. We anticipate overseas demand to remain robust in 2019 as Dubai’s economy continues to develop through 2022.”
The majority of respondents, seven out of eleven, predicted that foreign investors would be the driving force behind the real estate market in Dubai next year. Four people decided to go with local demand.
Excess of Properties in Real Estate Market in Dubai
The once-hot real estate market has been saved by an excess of properties from prior years, which has kept prices in control. Most other major real estate markets are seeing out-of-control inflation of housing prices.
Six out of ten experts indicated that home affordability would improve or deteriorate over the next two to three years when asked if home affordability would improve.
According to Zhang Jochinke, chief operating officer of Property Monitor, “given the quick growth in property prices and the depletion of affordable and attractive inventory, a slowdown is expected.”
There is a chance of a 15%+ annual gain if prices continue to rise at their present pace.
According to a recent study of real estate experts, Dubai home prices would climb by 3.0% this year and 2.5% in 2022, respectively, up from 1.1% and 2.8% in the previous three months. According to the poll, Dubai’s residential property market will remain stable for the next several years, with just a minor increase in prices. On the one hand, this demonstrates affordability and long-term development.
It is clear that Dubai’s real estate industry has rebounded, and the market trend suggests that the sector will continue to develop for at least the next three years..” According to Shilpa DK, CEO of Arqonz.com, now is the perfect moment to buy in Dubai property since the value will continuously increase by 2023-24.
Chennai-based E-commerce website Arqonz is only focused on real estate and construction. In addition to building materials, the firm exports a wide range of other goods, including natural stones, patio furniture, and wicker furniture. According to Shilpa, Arqonz has undoubtedly profited from Dubai’s current real estate boom.
Industry’s Revival in Real Estate Market in Dubai
“We’ve seen a significant increase in our export volume over the previous 4 to 5 months, as well as an increase in inquiries. The hectic days are returning if the present trend is any indicator,” she remarked. She went on to say that Expo 2020 wasn’t the sole factor in the industry’s revival. The 2040 Master Plan and the 100 per cent ownership rule, among other improvements, are cited by her.
As a consequence of the present economic growth, Dubai expects to see 64,000 new homes shortly. According to this, the most significant level of completion since 2009 would be achieved if it holds. It’s for this reason that Dubai’s real estate is still reasonably priced even in the face of plentiful supply. If you’ve been thinking about investing in Dubai real estate, Shilpa said now is the moment.
Dubai’s favourable property investment atmosphere is bolstered by major real estate developers preparing to build new residences. One of them is the Danube Group. According to Danube Group CEO Adel Sajan, “Business is returning to pre-Covid normality,” and “we are planning to launch a lot of new projects.”