Dubai’s real estate market has been growing since 2021. This is due to the ever-increasing demand. Developers strive to meet the needs of buyers and commission residential complexes with landscaped areas. One of them is One Palm Omniyat in Dubai. Let’s look at what housing types investors prefer to invest in and how now is the right time to buy real estate in the UAE.
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Property market in 2022
The strengthening of positions began in 2021. Today, Dubai is one of the world’s most attractive megacities. The following conditions did it:
- Developing economy and infrastructure.
- Comfortable living conditions.
- Extensive business opportunities.
- No taxes on personal income.
- Flexible immigration policy of the authorities, attracting foreign investment.
- Successful response to the pandemic.
Sales results of the first half of 2022
The Dubai Land Department reports steady growth in sales and housing value. In the first half of the year, almost 37,800 properties were commissioned. This figure is 60% higher than the results of the same period in 2021. Buyers were not confused by the significant jump in prices, which amounted to 85% since the beginning of 2021. The emirate remains investment-attractive for foreigners.
The impact of recent years on sales and prospects for the Dubai market
Experts note the relative stabilization of price growth. It became possible due to an increase in off-plan real estate offers. Investment activity is also growing. The situation in Ukraine contributed to it, which caused uncertainty in the stability of Europe. Investors seek not only to increase income but also to save money. The top 5 foreigners investing in local housing include the British, French, Italians, Indians, and Russians.
Buyers’ priorities are changing. If wealthy investors used to buy villas, now it has become popular to buy their own house with a limited budget and mortgage funds.
The pandemic has changed taste preferences. People appreciated the advantages of detached housing:
- Reduction of social contacts without compromising quality of life.
- Spacious areas for comfortable living, study and work during self-isolation.
- A land plot to avoid claustrophobia from being constantly indoors.
Developers responded to the requests of potential buyers and are implementing projects of villas and townhouses in 2022. By the end of 2024 and the beginning of 2025, about 10,000 units will be commissioned.
Apartments vs townhouses and villas
This does not mean that the apartments are sold worse. This type of housing is perfect for both permanent residence and investment. The only difference is that the increase in prices for houses and villas is the most significant, apartments have risen in price not so sharply. But everything is ambiguous. If we talk about premium real estate in prestigious areas of Dubai, you can find both villas and apartments for tens of millions of dollars. This is the main advantage of Dubai real estate: various offers are available for any budget.
Time to buy
Investors are wondering how lucky it is to buy a property right away. Of course, if you compare the prices of 2021 and now, you can see the amount of the lost profit. However, the price growth has not reached the peak of 2014. Moreover, the prospects for the first half of 2022 have been surpassed. Prices did not increase by 3-4% as predicted. In several market segments, the growth was about 20%. This trend is likely to continue. Such a price growth is associated with an excessive demand, the rise in the cost of construction, and an increase in material costs.
Experts’ forecasts are cautious, but most of them say that real estate will become more expensive in 2022 and 2023. Therefore, if you do not want to spend more, you should pick up a property right away. Off-plan projects offer you the highest savings opportunities. They can save tens of percent of the cost when buying a home or earn money after reselling it.
Buying a property in Dubai
The emirate has a broad range of housing, among which you can choose the right property both for moving to a country with a warm climate and for investment. However, the hype in the sales of off-plan projects confirms a shortage of offers. You can find detailed information about the real estate market and apartments for sale at Emirates.Estate. Experts will help you choose accommodation in any sought-after areas.
Don’t delay your decision not to miss out on the most attractive deals.