When people hear Dubai’s name: they associate it with vacations, holidays, and a place where you can find all the fun things to enjoy! In reality, the location is more than just a tourist’s playground. Dubai is also the central hub for many business activities and real estate dealerships.
The real estate market of Dubai is one of the most vibrant sectors to invest in for locals and ex-pats. The best part of the city is its blossoming ground of opportunity for property sale, rent, and the business of construction. Over the years, their market and potential for growth have only gone up and continue to gradually excel to this day.
Dubai’s Real Estate market has had a long journey from the times their annual sales were at their peak towards a staunch decline of sales and rental properties during the aftereffects of the Covid’19 pandemic. According to many reports, it is evident that between the third quarter of 2018 and 2019, the average residential property sales prices in Dubai fell by almost 7%.
This change shifted the entire conditions of the real estate business causing a great difference in the demand for purchasing properties and the rental rate. However, the recovery from the lockdown period of Dubai proved to be quite beneficial to the real estate business. There was a sudden surge in the annual sales of the real estate market in 2020.
The following years only blessed the real estate market of Dubai by bringing amazing investors and sales due to the efforts of the government to introduce laws encouraging more purchases of property and rent. One such introduction was to the Golden visa.
The Golden Visa was a significant implementation in 2019 by the Emirates government. They strived to create a new system that aimed to increase the influx of investors into the real estate market and attract people towards living here long-term. The golden visa is a brilliant way of endorsing for talented and skillful foreigners to come to Dubai and share their product profits.
This Golden visa allows ex-pats and foreign individuals to live, work, and study in Dubai without a necessary local sponsor. The visa also guarantees complete ownership of property and business in relevant spaces, and the residential and commercial units of freehold properties also increased extensively!
The UAE’s real estate market had high growth in the fourth quarter of 2021. Dubai had its biggest month of sales on record in November 2021, with a sum of 6,989 deals totaling AED17.95 billion. In terms of transaction volumes, Dubai recorded 57,043 for 2021, a 73.6 percent raise over 2020, and a 51.6 percent increase over 2019.
Dubai’s Real Estate Market in 2022
In 2022 the rivalry in Dubai’s real estate market is said to increase in the future. Recently, the shift of the real estate market from domestic sales to foreign capital has emerged a new era of property sales in Dubai. The city is full of extravagant infrastructures and luxurious spaces for entertainment and conducts highly profitable incomes. Dubai is considered the spotlight of attractions, therefore there is a higher demand for rental properties and hotels.
Many people from all over the world come to Dubai to aid in the transformation of simple landscapes into glorious wonders that continue to lure millions. Dubai has the best hotels, eateries, and tourist spots and this enables a huge inflow of people wanting to live and grasp the emerging opportunities here. This includes citizens from all over the globe such as Europe, India, the USA, and the UK.
Currently, there is a total of approximately 200 and above nationalities in Dubai. In 2022, 85% of the population belongs to ex-pats. This big change leads to a rise in residential and commercial units in the city, and also a great number of renters. Approximately 55 % of property specialists said that the aftermath of the pandemic has generated a demand for houses, villas, and apartments of all types.
The real estate market in 2022 has proved to be beneficial for rental and property investors. It’s a bright horizon and a ripe market to buy houses or commercial units. In the future, it is estimated that the prices will go up, therefore many real estate agents stress the need to buy properties right now!
Dubai Rental Market in 2022
Dubai’s rental market is certainly only looking strong ahead of time! There is no doubt that after a storm comes the calm, and in the real estate business, this time is the steady rise from the declining prices and demand for rental units in Dubai.
As the Covid’19 impact has officially been revoked, the businesses have returned their services to normal and are thriving: this also applies to the renters in Dubai! Tourists are pouring in, commercial activities are back on the rise, and many foreigners are trying to live in Dubai, and rent properties to try their luck here!
The worldwide real estate rental industry is predicted to rise at an annual growth rate of 10.7 % from $2164.29 billion in 2021 to $2396.61 billion in 2022. The increase is mainly due to businesses reorganizing their operational processes and starting to recover from the COVID-19 influence, which had initially contributed to limiting preventive actions such as social distancing, working remotely, and the shutdown of commercial enterprises, resulting in challenges.
At a CAGR of 9.7 percent, the market is anticipated to reach $3476.58 billion in 2026. This was most visible in the luxury villa market, where prices increased by 16.5 percent year over year, with a record of 54 villas worth more than $10 million apiece sold by September 2021.
Lastly, many real estate experts claim that property is in huge demand in 2022, and houses have achieved an average of 3.8 offers at the beginning of 2021, and 3.5 offers in the last quarter of 2021. It’s the perfect time to purchase a rental property as Dubai’s rental market is making a strong comeback!
If you are in search of a brilliant real estate agency that offers a range of expert advice and amazing real estate representatives to help you pick out the best rental property in 2022 you should definitely get in touch with AZCO Real Estate Brokers LLC. It is one of the most preferred and award-winning real estate agencies in Dubai having vast experience of the working criteria of the property circles of the city.