The Dubai property market has begun to recover after the pandemic. In the first three months of 2021, there was high activity, especially in the sector of houses and villas. The total number of lots sold during this time exceeded 2,200, while last year 673 transactions with individual houses were concluded during the same period.
It should be noted that the pandemic and the quarantine associated with it have provoked the emergence of new trends in the housing sector, and this applies not only to Dubai. Thus, there is an increased interest in villas, townhouses, and suburban real estate in almost all countries of the world. By the way, the developers consider the change in customer preferences to be long-term and rebuild the offer following new requests.
Housing market is recovering in all directions
Emirates.Estate emphasizes that the demand for real estate in Dubai is growing in all segments. Thus, the total number of sales in the secondary housing market for the Q1 of 2021 rose by 72% compared to the same period last year. The number of transactions with ready-made apartments increased by 40%, while sales of villas and townhouses jumped by 231%.
The growth in demand was noted in all popular areas of Dubai: Dubai Hills Estate, Arabian Ranches, The Springs, and Nad Al Sheba attracted about 30% of transactions with detached houses and townhouses. In the first quarter, so many finished houses were sold in the Nad al-Sheba area that sales became a record in history.
The number of transactions in Town Square increased by 800% compared to the first quarter of 2020, a six-fold increase in transactions was recorded in Green Community, and sales on Palm Jumeirah rose by more than 3.5 times.
Property prices are growing
As for residential prices in the first three months of this year, the downward trend observed since 2016 has been broken. Prices for apartments and houses rose moderately in January, February, and March, indicating the market’s recovery.
Housing prices in the UAE have been declining since 2014. The coronavirus pandemic has also had a bad influence, causing a crisis in the entire global economy.
However, the world has begun to adapt to a new life, the UAE has launched a vaccination program and measures of economic support for the population and business. These include visa programs for pensioners and 10-year golden visas for entrepreneurs. In addition, a master plan for the development of Dubai until 2040 was adopted, according to which the city should become the best place in the world to live. These ambitious plans of the emirate’s leadership, which, by the way, are supported by concrete actions, are already being implemented in practice.
Rent payment in Dubai can be “frozen”
In Dubai, one more measure may be introduced by the state to regulate the real estate market. The Land Department of the emirate is considering the possibility of introducing a moratorium on rent for three years from the date of signing the contract by the tenant. The authorities plan to restore order in the rental market in this way, providing stable and predictable conditions for participants.
Dubai will not be the first on this path: in 2007, a law on setting rental rates was adopted in Sharjah. It prohibits the owners from raising the rent for three years from the date of the conclusion of a new contract. Moreover, the annual rent increase was limited to 5% in Abu Dhabi.
Investment activity is growing
At the same time, housing customers who are considering buying apartments in Dubai for investment should not be afraid of these measures. The outflow of tenants brings more negativity, which was observed during the quarantine. However, judging by the fact that for the first time in seven years, real estate prices in the emirate have begun to grow, Emirates. The estate should not expect a lull in the market. The influx of investors from abroad to Dubai has not stopped. The housing sector will come out of stagnation, and the pent-up demand will be realized with the opening of borders and the current vaccination campaign.
Despite the growth of housing prices in Dubai and high demand in the first quarter of 2021, it is still too early to predict the long-term outlook for price growth in Dubai. Emirates.Estate advises you to be very careful when choosing an investment object and consult with market professionals.
If necessary, the property can be sold by returning the invested money. If the prices on the market rise, you will earn on resale. Of course, we cannot exclude the possibility that the value of housing may decrease on the contrary. But such a risk exists when buying any property.
Investors, businessmen, and specialists can now apply for a 10-year resident visa. In addition, foreigners can now freely own and operate businesses outside of the free economic zones of the emirate. (Previously, business ownership was allowed only in free economic zones throughout the country).
Emirates.Estate will help you buy property for investments in Dubai
Dubai is the most developed emirate in the UAE. This is a place of luxury life: skyscrapers cutting through the sky, sports cars, magnificent sea views, various tourist attractions, 5-star hotels, stunning architecture, and rich life. Some of us can only see it in a dream, but there are those who can make it their reality. The desert is becoming the pearl of the Arab countries – you can live there or just make a good investment with a high profit. The specialists of Emirates.Estate will help you choose the property you need and fulfill all the necessary requirements for a successful transaction.
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