Dubai, the most economically and technologically successful of all emirates, demonstrates extreme growth in the real estate market in 2021-2022. In the first quarter of 2022, total sales in Dubai reached 17,896. in March 2022, the annual increase in housing prices was 15.3%.
Price increases have been recorded for 14 consecutive months.
The reasons for this are a number of factors, including.
Good economic conditions in Dubai and the UAE against the backdrop of global political instability.
Changed and simplified visa policy for foreign nationals.
Lowering the minimum cost of purchasing real estate to obtain a long-term residence visa.
Allowing foreigners to open businesses in the UAE without the need to attract Arab sponsors.
This has brought a safe and profitable economic haven to the UAE and expanded the audience of foreign real estate buyers.
Market statistics for 2021
In 2021, Dubai recorded 84,772 property transactions. 52,415 were carried out by investors. Total cash sales amounted to Dh300 billion ($81.6 billion; ¥543 billion).
According to the Dubai Land Department's (DLD) annual report, the emirate saw a 65% increase in real estate transactions in 2021, and a 71% increase in property values compared to 2020.
Despite the consequences of the pandemic, the United Arab Emirates continues to grow. The government has proven its effectiveness in combating COVID-19 and its aftermath. While housing demand is declining in other countries, it continues to rise in the UAE.
Experts say that in the last two years, investors are more willing to invest in real estate because of the large range of properties that offer many amenities to ensure a high standard of living, for example, villas in Dubai. The increase in demand has pushed up the prices of prime real estate, especially in the Palm Jumeirah and Emirates Hills.
In 2022, the main group of home buyers in the region will be European citizens. Wealthy Europeans, spurred on by the unstable geopolitical situation in Europe, are looking for a profitable and reliable place to invest and have found it in the UAE.
In the first quarter of 2022, more than 20,000 of the 26,000 real estate transactions in Dubai were residential properties. During this period, there was a sharp rise in the business activity index due to the influx of new investors into the emirate's small and medium-sized business sector.
Due to the increase in demand, the supply in the market was rapidly decreasing and prices were rising. For this reason, buyers focused their attention on the secondary market, where there is enough readily available real estate at lower prices than stylish new construction.
In the second quarter of 2022, secondary transactions accounted for 58% of total residential real estate transactions, with the remaining 42% of sales registered in the primary market.
At the same time, domestic demand for the most expensive luxury housing is increasing. More and more foreign nationals are looking to buy villas and apartments in new luxury projects in Dubai.
