How Real Estate Investing Works in Dubai - 2022

How Real Estate Investing Works in Dubai - 2022

Investors are fascinated by visa reform, new rules on 100% corporate ownership, and successful vaccination campaigns, among other government-led initiatives.


Investors are fascinated by visa reform, new rules on 100% corporate ownership, and successful vaccination campaigns, among other government-led initiatives. Don't forget Expo 2020, which has been visited by over 6.3 million visitors since it was held in October 2021, according to the Gulf Business.

Real estate investment looks rosy in 2022 as well, due to the promising outlook. Let's look at future trends and forecasts from leading experts on what to expect from the future of Dubai's real estate investing & property investment sector.

PROPERTY INVESTMENT TRENDS IN 2022
Residential property prices in Dubai ranged from $1,021 ($277) per square foot in January to $1,235 ($336.28) per square foot in October, as per Knight Frank. Since the announcement of Expo 2020 in the third quarter of 2013 for the first 10 months of the year 2021, it rose by 21%. Sales on MoM continue to be active, 7,000, equivalent to 17.9 billion AED ($4.9 billion). 

The eternal impact of the World Expo is being felt and is expected to remain one of the primary drivers behind the rise of Dubai's real estate investing & property investment sector in 2022. 

This mega-event is rising great demand in residential neighborhoods such as:

  • Jumeirah Village Circle
  • Sports City
  • Business Bay
  • Barsha South
  • Properties near Al Maktoum International Airport.

LUXURY & ULTRA-LUXURY PROPERTIES
According to the latest Zoom Property Insights report, the most popular luxury areas are mentioned below and are expected to continue to drive Dubai's real estate investing & property investment sector in 2022 as well.  
  • Palm Jumeirah
  • Downtown Dubai
  • Arabian Ranch

VILLA & TOWNHOUSE PROPERTIES
Dubai's villa sector is in high demand, inspired by trends such as telecommuting and community life. Villa/townhouse prices have risen 14% since January 2020. In Dubai, villas are popular not only for buying but also for rent. The average rental price of a villa has risen by nearly 15% over the last 12 months to AED60 (US $ 17) per square foot. However, rents for this type of property are 25.00 below the last market peak in 2014. 
As DLD data shows, the top five communities by revenue are: 
  • Dubai Hills Estate
  • Palm Jumeirah
  • Emirates Living
  • Al Furjan
  • Arabian Ranch III
Whereas, Nakheel Properties has announced a redevelopment plan for  Jebel Ali Village. Meanwhile, DAMAC has announced a DAMAC lagoon community centered around a huge D-shaped flowing river.

APARTMENTS PROPERTIES
Business Bay has sold two of Dubai's most expensive apartments for $40 million ($10.89) and $37 million ($10.07). Other coverage areas for apartments are DAMAC Hills, Emirates Hills, Downtown Dubai, International City, MBR City, and Dubai Hills Estate. 

The most popular communities of apartments are:
  • Palm Jumeirah
  • Dubai Harbor
  • Downtown Dubai
  • Business Bay
  • Dubai Marina
According to Zoom Property Insights, these areas will continue to drive Dubai's real estate investing & property investment sector in 2022 as well.

SECONDARY PROPERTIES
Secondary market sales make up a much larger proportion of real estate transactions over 5 million AEDs (the US $ 1.36 million). This fact confirms that both end-users and investors are opting for more affordable unplanned development, including post-delivery payment plans. Overall, 6,919 unplanned properties were sold in the third quarter of 2021, totaling A $ 13.48 billion (the US $ 3.67 billion), the highest transaction value in eight years.
 
For QoQ, trading volume and trading value in the primary markets increased by 115% and 212%, respectively. The rapid recovery of the unplanned real estate market is due to the reaction to changing consumer tastes and the release of new projects that meet the current demands of the market. At the same time, the secondary market recorded sales of 9,590 properties in the third quarter of 2021, with its transaction volume and value increasing by 68% and 110%.

How can you profit from current real estate trends? 
Judging from the above trends, this may be a great time for investing in Dubai's real estate investing & property investment sector. We encourage you to investigate the various real estate investment options, their benefits, and the factors that may affect your potential income. 

A related solution is to hire a licensed agent who is familiar with and inside the Dubai real estate market, get in touch with our reliable realtors and let us help you choose the most profitable projects and locations for you. In addition,  our experienced realtors can help you mitigate all the risks of your purchase by explaining why investing in real estate in Dubai is a profitable investment and properly configuring your investment portfolio.
 

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