The Current State of Real Estate In Dubai
Real estate investing has always been active in Dubai, drawing investors from all over the globe. In fact, Dubai has emerged as a top location for those seeking to invest in the real estate market thanks to its thriving economy, advantageous location, and top-notch infrastructure. The real estate market has been through many changes during the past few years. In our article today, we will delve deeper into these changes and explore the ins and outs of the market in more detail.
The Changes in Prices of Properties in Recent Years
After the fall of the prices of property during the pandemic, the market begins to recover again and the prices started to rise.
- The DLD reported that in the first half of 2021, real estate transactions in Dubai totalled AED 113 billion (roughly USD 31 billion), a 44.8% increase from the corresponding time in 2020.
- In the first half of 2021 compared to the same period in 2020, prices for apartments and villas in popular areas of Dubai, such as Downtown Dubai, Dubai Marina, and Palm Jumeirah, have either stayed stable or slightly increased.
- After a record year in 2022, when the total number of units sold increased by more than 60%, residential property prices in Dubai are anticipated to rise more slowly in 2023, according to Richard Waind, the Group Managing Director of Betterhomes, one of the largest real estate consultancies in Dubai.
- After rising by 11% in 2022, experts anticipate prices to increase by about 5% in 2023. From the 21% rise seen in 2021, this increase in 2022 was a slowdown. As a result, even though costs are anticipated to increase in 2023, the rate of growth is anticipated to be slower than in previous years.
Factors That Led To Such Changes
Increase in both demand and supply
We can notice how more and more buildings are added to the landscape of Dubai. This has led to increased availability, thus leading the prices to drop a little bit. However, the demand for real estate in Dubai has stayed largely stable. As a desirable location for real estate investment, Dubai’s continuities attract tenants and investors especially given its strategic position, first-rate infrastructure, and investor-friendly policies.
In order to protect both the interest of the buyers and the sellers, the Dubai Land Department has issued several regulations. The main aim of such regulations is to increase transparency, ensure the stability of the market, and encourage more investors to enter it. Such regulations helped the need to grow and flourish.
Recovery from the pandemic
Like other regions of the globe, Dubai’s real estate market was significantly impacted by the COVID-19 epidemic. During that time, many people were hesitant to engage in real estate. This decline in demand caused the rates for real estate to decrease. Yet, the demand for real estate in Dubai began to increase again as the pandemic subsided and the economy started to revive. Property costs have increased as a result of this once more.
To sum it all up, there have been a lot of adjustments in the Dubai real estate market recently. Although the epidemic temporarily reduced demand and costs, the market has since bounced back and is now booming. The market is anticipated to expand further in the upcoming years due to government efforts, rising demand and supply, and favourable laws. Dubai continues to be a top location for real estate acquisition thanks to its advantageous position, first-rate infrastructure, and investor-friendly policies. Are you planning to invest in the real estate market in Dubai? Why? Why not? Share your answers in the comment section below. We cannot wait to hear from you all.