2021 DUBAI PROPERTY MARKET HIGHLIGHTS

In today’s ever-changing world of real estate, it is highly important to know about all the latest happenings. If you are buying property for investment purposes or for your personal needs you should know the latest trends and statistics of the Real-estate market of your area.

To help you to have an idea of the Dubai property market before you invest your money we have listed down real estate market highlights of 2021 in the United Arab Emirates.

According to the Reuters poll of property analysis, in December 2021, the house prices in the Dubai Property market of 2021 will be extending their rise for the year 2022 twice as much as the rate which was expected 3 months ago. This is due to the demand of foreign investors and improving affordability. As the result of the successful roll-out of vaccination and the rising of covid 19 restrictions, the economy of Dubai Property Market 2021 has bounced back sharply this year due to the opening of trade and travel sectors, which provided help to the previous declining real estate sector. Monthly records from the Dubai Land Department confirmed the metropolis state's belongings area had its first-rate October in 8 years, attracting a handsome Dh.13.12 billion in investments spread over 5,352 deals. The Reuters poll of 11 property market analysts confirmed an average upward push of 5.0% in the Dubai property market’s residence fees in 2022, two times the 2.5% forecast 3 months ago. House fees have been additionally anticipated to upward push 5.0% in 2023.

The fulfillment of Dubai's preliminary COVID-19 response, strengthened using the pace of the UAE's vaccine rollout, has positioned the Dubai property market as the simplest predominant international metropolis to stay in large part restriction-unfastened over 2021. The resulting stability, complemented with the aid of using current visa reforms, relatively appealing pricing, and the emirate's standard quality of life, has endured attracting new residents. With Dubai probably to look sustained monetary enhancements over 2022, its miles predicted that the global call for will stay a robust subsequent year.

The Real Estate Market of Dubai:

The Average property costs in Dubai’s real estate market improved by almost 17 percent at some point in 2021, an annual price increase now no longer visible since 2014. The ValuStrat Price Index witnessed a month-to-month capital increase for villas within the Dubai property market, of 2.5%, with residences registering an increase of just under 1%.

Due to the Boom and the rise in the deals incurred in the Dubai real estate market, Dubai hopes that the current 64000 housing units would be sprung up in the future and it would be the highest number of completions since the recession of 2009. This would keep the property in the Dubai estate market affordable with an ample amount of supplies hence making it the best time to invest in Dubai’s estate market. An investor who is looking for a way to grow his portfolio and earn a fixed income sideways on their investment with a short-term return from 8 to 15% can benefit from investment in this real estate. Another benefit for the investor is that being a well maintained real estate it is very easy to sell the asset.

Increasing Demand:

The rental demand has also boosted demand in the Dubai property market in 2021 with the tenants seeking larger spaces for themselves and their families. This brought a positive impact on the rental costs for the single-family homes where the rent has increased by 15%, however, the apartments are losing their value by 3%. According to recent Dubai property news, the end-users drove the Dubai housing market in 2021 with the record mortgage transactions of AED127.82 billion strongly suggesting that most buyers were buying homes for their use.

This marks the best-ever quarter for Dubai mortgage-backed property sales. The highest number of mortgage deals so far came in 2017, and the 2021 balance sheet of Dh127.82 billion is 26% more than that year. In 2020, the UAE Central Bank lowered the down payment which was required for first-time buyers in the UAE from 5% to 20% for non-UAE citizens and 15% for first-time buyers. The change occurring in the loan to value ratio was making the difference to the first-time buyers with 83 percent of its mortgage transactions going to first-time buyers.

Also, December furnished tendencies that confirmed house owners in the Dubai real estate had been taking strategic choices in advance of the predicted upward push in loan fees from March onwards if the United States Federal Reserve decides to hike fees and UAE regulator follows suit. December usually has been a quieter month inside the loan industry yet, there had been 1,178 loan registrations in the last month, with a price of Dh10.08 billion.

Housing Market in Dubai:

While there has been some other excessive monetary downturn in 2020 due to the pandemic, there has been no monetary element to it. Banks hadn’t suffered any setbacks and have been as a result nonetheless open to lending with hobby charges in numerous markets losing to the bottom they’ve ever been. Low domestic charges and easily available lending alternatives collided to create an effervescent volcano and demand for properties had erupted, unleashing a lava float that the supply couldn’t fulfill. Investors had a prevailing proposition on their hands.

Anyone who sold assets whilst prices had been low may be capable of selling the property for a profit, this was something which had not been possible to achieve in the Dubai housing market for a long time. While provided with fully furnished and upgraded houses they are now at the pinnacle of the list of new potential buyers in the Dubai housing market, the reality of the problem is that any domestic priced to in shape the marketplace will promote at a better price factor than it was when it was purchased.

To sum up:

According to Dubai property news mentioned in the Gulf business, in the fiscal year 2021, the Dubai Land Department had issued 4230 real estate licenses, 1229 brokerage in the sale and purchase of property, 890 brokerages in rental property, etc. the major goal of the Dubai real estate market was to become regional and the global leaders in the real estate market and as well as in providing exceptional services to customers in all sectors. The Dubai property market is now continuing to develop legislation that will help them achieve, regulate, manage and encourage investments in the sector of real estate and would help in increasing the knowledge of the culture of the real estate market in the Emirates.

Furthermore, if you want valuable advice from experts in Dubai regarding the trends of the property market you can get in touch with Inspire real estate, one of the prestigious real estate companies in Dubai’s Business Bay.