DETAILED INSIGHTS OF REAL ESTATE IN DUBAI

Over the past few years, global investors and buyers have shown interest in investing in real estate in Dubai, resulting in a surge in demand for property in the region. The prime locations of Dubai have seen strong growth as investors and end-users opted for investing in properties with more space and amenities and have a better lifestyle post-pandemic time.

This comprehensive guide will provide you invaluable insights into current market trends and changes in the Dubai real estate market and consumer preferences over the recent years. So, keep reading to know more.

Dubai Real Estate Market Overview

Real estate in Dubai has been attracting many buyers in recent years. It is mainly because of the low property prices prompted by the Covid-19 pandemic. However, the residential real estate market in Dubai slowed down because of the Covid-19 related restrictions and lockdowns that forced people to stay at home. The second half of 2020 witnessed an increase in the buyers buying the Dubai property due to a decline in prices.

Further, the Dubai residential property market is seeing an increase in new development projects with a rise in transaction value and investment in Dubai's real estate sector. The region also saw an influx of global buyers willing to invest in the region's real estate after EXPO 2020.

Potential buyers have shown their interest in reasonably-priced villas and apartments located in Akoya Oxygen, Dubailand, Jumeirah Village Circle, and Jumeirah Lake Towers. Whereas, high-end investors opt for properties in Downtown Dubai, Arabian Ranches, and Dubai Marina.

Tenants with a limited budget prefer apartments in Jumeriah Village Circle and Al Nahda and villas in Akoya Oxygen. On the other hand, tenants looking for high-end apartments are more inclined toward buying properties in Downtown Dubai and Dubai Marina.

Various factors have caused the uptick in the demand for Dubai property. According to Reuters, the UAE is the most vaccinated nation for Covid-19, while Global Finance has declared the UAE the second-safest country in the world. As a result, it has helped Dubai recover its economic activity and made the UAE an attractive investment option.

Important Market Trends

Some key market trends in Dubai real estate are as follows:

• New Development Projects

  There is a trend of several new housing projects being introduced and completed in Dubai. The residential sector saw a substantial rise in the supply of residential units year on year. The developers are focused on completing under-construction projects and launching new housing projects.

  Most new development projects were standalone towers or developments providing below 2,000 units per project. In Dubai, several projects were launched, including Seven City at Jumeirah Lake Towers launched by Seven Tides Developments, Dragon towers launched by Nakheel, Beach Vista at Waterfront launched by Emaar properties, and many more. Besides, the region's two largest real estate developers, Emaar Properties and Aldar properties got into a Joint Venture (JV) to develop projects worth AED30 Bn. These new developments allure investors and buyers looking for holiday destinations or new homes.

• Increase In Sales Of Off-Plan Housing In Dubai

  Dubai's real estate market has been witnessing an increase in sales of off-plan housing projects since 2019. In the first half of 2019, there were around 1,700 transactions in the off-plan housing sector. It shows the real estate in Dubai is gradually attracting budget-conscious people equally.

  According to Bayut & Dubizzle data, Binghatti Mirage in Jumeirah Village Circle attracted a maximum number of potential buyers for off-plan apartments, whereas, Amargo in DAMAC HILLS 2 dominates the search volumes for competitive-priced off-plan villas. For luxury off-plan apartments, Regalia by Deyaar in Business Bay is the most sought-after option, while, buyers searching for upscale off-plan villas go for DAMAC HILLS Trump Estates.

Growth in Prime Locations of Dubai

According to real estate experts, the Dubai residential properties in prime locations are in high demand and the prices will continue to grow at a steady pace in the following year. If you talk about capital gains in housing prime locations, according to ValuStrat Price Index, villas are performing better than apartments. The prices of villas are back to pre-pandemic levels, while, apartments will still take some time to reach there.

Further, there was a substantial increase in transaction volumes in some areas due to an increase in capital values and preference of people for buying bigger homes. In the past two years, the average unit size has significantly increased as buyers look for more spacious homes. The average size of a residential space sold in 2019 was 1,524 square feet, which increased to 1,905 square feet in 2020 and further scaled to 2,057 square feet.

What Factors Increase The Demand For Dubai Real Estate?

The prime areas of Dubai remain in demand because of the strategic locations, affordable rates, and modern infrastructure. Recent data showed that Business Bay, Jumeirah Village Circle, and Dubai Marina are considered the best areas for buying a residential space in Dubai. If you are looking for luxury properties in Dubai, areas like Downtown Dubai, Arabian Ranches, and Palm Jumeirah are quite popular.

People on a limited budget prefer suburban districts that offer affordable housing. Plus, localities close to the Expo 2020 site have gained the attention of buyers.

Properties situated in the well-established areas offering high-end lifestyles have also increased in demand. So whenever you are searching for real estate property in Dubai, consider factors like its location and infrastructure.

The Bottom Line

The real estate in Dubai continues seeing substantial growth in 2021 and is expected to grow in the years ahead. Dubai has been an attractive place for investors and end-users as it offers plenty of options. Whether you are looking for a luxury or a budgeted property, you will find one that aligns with your needs in this region. You may also ease the property buying process if you seek the assistance of a real estate company. These real estate companies will provide you with relevant knowledge to help you make a wise decision. So after thorough research and considering crucial factors, you may opt for investing in Dubai real estate market.