General increase in demand in the real estate market in the UAE
Trust in the United Arab Emirates makes them one of the most attractive countries for investment and living. And such an increased demand, in turn, made it possible to finally close the issue of the property market crisis.
As soon as the international borders were opened, wealthy investors were able to see for themselves the high quality of life in the UAE, as well as the successful overcoming of the pandemic. And as a result, this led to an increase in sales of elite and expensive housing.
2021 Property Market Statistics
A total of 52,415 investors acquired 72,207 new properties in the emirate. The property market recorded 84,772 transactions valued at AED 300 billion in 2021.
The emirate saw a 65% growth in the number of property transactions and a 71% increase in value last year compared to 2020, according to the annual transaction report issued by the Dubai Land Department (DLD).
Experts say that the global pandemic, so to speak, had a positive impact on the development of the United Arab Emirates. The government has proven it has effectively overcome the effects of COVID-19. While in other countries there is a decline in demand, in the UAE it continues to grow. Experts believe that in the past two years, investors prefer to invest in property, which has a large area and offers many amenities for a high standard of living. Increased demand is simultaneously combined with rising prices for premium real estate. In particular, this applies to areas such as Arabian Ranches, Palm Jumeirah, Emirates Hills.
Dubai Marina recorded the highest transaction value at over AED 28,6 billion, followed by Palm Jumeirah (AED 26,6 billion).
What Should We Expect From the Property Market in 2022?
Experts say the boom that was observed in the real estate market will continue in 2022. And the secret lies in the same reasons why the market rebounded and set new records in 2021.
Total property sales during the entire previous year were AED 177 billion, an 88% increase over the total in 2020. At the moment, housing sales prices are on an upward trajectory, which is especially important for sellers: they can sell their property at the price they specify without giving potential buyers a discount.
Forecasts from most experts show that the upward trend in real estate values will continue in 2022. Moreover, some experts say that this year new records will be set. And the reason lies in a combination of three factors:
- a limited number of proposals (especially in prestigious areas),
- low mortgage rates,
- and interest from foreign investors.
While market turmoil is expected in many countries, Dubai is a sheltered community for wealthy individuals and expatriates alike. And at the same time, the government is constantly proposing a variety of reforms that greatly simplify the process of moving to the UAE and obtaining a residence permit.
Start of 2022 in the Dubai Real Estate Sector
Already from the first working day in 2022, the real estate sector began active work. In just one day, real estate worth USD 698 million was sold. According to statistics from the Dubai Land Department, the total number of transactions was 227. At the same time, in the first week of 2022, the total value of all transactions was recorded at USD 1,97 billion.
The correlation between different types of housing should also be noted.
- On the first working day, 12 transactions of the sale of land plots were concluded (their total value was USD 451 million).
- Concerning villas and apartments, 161 transactions were concluded with them (the total value was USD 530 million).
The sale of housing on the island of Palm Jumeirah was recognized as the largest transaction – the apartments were sold for USD 136 million. Second place went to a USD 134 million deal in the prestigious Dubai Marina. The third-largest transaction in terms of the total value was also concluded here – for USD 109 million.
The largest number of transactions in the first week was recorded in the Jebel Ali First area. There were 23 payments in the area, totaling USD 4.9 million. The second place in terms of the number of payments was taken by the Business Bay area. The total value of transactions here amounted to USD 6,81 million, but their number is still less – just 21
Why Should You Buy Property in 2022
It is worth considering the additional impulses for the real estate market that were observed in 2021. Now foreigners can:
- receive 100% ownership,
- freely conduct business,
- apply for pension, green, and gold visas.
It is noteworthy that a different trend was observed last year: many tenants changed their status and became owners of a home in the UAE.
If you want to buy a home in the UAE, it is recommended not to wait for changes in the housing market. And if you are planning to buy property in Dubai, please contact the Bluechip Real Estate. We have a team of experts who will solve any problem related to the search and purchase of housing in the UAE.
