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The Dubai property market is slowly recovering from the crisis. In just 6 months of 2021, the total volume of transactions in the Arab housing sector increased by 74% compared to the same period in 2020. The website https://emirates.estate/ will tell you more about the current situation in Dubai and the future prospects of the market.
Favorable changes in Dubai property market
According to analysts’ reports, the Dubai property sector is recovering thanks to extreme price and sales spikes in the first half of the year. The increase in the cost for 6 months of 2021 was 113%, which directly reflects the increase in the cost of apartments in Dubai.
The incentive for buyers was the qualified policy of the UAE government, in particular, attractive schemes for obtaining resident visas for entrepreneurs, investors and professionals. In addition, a number of programs were launched to support businessmen and the private sector.
Measures to combat COVID-19 have also played an important role in the country. The Dubai Expo-2020 event, which will be held in the second half of 2021, also helped to warm up buyers’ interest in buying apartments in Dubai. All this inspires confidence in the future and gives hope for maintaining a positive development rates in the remaining half of the year.
Some statistics about property for sale in Dubai:
- Transactions with already built houses – 72% of the total number of deals;
- Transactions with off-plan housing – 28%;
- Increase in the price for 1 sq. m. of housing by 10%;
- Prices for ready-made housing increased by 8.7%;
- The fall in the cost of flats in Dubai during construction by 9.5%.
Comprehensive recovery of Dubai market in all directions
The market development is uneven. Nevertheless, it is fixed in all segments. For example, the number of sales of built houses and apartments in Dubai increased by 40% compared to the figures of 2020. Villas and townhouses were the most popular with buyers – their sales rose by a record 231%.
Well-known districts in Dubai are:
- Arabian Ranches;
- Dubai Hills;
- The Springs;
- Nad Al Sheba;
- Palm Jumeirah;
- Green Community.
They attracted 30% of the attention of consumer demand. The most impressive indicator was recorded in the Town Square, the total number of transactions in which rose by 800% compared to the first quarter of 2020. In property in Palm Jumeirah, sales grew almost 4 times.
Rising housing costs
Real estate in the UAE in the first half of 2021 canceled the fall in prices for 5 years. In the period from January to March, prices gradually increased, thereby signaling positive changes.
A program aimed at supporting the population and businesses during the pandemic has been launched in the UAE. This program also included visa programs for citizens of pensionable age and entrepreneurs. A master plan for the development of Dubai until 2040 was also adopted in the country. The strategy of the plan involves the transformation of the emirate and turning it into the best place in the world for living and business. Now these measures are being actively implemented in practice and are already bearing fruit.
Prospects for a rent freeze
The Dubai government considers the decision to “freeze” the rent for a period of 3 years as a means of optimizing the rental market, ensuring stable and predictable conditions for all its participants.
This practice was already used in Sharjah in 2007. A law on housing rental rates was adopted here. According to this law, owners are prohibited from increasing the rental price for 3 years from the date of signing the contract with the tenant.
Making housing deals remotely
The introduction of online home purchases has had a positive impact on sales growth. Although making investment property deals in Dubai remotely is not a new practice, nevertheless, during the pandemic, it was possible to develop its potential. Over the period of the lockdown, when people could not visit another country, agents actively broadcast Dubai properties online, negotiations with owners and concluding transactions. It was a true salvation.
Let’s take a closer look at the advantages of this format:
- You do not need to be physically present in the country where you plan to buy a house;
- There is no need to go to the properties yourself – an agent travels everywhere. He conducts detailed reviews and broadcasts what is happening from the place;
- Negotiations with the agent, owner/developer are done using a video conference at the ideal time and in a convenient place for you;
- The transaction completes much faster;
- Property purchase is carried out at any time and in a convenient place for you;
- No additional financial expenses: you do not need to pay an interpreter, spend money on a flight, etc. Your agency performs all the functions necessary for the successful conclusion of the transaction.
Investment growth in Dubai housing market
Investment activity in Dubai is already at a high level, but in the near future, according to analysts, it will continue to grow. Despite this, it is still too early for investors to be afraid of competition. During the quarantine, there was an outflow of tenants, but despite this fact of growth in the Dubai property market for the first time in 7 years, we should not expect a lull. With the opening of the borders in the emirates, there is an active influx of citizens from abroad, as well as active vaccination has also had a positive impact on buying and renting real estate in the UAE.
Emirates.Estate helps customers buy the right property in Dubai
The Dubai housing market will grow until the end of 2021. This will be possible thanks to the government’s activities and special measures, visa reforms, a successful vaccination program and low mortgage rates.
If you want to buy a house in the UAE, the Emirates.Estate will help you find the right property and buy it from a reliable seller. Buying investment flats in Dubai for foreigners requires special attention from the legal system of the UAE. If you want to know all the specific information, you can contact one of the Emirates.Estate expert for free.