Unexpected Rise in Dubai Real Estate Market Till New Year
- Divya Sharma
- June 24, 2023
News, Property in Dubai
Dubai and Abu Dhabi are the two most important property markets in the UAE, attracting billions of dollars of foreign investment each year. As confidence in both cities rises, it is expected that their real estate markets will continue to grow strongly.
The UAE real estate market experienced a remarkable growth this year as the global investors reposed trust in the emirate's successful strategy against the Covid-19 pandemic, consistent economic policies, excellent infrastructure, visa and business reforms by investing more in the property sector. The emirate has attracted more than Dh170 billion investment in the Dubai real estate sector during the first seven months of this year and there is no slowdown in growth momentum despite government efforts to cool down the sector. Dubai's real estate sector continues its upward trend and is expected to gain further momentum in months to come on rising demand for luxury villas as well as apartments and townhouses in prime locations.
The Dubai property market recorded more than 43,000 Dubai real estate transactions worth $115 billion during the first half of 2022. These remarkable figures show an increase of up to 87 per cent as compared to the first half of the preceding year. June 2022, in particular, proved to be a record-breaking month with nearly 8,900 sales transactions. The combined value of these transactions was recorded to be $22.75 billion.
Foreign investment driving the property market
Dubai and Abu Dhabi have become hot spots for foreign investment in UAE real estate. Russia, Ukraine and the UK are among the top countries investing in these markets. Besides that, India, Pakistan, Canada, Italy and France have also made significant investments in both emirates. Investor-friendly policies and a strong resilience against global recession are two major reasons attracting foreign investors along with high net worth individuals to these property markets.
Reformed visa rules
The UAE has modified its visa rules to make investing in the country's property markets easier. These modifications have made it comparatively easier for investors to obtain a gold or silver visa since the conditions set for these visa types have been relaxed.
The expo effect
The Expo 2020 opened its doors for visitors when the entire world was reeling from the effects of the novel coronavirus, but Dubai set an unprecedented example by successfully hosting it. As we all know, Expo 2020's success benefited other emirates and sectors as well. The successful management of this event showed global investors' confidence in Dubai. It's been almost six months since Expo 2020 dropped its curtains; yet, Dubai continues to benefit from this marquee event. And now that Expo City is set to welcome residents and businessmen a couple of months from now, a boost in the real estate sector can be expected. For those who aren't familiar with it, this new mini-city in Dubai will be located right where Expo 2020 was held.
New property advertisement guidelines
In an effort to make property investing in Dubai safer for everyone, DLD recently issued new regulations for property advertising. While this is a positive step, many believe it will hurt the performance of the real estate market. I believe this initiative will actually strengthen the market's position as a place where people can invest and even use their homes. legitimate inquiries will be received by those portals that have been proven to convert them into sales transactions.