Dubai’s property market trends have been shaped by billion-dollar investments, rapid economic development, and a luxury lifestyle unlike anywhere else in the world. In fact, the average price of residential property increased by 10% from January 2022 to June 2022.
In this article, we break down significant Dubai property market trends to expect in the next decade.
Exponential Increases in the Demand for Property
Dubai’s property market is booming, and that means the demand for both residential and commercial real estate is on the rise. The entire industry accounts for over 8% of Dubai’s gross domestic product (GDP).
Interestingly, the demand for property in Dubai is influenced by a battle for prime real estate. Many of the best luxury properties can be found in areas such as Emirates Hill, Palm Jumeriah, Al Barari, Dubai Hills, and Bluewater Islands.
Major Interest from International & Local Property Investors
As it stands, many of the international investors are from the United States, Canada, India, the United Kingdom, Italy, Russia, France, and China. Overarchingly, it seems developed nations in North America, Europe and Asia gravitate toward the Dubai property market.
Considering that international borders have opened and most of the travel restrictions of COVID-19 are behind us, this is the perfect time to purchase luxury vacation homes for personal use or to make lucrative profits in the hospitality industry. For example, Dubai South is a large-scale mixed-use property that’s been in development since 2006. Today, residents have all the amenities they could need right at their doorstep.
On the other hand, many UAE locals have started purchasing and developing properties to capitalise on the thriving industry. Now is the time to own a property in Dubai. The 8% increase in property prices means you are bound to make profits on a future sale.
Modern Architecture Becomes More Prominent
One of the standout aspects of Dubai real estate are the high-rise buildings and modern architecture. We predict that this style of architecture will dominate Dubai infrastructure for years to come. The entire city boasts a stylised, cosmopolitan feel that makes living in luxury part of the city’s culture.
Alongside the shift towards contemporary architecture and design, there is also an increase in multi-purpose properties and estates. Instead of building a few luxury apartments in isolation, we now see entire communities being developed in skyscraper buildings or large estates. These properties are fully equipped with restaurants, shopping centres, schools, gyms, entertainment facilities, hospitals and more.
Seamless Property Transaction Processes
In June 2022, AED 22.7 billion (USD 6.18 billion) worth of real estate sales transactions took place in Dubai — a record number in over a decade. Several high-ticket transactions occurred on daily basis due to Dubai’s seamless property transaction processes. Property deals are streamlined, automated and even done online. There’s also significant transparency when it comes to forecasting the value of properties in future.
Real Estate in Dubai has been sought after for decades. The city has reached new heights as a budding business and holiday destination. Developers, business executives, politicians, celebrities, and everyday people turn to Dubai for immediate luxury living — it can take years to find similar properties in other major cities.