Despite the headwinds of inflation and concerns brought on by COVID, Dubai’s real estate market is again at the forefront, with promising opportunities for further expansion. The Dubai Land Department (DLD) has revealed data showing that October 2022 is among the most significant sales month, with 2,217 real estate deals bringing in AED 7 billion. The apartment and villa divisions of the Dubai property market both saw an increase in terms of sales volume and value, indicating that Dubai’s real estate industry is continuing its expansion. During the third quarter of 2022, Business Bay, Dubai Marina, Damac Lagoons, Jumeirah Village Circle, and Downtown Dubai will be the best-performing real estate sectors in Dubai.
Foreign investors have a persistent focus on residential real estate in the United Arab Emirates. Analysts credit high incomes and various government programs as the primary drivers of this rising demand. Read on to learn about some key Dubai real estate trends that will drive growth over the remainder of this year.
Statistics Showing Dubai Real Estate Trends – 46% Increase In Property Sales Compared To 2021
Property sales increased by 60% in the first half of this year, as reported by the DLD. The index of home prices in Dubai reached an all-time high record in June 2022, the highest level in a decade. Nearly $9,000 worth of sales has been recorded by the Land Department, for a total of AED 22.75 billion. 22,504 sales, which amounted to AED 59.15 billion, were recorded in Dubai during April and June 2022, which showed a 45.9% increase compared to the same period in 2021. Further, the third quarter of 2022 saw a record number of property sales in Dubai, with 25.5k transactions and a year-over-year increase of 59.93%.
Latest Dubai Real Estate Trends To Watch Out
1. Cryptocurrencies Will Give Dubai’s Property Market A Competitive Edge
One of the hottest Dubai real estate trends is enabling virtual assets to buy property in dubai. The real estate market in Dubai will see a massive improvement as more people start using cryptocurrencies as payment methods. Nakheel, DAMAC Properties, and Binghatti Developers, three of the leading developers in the UAE, have officially confirmed the implementation of cryptocurrency in real estate transactions. Hayvn’s CEO Christopher Flinos says cryptocurrency will entice first-time homebuyers to the UAE. Further, he added that around 68% of all cryptocurrency investors are below 30; this group represents a USD 1 trillion market.
2. New Golden Visa Adjustments Fuel Dubai’s Real Estate Industry
In April 2022, the UAE Cabinet revised its long-term visa requirements, making it possible to get a Golden Visa by investing AED2 million in a property. This visa may also be obtained by mortgaging the property. Due to this change, international investment will increase, and locals will have more incentive to make long-term financial commitments to the UAE.
3. Luxury Properties In Dubai Are Set To Explode As Prices Increase By 70.3%
The rising interest in luxury properties in Dubai that we’ve observed since the beginning of 2021 is expected to last until at least the end of 2022 and all of 2023. Dubai’s real estate industry is predicted to grow owing to international demand. Prices for luxury properties in Dubai climbed 70.3% in the year to September, making it the world’s largest gainer on Knight Frank’s worldwide index. Due to rising inflation in Europe following the Russian-Ukrainian conflict, 4,000 HNWIs are anticipated to flock to the UAE. Dubai’s high-end real estate market has attracted the attention of the world’s super-rich investors.
4. Modern Architecture Replaces Traditional Structure
The classic buildings of Dubai are a fusion of Islamic, Persian, and Arab designs. But a movement toward contemporary design has been observed in recent years, which is quite evident from the development of new high-rise buildings and skyscrapers. People choose modern homes with sophisticated interiors, such as apartments and villas, making them among the prevalent Dubai real estate trends. The Jumeirah sector saw exceptionally high levels of demand for apartments. At this location, the average sales per sq meter peaked at about USD 6112. Regarding the villa market, Palm Jumeirah demonstrated the strongest demand, with an average value per square meter of USD 9,892.
5. A Red Hot Market Continues To Drive Off-Plan Property Prices Up 50%
As more purchasers invest in unfinished developments, off-plan houses are becoming more popular in Dubai. Projects in Business Bay, Downtown Dubai, and the Dubai Water Canal continue to enjoy high levels of popularity. Property Finder reports that 42% of emirate buyers want off-plan properties. Compared to ready Properties, which exhibited a sales volume of 3,390 in all regions as of September 2022, off-plan properties had a monthly sales volume of 4917. In addition, prices for off-plan houses in prominent Dubai neighborhoods have risen almost 50%.
The Bottom Line
Undoubtedly, Dubai’s real estate market has had some ups and downs over the last several years. Prices soared and then plummeted, but these latest Dubai real estate trends have shown that property prices are again beginning to climb. The real estate sector in Dubai is showing an upward trend because its key drivers are the booming economy and growing population. Thus, investments in luxury properties in Dubai, apartments, ready buildings, or off-plan properties are all good bets if you keep up with the latest market trends.