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An Overview of the Dubai Real Estate Market and the Trends Influencing It

 Dubai is famous for its architectural marvels and skyscraper structures! It is the Middle East's business hub and one of the world's most popular tourist destinations. Dubai is also well-known for its high-paying jobs and opulent lifestyle. This is one of the primary reasons it has become a popular destination for expats.

Dubai Realestate Overview

 Because Dubai is a business center, economic activity is always at its peak, and purchasing a home or investing in the Dubai real estate market is very appealing to many. As a way to encourage foreign interest in the Dubai Real estate market, Dubai's residency and property laws have also undergone changes in order to facilitate the purchase of a property.

 Unfortunately, the Dubai real estate market, like many others around the world, suffered as a result of COVID-19. However, it has since experienced an increase in growth. It is expected to recover most of its losses by the end of 2021, particularly as COVID restrictions ease. 

If you’re interested in Dubai property investing, it’s crucial to be in the know. Let's take a deep dive into the three major trends shaping the Dubai real estate market.

1. Increased Foreign Interest

Since the end of 2019, foreign investment and interest have been slow in Dubai. However, as the pandemic slows, foreign interest is expected to rise. The renewed foreign investment will provide much needed support to Dubai's real estate market, allowing it to meet demand while also helping shape its future.

 

While the market is not yet out of the woods, the UAE has demonstrated its competitiveness, resilience, liveability, and growth. Changes to social and personal legislation aimed at promoting residents' and citizens' welfare, as well as a strategic overhaul of measures to promote business readiness, are paving the way for the country to thrive in all sectors, including real estate, despite its 2019 and 2020 setback.

 This is supported by the continued commitment to social development, including health, welfare, and education, as outlined in the 2021 UAE federal budget (AED 58.3 billion) has turned a lot of foreign investors' gaze back to the real estate market in Dubai. 

2. High Demand for Larger Houses and Apartments

 Staying at and working from home for an extended period of time has caused homeowners and renters in Dubai to crave more space, especially for setting up home offices. They also want larger properties where they and their families can enjoy moments together and strengthen their bonds.

 Apart from bigger residences, the demand for townhouses and villas in respectable communities is also growing as one of the fastest real estate market trends in the Dubai property market. Renters and new homeowners now want to live in respectable neighborhoods.

 Property developers are building larger homes and apartments to meet changing market demand, which means more space for you if you decide to buy or rent a property in Dubai in the near future. 

3. Luxury Real Estate is on the Rise

 In keeping with the demand for the luxury lifestyle that Dubai is known for, there is an increase in the development of ultra-luxurious communities, such as Dubai Festival City, which is among the most sought-after destinations for foreign investors looking to buy property in Dubai.

 One reason is that large residential, commercial, and entertainment developments, such as Dubai Festival City apartments for rent or sale, provide unrivaled views of the development and the Dubai Creek, as well as access to cutting-edge facilities.

 The Dubai property market has seen a new shift toward demand for large terraced apartments, villas, and townhouses. In Dubai, demand for such properties increased by 15% in the second quarter of 2020, most likely as a result of the COVID-19 lockdown.

 As a result, expect these types of properties to sell quickly and for more of them to be built. 

The Best Places to Buy Real Estate in Dubai

 The best places to buy property in Dubai are determined largely by individual requirements.

 That said, traditional areas such as Arabian Ranches, Downtown Dubai, and Dubai Marina will continue to attract buyers looking to purchase ready-to-move-in properties. Because of their well-developed facilities and exceptional views, developments along the Dubai Creek, such as Marsa Plaza apartments for sale,  also pique the interest of foreign investors.

 Suburban, off-plan developments such as those in Dubailand and Dubai Hills, on the other hand, will appeal to buyers seeking a high return on investment. The lower price per square foot, combined with the development of infrastructure in the surrounding areas, will almost certainly result in capital appreciation.

 

Choosing Between Ready-to-Move-in and Off-Plan Properties

 There are compelling arguments for purchasing both off-plan and ready-to-move-in properties in Dubai.

 But there are currently more incentives for buyers in the off-plan market, such as a warranty on the property and lower prices by as much as 10% to 20%.

 

The Dubai Land Department data from 2019 also supports interest in such properties.  14,000 transactions were recorded in Dubai's ready property market, and 15,000 transactions in the off-plan property market.

 

Many people are still hesitant to invest in off-plan properties, particularly because of a lack of funds for down payments; as a result, they are turning to the ready-to-move-in market, where buyers can benefit from ready projects with payment plans that require little or no down payment. In general, ready-to-move-in properties are the preferred option for many foreign investors.

 

On a Final Note

Dubai is currently a buyer's market, with numerous lucrative opportunities.

 

Due to the competitive nature of the market, developers are being creative in attracting buyers, both in the secondary and primary markets. The outlook for the  Dubai real estate market suggests that property buyers can expect not only desirable property prices but also terrific bank finance rates and post-handover payment plans.

 

Finally, sustainability and tech adoption have been accelerated by the pandemic and are expected to greatly influence Dubai's real estate recovery in 2021. It is projected that these will be the two critical themes that will help drive the industry forward and up this year.

 

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