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.
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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