As the 50th anniversary of Dubai’s World Expo draws near, a recent report reveals that the real estate market has seen unprecedented growth and activity. The results from the past two years confirm that the sector is not only resilient but also attracts FDI. This in turn will have a positive impact on the real estate market. In addition, this sector represents one of the major drivers of the city’s economic development, so the results from the last two years are encouraging.
The fourth quarter of 2021, the UAE’s real estate market saw a surge in inactivity.
In fact, almost 85,000 transactions took place, totaling 81.7 billion AED or 81.7 billion US dollars. The demand for luxury properties increased by 41% during the fourth quarter of the year. Luxury villas in particular were in high demand. The prices of other properties in the city’s Palm Jumeirah island and Arabian Ranches development rose by a whopping 23.7%.
The number of sales and purchase agreements reached a high not seen since 2012, and private home prices surpassed 2012’s highs. In addition, the number of major investment deals increased by two-thirds, and the city’s waterfront and industrial buildings are among the most active sectors. The office leasing market stabilized at 513,000 square feet NFA in 2H21, and the rental market started to pick up. The prime residential districts are expected to hit a new peak during the next five years.
Sobha Group founder PNC Menon recently announced plans to launch a Waterfront District in Sobha Hartland during the year 2021. Waves Grande projects were launched in November 2018. In 2018, the group launched Tranquillity plots. This project was sold out in all phases and is scheduled to launch another iconic project on Sheikh Zayed Road in 2019. Sobha Group is a strong contender in the real estate market in the city.
Copperstones Properties has been a major player in the real estate market during the past two years. While the luxury and mid-tier sectors dominated the market, the middle-tier property sector has also witnessed an influx of foreign investors. Some developers are offering payment plans that are more affordable than in other regions. In fact, it is one of the only places in the world that offers attractive payment terms.
The UAE government has taken the initiative to attract international investors and talent to the country.
These reforms have made Dubai a preferred destination for many in the region. In the next couple of years, the country is expected to continue to attract foreign investors and professionals. As a result, the economy will continue to thrive and the property market will see an increase in sales, despite the global recession. This will mean that prices in the prime villa, Luxury properties in Dubai, and apartment districts will rise again during 2022.
In the coming months, the market will see further growth as the UAE manages the pandemic. The economy is expected to grow by 5% this year. With a strong economy, the economy, and property prices all contribute to this growth. In the meantime, the market will be flooded with foreign investors who will be able to purchase property at a lower price. However, in the short term. It will remain difficult to sell the real estate in Dubai, as the supply is higher than demand.
The UAE government has continued its efforts to attract international talent and high-net-worth individuals. This is reflected in the government’s efforts to reform the real estate market. In the first three months of this year, the country registered a total of 2,518 million off-plan property sales. In 2021, the UAE will continue to grow at a slower pace, with sales volumes continuing to increase.
The recession in the UAE has pushed demand for real estate to skyrocket. The region’s economy is now recovering, and more foreign investors are buying properties in the UAE. Amid this, the luxury and mid-tier property markets have experienced the same growth. This is because the demand for luxury apartments for sale in Dubai is now greater than the supply of mid-tier units. The government is also working to ensure that private investors are not disadvantaged.