The consequences of the pandemic that hit the global economy in 2020 have now begun to decline concerning the real estate market of the Emirates. The government’s successes in fighting the virus, nationwide vaccination, and flexible policy of the UAE Central Bank led to a noticeable recovery of the sector. Now is a good time to consider the types of real estate that survived the crisis year, their profitability, and price growth rates. If you want to buy house in Dubai Hills, then check out the Ax Capital agency offers.
1. Experts assessment of the real estate market
Imran Farooq, chief executive of Samana Developers, said he is a firm believer in the Dubai real estate market as he has three new residential projects planned in the emirate. He said Dubai is a hotspot for investors with a positive outlook, while its property sector is performing well and able to deal with a serious pandemic. The city has launched a massive Covid-19 vaccination to protect its 9.89 million population. Turning vacant hotel suites into quarantine centers in the UAE was a groundbreaking idea and helped reduce the spread of the coronavirus.
Shazil Imtiaz Rafi, Managing Director of Rafi Group, said Dubai has a unique real estate market development landscape and will continue to be an attractive market for investors around the world.
2. Things to remember about Dubai
- None of the residence permits gives the right to obtain citizenship of the country in the future.
- With the most loyal attitude towards foreigners, the legislation does not provide them with all the benefits that the native residents of the emirate enjoy.
- Features of Islamic culture: restrictions on the sale of alcohol and tobacco, the need to comply with the rules of behavior for men and women in society.
- Some shops, cafes, restaurants, parks at certain hours or in general may be accessible only to women and children.
3. Growth in sales of premium property
According to statistics, about 7% of the total number of transactions were made with premium real estate, whose value is more than USD 10 million. Experts also note an increase in the average cost of villas located in areas such as Dubai Hills and Palm Jumeirah. On average, they grew by 15-18%.
The new off-plan projects presented last year also contribute to the growth of the price range. According to the consulting company Knight Frank, in new projects, the cost of one square meter is more than USD 29,000.
It is noteworthy that despite the growth in the cost of premium real estate, it attracts many investors from all over the world. Residents who are considering Dubai as a potential relocation city are attracted by the extensive business opportunities and tax benefits.
Another proof of the “mobility” of prices for real estate in the premium segment is the increase in the cost of villas. For example, in the Dubai Hills area, their prices increased by 18%, and in the Mohammed Bin Rashid City area by 19%.
4. Real estate in Dubai
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