Contemplating purchasing a home in the UAE but don’t quite know where to begin? Here are a few pointers that might help clear your decision-making path.
Perhaps the first question that comes to mind is timing. A quick look at the 2022 record-breaking sales of residential properties in the UAE will clearly illustrate that the real estate sector is enjoying stellar success. 2022 has been an especially spectacular year, with total residential transactions reaching 90,881, exceeding the 2009 record of 81,182, according to CBRE. In Dubai alone, the total volume of transactions reached 8,662 in December, an 63% increase from 2021.
Dubai’s real estate market will continue to shine in 2023. In the first two months of the year alone, CBRE reports that total transaction volumes in the Dubai residential market have already reached 8,515 representing a 43.9% increase from 2022 and the highest record for February. A total of 17,741 residential transactions have been made in the first two months of the year, another record number for Dubai.
Without a doubt, Dubai’s property market will continue to enjoy substantial success in the next few months, further securing its place as the leading real estate destination for expats worldwide.
Up-and-coming real estate areas across Dubai
Regarding location, the top favourite spots for among the expat crowd are Dubai Marina, Palm Jumeirah and Business Bay. Spectacular views, proximity to leisure, school and business areas, and luxurious living are yours for the taking should you decide to take up residency in these areas.
For those who prefer to live in villas, Dubai has a myriad of choices among the prime locations dotting the city. Downtown Dubai, Business Bay, Jumeirah Village Circle, Palm Jumeirah, Arabian Ranches and Dubai Hills Estate are some locations worth visiting.
Why they are growing in popularity
In the world of business, Dubai has successfully positioned itself as the global hub in the region, attracting investors, businessmen and entrepreneurs from all across the globe. Not far behind are the families of these global businessmen who follow suit, lured this time by the promise of high quality of life, safe neighbourhoods and reputable schools. And it seems that HNWIs who are looking to explore what their wealth can give them in this part of the world have found what they want.
In 2022 Dubai logged 67,900 HNWIs, based on a report by Webster Pacific. It lists the top 5 locations favored by HNWIs: Jumeirah First, Al Barsha, Jumeirah, Arabian Ranches and Al Thanyah. The concentration of wealthy ex-pats, 35% of the total number, live within 5 minutes of each other.
Among the factors cited in the report for expats choosing these locations are:
- Jumeirah is distinguished by its upscale, suburban feel and proximity to the gulf and downtown Dubai.
- Al Barsha is ideal for wealthy families due to the abundance of schools, such as GEMS Dubai American Academy and King’s School Al Barsha, along with access to elevated shopping at Galleria Mall Al Barsha.
- Arabian Ranches and Al Thanyah offer more secluded communities with a multitude of world-renowned golf clubs and equestrian facilities.
Growth in property value in these areas over the years
According to a report, Dubai residential prices for apartments and villas have been on a steady rise largely due to the great demand and limited supply.
- In 2021, rental costs of Dubai’s residential communities surged by 26.1%, the highest level on record. Apartment rents jumped by 27.1%, and villa rentals rose by 24.9%.
- The rising prices continued well into 2022, with apartment rents rising by 9% and villas by 12.8%, respectively.
- Jumeirah is the most expensive area to buy per square foot for the apartment segment at Dh2,324. Palm Jumeirah registered the highest sale per foot for the villas segment at Dh3,921.
- In 2022, 22,397 new apartments and villas were handed over to tenants. 26.2% of these were in Jumeirah Village Circle, Damac Hills 2 and Dubai Hills estate.
- A total of 8,662 real estate transactions in Dubai were recorded in December 2022. The supply is expected to increase as 70,957 residential units are expected to be handed over this year. Around 32.4% of these units are in Meydan One, Business Bay and Downtown Dubai.
Property is forecasted to increase in prices largely due to the inflow of HNWIs who are upping the demand for luxurious residential units. This influx is a direct result of the new visa schemes that the government has rolled out that encourage expats to stay in the emirate longer and even take up residency in these upscale locations.
Why properties in these popular areas are a good investment
The Dubai residential market has enjoyed strong consumer and investor confidence, as the increasing demand shows. With demand rising and the supply barely keeping up, prices will certainly go higher. As such, the best time to invest in these properties is now.
In design and construction, these residential properties are unparalleled in luxury, comfort and style, equally matching the discriminating taste of its clientele. Location and proximity to business areas, leisure and entertainment centers, and educational institutions complete the package.
If you are considering relocating to Dubai and are looking for your future, our experts will be more than available to assist you.