For eagle-eyed investors looking for the best markets to invest in, the UAE offers immense possibilities. Riding high on a government-initiated growth plan, Dubai is leading the charge in attracting foreign investors as a real estate development oasis.
There are several reasons why Dubai is front and centre of the property development boom in the region. With its fearless and pioneering approach to real estate development, Dubai has gone where no city has ever dared to go before, not just in development but, more importantly, in creating new livingspaces. Once deemed as audacious, many of these properties are now the benchmark for global real estate development. The steady growth of the industry in the past decades is testimony to the daring foresight of this mega city.
For investors who are looking for robust opportunities, investing in Dubai real estate presents high returns.
GROWTH OF THE PROPERTY SECTOR IN TERMS OF TRANSACTIONS
Whether investors are looking to own properties to serve as their second homes or to increase their investment portfolios, Dubai definitely has much to offer.
According to a report by LUXHABITAT Sotheby’s International Realty, Dubai prime residential market has seen remarkable growth in Q3 2022 with a consistent 1.11% increase every quarter. This is great news for investors who are assured of high returns on their investments.
More than 7,273 properties were transacted in the third quarter of 2022 alone, spurring even greater confidence in the market of prime residential properties. This represents a 33.4% year-on-year increase in volume, according to the latest report by consultancy CBRE. These include property deals for off-plan and secondary projects.
Dubai’s property market has continued to show increased numbers since the start of the year, presenting a vigorous recovery from the effects of the pandemic. Based on preliminary data from the Dubai Statistics Centre, Dubai’s economy has grown by 6.2% in 2021.
REAL ESTATE INCREASED IN AVERAGE PRICES, ACCORDING TO REPORTS
In the last 12 months alone, prices in upscale locations in Dubai have increased by 90%. Among the properties leading in the prices game are Jumeirah and Palm Jumeirah, with notably high market prices per square feet. Prices are projected to end the year 50% higher than 2021, according to Faisal Durrani, head of the Middle East research at Knight Frank.
This mirrors the rising demand for luxury rental residential and business spaces as more foreigners are opting to expand their careers and businesses in the city. Dubai has been known to be very welcoming to foreigners. More than 80% of its population are expats. The 3 million or so foreigners living in Dubai will continue to increase in number with the relaxing of visa requirements, especially for those who are looking to get their golden visas by way of investing in property.
Moving into 2023, Dubai’s prime residential property market is projected to lead the global stage. According to the 2023 Knight Frank Global Prime Residential Forecasts, Dubai is set for a 13% increase, well ahead of market prices in other sought-after property markets such as Miami and the UK.
With the projected increase in population and a growing number of expats drawn to the city’s vibrant business environment, investors are well-positioned to take advantage of the increasing demand for residential and business properties.
POSITIVE OUTLOOK IN PROPERTY DEVELOPMENT
Dubai’s real estate development landscape is also becoming more and more exciting as construction projects continue to increase. Luxury properties are on the upswing as more foreign investors are choosing to heed the appeal of these high-end projects.
The Dubai Expo 2020 has given the developers more leverage by inviting entrepreneurs and business organisations to build their headquarters in this dynamic city. Alongside this move is the expected influx of residents and possibly their families as more foreigners seek to expand their businesses in Dubai.
The Dubai 2040 Master Plan launched by the government has only buoyed property development. Mixed-use locations that juxtapose residential and business locations are projected to encourage more people to establish their presence in Dubai.
At Property Legacy, we have also seen the immense opportunity that the UAE has to offer and works with the best partners to provide our clients with the most sought-after listings in the country that meet their lifestyle and investment goals.
STRONG GOVERNMENT SUPPORT
The success of Dubai as a global real estate destination stems from strong government support.
No other city or country comes close to the incredible growth path that Dubai has carved for itself.
Recently, new rules on the acquisition of the golden visa have given foreign investors even greater reasons to opt for Dubai. With their investment in real estate, they can already obtain a ten-year renewal visa, which can be extended to members of their immediate family. This provides them with the opportunity to not only benefit from the strategic location of the emirate as a global destination but also see the growing value of their investments.
STRONG PUBLIC CONFIDENCE
Dubai’s prime residential market has continued to set records well beyond estimates. And there seems to be no slowing down for this global real estate behemoth. Anywhere in the world, investors and business organisations alike look to Dubai as the forerunner in property development. Bold but calculated plans characterise the trailblazing streak that this emirate continues to own. Backed by strong government support and sound financial regulations, the UAE is definitely the investor’s hub.
At Property Legacy, we are dedicated to helping our customers from around the world make the most of the opportunities in the UAE. Backed by decades of combined experience, our dedicated team of industry professionals simplify buying, selling, renting and investing in real estate by working with you every step of the way, offering one-on-one support 25 hours a day, 7 days a week.
If you would like to know more, reach out to us at [email protected]
