Dubai, UAE hits record-high transactions; Athens, Greece showcase strong numbers; Lisbon, Portugal remains a popular choice for expats
Around the world, real estate markets have different responses to the general market trends and the geo-political climate. Among the three countries that have shown a surge in property transactions and sales are the UAE, Greece and Portugal.
UAE: Dubai hits record-high transactions
Last year was a stellar year for the real estate market in the UAE, with Dubai hitting record high transactions. In November 2022, Dubai property market recorded its highest sales transactions with a 46% increase, according to Property Finder. Sales brought in a staggering AED 240 billion, a 61% increase from 2021. This surge was driven mainly by transactions of off-plan properties, which enjoyed an 86% increase compared to previous year.
Among the property development options, apartment projects brought in the transactions, accounting for 85% of the total sales. The other 15% were delivered by transactions for villas and townhouses.
The top 5 properties that saw gains in 2022 are Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Zabeel for apartments.
For villas and townhouses, the top 5 locations were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Arabian Ranches 2, and DAMAC Hills.
Dubai continues to be the preferred choice among investors looking to expand their investment portfolio outside their home countries. For several years now, Dubai has successfully positioned itself as a safe haven for high-end property investments. Whether you are looking to relocate your family and business to Dubai or to buy into the booming real estate market, this city offers a myriad of viable options.
The city’s luxurious lifestyle is strengthened by the safe environment it accords its residents. Access to world-class education and a robust healthcare system makes Dubai attractive to high-net-worth individuals seeking a better option for their families. Furthermore, its investment regime and favourable environment for expats has many allowed many people from all over the world to enjoy long-term residency with their families.
The influx of expatriates has also been fuelled by the Ukraine conflict. According to Al-Monitor, UAE’s “improved regulatory policies and diplomatic measures” amid the Ukraine conflict have welcomed foreign direct investment and boosted the UAE real estate market in 2022 above the global average.
While the war in eastern Europe has created much tension, Dubai’s reputation as a safe haven presents a much-needed alternative. Other countries have picked up on the trend to relocate to Dubai. Bloomberg further identifies like-minded investors including “crypto millionaires, and hedge fund executives after the city eased social restrictions and liberalized laws to consolidate its position as the region’s pre-eminent business centre.”
Greece: Strong numbers and positive projections for Athens
The real estate market of Greece also performed well in 2022, with apartment prices rising by 11.2% in Q3, up from 10.1% in Q2 and the same period in the previous year. Athens leads the trend with prices increasing by 13% year-on-year, buoyed by demand for room sharing options like AirBnB and the golden visa programme, according to Reuters, citing a report from the Bank of Greece.
Political stability, an expanding economy and an increase in the foreign interest all contribute to the good performance of the country’s real estate sector.
Among the locations that must be kept on the radar for potential transactions in 2023 is Athens. This Greek metropolis maintains its appeal for tourists and investors alike. Its proximity to coastal resorts make it a prime choice for those looking for options in this direction. As you move away from the city, the quiet of the countryside lures both Greeks and ex-pats alike, according to Immigrant Invest. The Athenian Riviera continues to be a strong favourite.
Despite the rising prices of the previous year, it still falls behind the record transactions of 2008. But with travel now picking up after the pandemic, the influx of tourists will certainly deliver positive results for the property market. The Mediterranean paradise still commands a strong position as a preferred destination with its beautiful landscape, exquisite cuisine and a people open to other nationalities.
For those looking to invest in properties in Greece, current real estate prices are still lower than 2008 and also more affordable than Spain by 35%. Rentals give owners an annual return of 10%, making this business track a viable source of passive income.
Investing in Greek real estate is also a proven track for a second passport via its CBI programme. A Greek passport guarantees visa-free travel to 185 countries, including all Schengen nations, Australia, the UAE, the UK, Japan, and Canada. Greek passport holders also enjoy the privileges of a citizen of the EU, making residency, travel, business, work and study around the region possible.
Portugal: The growing popularity of Lisbon and Porto
People have been moving to Portugal in the last several years because of its lower real estate market compared to other countries in Europe. In recent years, the influx of foreigners and investments has been fuelled by the popularity of the Portuguese golden visa. The country’s low cost of living, good internet infrastructure and friendliness to foreigners have helped drive real estate sales especially for key cities like Lisbon and Porto.
According to Portugal News, real estate investment went up by 39% in 2022. The hotel sector drove the increase with 30% of the total, followed closely by offices at 27%, industrial at 21% and retail at 9%. The market recorded EUR 3 billion in foreign investment. Overall this represented a successful year for the country’s real estate market.
Entering strong in 2023, experts are looking at 3 factors that will continue to drive the market: home renovation and more foreign investments. Idealista quotes Pedro Megre, CEO of UCI Portugal, "Real estate renovation has two essential motivations that go together. One is the financial question, since, as a rule, it is more affordable to acquire a property to renovate. This type of business is also interesting for investors, who can buy these properties and put them on the market later, and make a profit. Another is the environmental issue, since property renovations if you consider energy efficiency, can reduce the emissions of a house. Therefore, renovation and sustainability often go side by side."
Foreign investment continues to be a driver for the growth of the Portuguese real estate market. Favoured by many for its prime location in Europe as well as its great climate and great living conditions, Portugal lures investors, expats, and digital nomads alike.
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