Dubai is known for its luxurious real estate, and over the past few years, the market has been booming. Despite recent economic downturns in other parts of the world, Dubai real estate market is still growing at a fast pace. UAE has time and again proven to be a country that places progress and development as its foremost priority. With the introduction of revised visa norms, UAE has been attracting huge amounts of foreign investment in the real estate sector.
Constant emphasis is being laid upon giving a push to the real estate in Dubai through highly attractive projects spread across various price segments. While Dubai real estate remains on an upward trajectory in terms of growth prospects and its current valuation, some noteworthy trends observed in the Dubai real estate market must be highlighted.
Huge surge in foreign investments
As the saying goes one man’s misfortune is another’s opportunity, the real estate in Dubai is experiencing a huge inflow of investments from Russia, India, Italy Canada, the United Arab Emirates, Pakistan, Egypt, Lebanon and China among several other countries. This has been linked to the geopolitical instability in Europe due to the Russia-Ukraine war. Residential real estate transaction volumes went up by 60% with an 85% rise in the value of a property. Relaxation of the UAE visa norms has also contributed significantly to this uptrend in the Dubai real estate market.
Off-plan properties are on!
A large number of buyers are inclined to buy off-plan or those properties which are yet to be constructed and are still at the initial stages of their planning phase. The Dubai real estate trends show that 42% of buyers in Dubai are interested in off-plan properties for the lucrative price point they offer as well as the flexibility and freedom of having a home built to suit one’s needs and aspirations.
Big and luxurious is the key
The pandemic has changed the way people want to choose their homes. From homes turning into workplaces for many during the lockdown phase, property buyers have started to search for bigger houses loaded with plush amenities for recreational purposes in Dubai real estate.
The utility of warehouses you probably didn’t know
One could have never thought of utilizing warehouses in a manner that makes them double up as workspaces due to the cheaper rental options associated with them. “Warehouse rental rates suitable for office conversions fluctuate between 40-65AED per sq. ft while, rents in the Central Business District (CBD) may be 225-250AED per sq. ft.”
So, to deal with the tight property market of Dubai, many professional companies lease a small space in the prime location particularly to conduct client meetings but operate majorly from the warehouse spaces converted into a corporate or commercial space.
However, it must be noted that in the Dubai real estate market trends, demand for warehouses and storage spaces has increased due to the rising demand in the logistics sector directly linked to the growth of eCommerce companies.
New projects to steal the deal
According to the statistics released by the Dubai Land Department (DLD), “A survey involving property analysts forecasted Dubai house prices to rise by 3.0% in 2021 and 2.5% in 2022 compared to 1.1% and 2.8% three months ago.” With big players in Dubai real estate investing in a great number of commercial and residential projects, sustainability, affordability and luxury remain coterminous to one another. Danube, Emaar, Sobha, Nakheel, and Dubai properties are some of the most well-established real estate companies that bring Dubai real estate for sale to its customers.
“DLD shows a total of 2,509 transactions worth AED 10.9 billion, equivalent to USD 2.97 billion. During the same period, 263 land plots were also sold with a total value of AED 1.46 billion.” Within a week Al Hebiah Fifth area recorded 130 transactions to the tune of AED 328 million, Jebel Al First Area recorded transactions worth AED 92 million, and Al Yufrah 2 district saw transactions going to AED 28 million. Dubai real estate for sale has seen a huge demand in lieu of several measures introduced as part of boosting the post-pandemic recovery of the real estate in Dubai which remained resilient to all the economic slumps posed due to the lockdown situation.
Caring for the Environment
UAE is committed to achieving its goal of Net zero carbon emissions by 2050, so community-based sustainable projects will be promoted at a large scale as urban cities contribute to 40% of worldwide carbon emissions. The adoption of energy-efficient and renewable means of living is vital to sustaining the planet. The projects that adopt this at the earliest and the most affordable price are sure to capture the market.
These were some of the notable trends in the ever-growing real estate market in Dubai, if you are looking to invest in a property that is full of comfort, excitement and sheer luxury, our team at Clematis Properties can help you find the best deal and ensure a smooth transaction. Do not hesitate to contact us today for more information on purchasing property in Dubai!