Dubai never fails to awe and astonish visitors; be it the world’s tallest structure or an artificial palm tree-shaped archipelago, Dubai walks on the extremes. This is true not only for those planning to settle in Dubai permanently but also for the growing number of potential buyers who are planning on dipping their toes in Dubai real estate market. As a major economic player, the city-state is always enacting laws that make it easier for businesses to set up their foundations there. The perpetually bright metropolis in the desert has caught the eye of financiers worldwide, but why?
The gleaming emirate has made it simple to conduct business. In terms of “Ease of Doing Business,” the government’s excellent leadership and policies have propelled the metropolitan to the top regional spot. In addition, Dubai has a proven track record of attracting FDI, with over 70% of the Fortune 500 choosing it as their top FDI destination worldwide. There is an unmistakable allure to investing in Dubai real estate. Dubai welcomes foreign investors and tourists with its welcoming culture and tax-free environment. More than that, Dubai is one of the safest cities in the world.
Overall the global pandemic slowed down the global real estate markets. Dubai real estate market was no exception. Still, things have improved since then, largely because of the UAE’s robust economy and the practical measures the UAE government has taken to stimulate the property market. The property market got off to a very strong start in 2018, with Dubai recording 5,797 sales transactions totalling AED 16.69 billion in the previous month. Despite a substantial supply of brand-new units that are anticipated to become available in Dubai, residential property prices will increase in the UAE in 2023, albeit at a slower rate.
The real estate experts and property agents in Dubai have predicted that 38,500 apartments and 3,800 villas will be made available in the UAE, virtually on par with prior years. Thirty thousand flats and 3,500 villas in Dubai will make up a sizable portion of it this year. Similar to last year, some of this is anticipated to take longer than projected or continue into the following year.
In January 2022, secondary/ready properties accounted for 53% of all transactions, while off-plan properties in Dubai accounted for 47%. 2,706 properties for sale in Dubai worth a combined AED 5.32 billion were bought and sold on the off-plan market, compared to 3,091 deals worth a combined AED 11.37 billion on the ready market. Sales volumes and price increases in upscale, sought-after locations will continue to rise in 2023.
Dubai off plan properties is a burgeoning investment sector and both the demand and prices are expected to grow in the years to come. Due to investor confidence, attractive pricing, the allure of Dubai, and top-notch projects launching in the market, the off-plan category is unlikely to slow off soon. In January 2022, the off-plan market recovered significantly compared to January of the previous year, with off-plan sales transaction value rising by 307.88% and volume rising by 183.05%.
Additional projects that portend well for Dubai’s future real estate market include:
It is simple to believe that 2023 will be just as prosperous a year as 2022 on the basis of a strong economy.
In 2021 and the first six months of 2022, some neighbourhoods performed better than others. Palm Jumeirah, Downtown Dubai, MBR City, and JVC are at the top of the list. The Palm Jumeirah apartments experienced a remarkable 4.2% gain month over month in May 2022. Villa prices in Palm Jumeirah — often billed as the Eighth Wonder of the World — rose by 5% in May. Properties in Downtown Dubai, JVC, and MBR all experienced similar growth.
It is not surprising that these areas remain popular with international investors. All of these areas, after all, provide excellent amenities and a variety of real estate options. For instance, finding a beachfront lifestyle greater than the one Palm Jumeirah provides would not be easy. Buyers can invest in townhouses and penthouses in Palm Jumeirah in addition to magnificent villas. Living in this area of Dubai is unlike any other, largely because it combines serene seaside scenery with a lively lifestyle.
In contrast, Downtown Dubai is renowned for its luxurious, spacious flats. Families and single people can both enjoy it here. The region is proud to have numerous prestigious schools and a thriving nightlife. The Downtown region of Dubai is home to some of the city’s greatest bars and restaurants. It is also a fantastic location for beach lovers because it is close to Jumeirah Beach.
Other regions listed in this piece, such as Downtown Dubai and Palm Jumeirah, also have a lot going for them. All of these areas are excellent for investment and relocating. Furthermore, now is a wonderful moment to invest because, according to property agents in Dubai, the property prices will continue to rise in the second half of 2022 and the following three to four years. Besides these projects, you can also have a look at top 10 housing communities in Dubai and judge them for investment and living perspective.
Since the Armani Residences Burj Khalifa launched on the market in 2010, residential development has exploded throughout the emirate, spurred on by the tremendous demand from HNW and UHNW buyers from all over the world. Due to its rapid growth, Dubai is currently a global leader in completed and upcoming projects, rivalling Miami and New York. We’ve witnessed launches from Four Seasons, The Ritz-Carlton, St. Regis, W, and Six Senses over the past 12 months, which has solidified Dubai’s reputation and increased confidence among hotel operators, developers, owners, and buyers.
A few important aspects that are influencing the emirates’ love affair with branded residential property have been examined in Knight Frank’s newly released Branded Residential Overview Dubai 2022.
In the last ten years, Dubai has developed into a significant global hub for branded residences, while the US, led by Miami, continues to have the biggest concentration globally. In Dubai, there are currently two distinct areas where branded residential property is concentrated; Central Dubai, which extends from Downtown Dubai outward along the Dubai Canal to Jumeirah 1, and New Dubai, which includes The Palm Jumeirah, Dubai Marina, and Jumeirah Lake Towers.
Since developers have realised the investment potential of branded residential properties in Dubai, there has been a significant shift toward producing more investment-grade property in addition to typical branded houses that cater to a worldwide UHNWI clientele.
The branded residential market has traditionally been dominated by brands like Four Seasons and Mandarin Oriental, as well as other well-known brands under Marriott and Accor. More recently, however, brands like Porche, Bvlgari, Cavalli, and Elie Saab, all of which have swathes of fiercely devoted fans, have joined the race to offer ultra-luxury branded residential homes.
Due to the lack of development options in Downtown Dubai and The Palm Jumeirah, developers are turning to these areas’ environs. Businesses are coming into places like Business Bay, where Missoni, Mama Shelter, Pagani, and the Dorchester Collection are all developing a presence as the Dubai market continues to develop and mature. The entry of these renowned companies has contributed to an overall rise in residential demand in Business Bay, which just entered Dubai’s exclusive $10 million home club.
In the wake of the pandemic, consumers worldwide are re-examining their living arrangements. In the branded residential market, consumers and investors are ravenous for even more opulent amenities and lifestyle choices, fuelling the emergence of some of the most exciting branded residential developments and properties in Dubai.