Due to the UAE government’s proactive economic changes and an expedited vaccination programme, Dubai real estate market is expected to grow in 2022, following a year of relatively near stagnant growth due to the coronavirus epidemic. One of the country’s economic stimulus programmes is a residency visa for retirees and remote workers (freelancers).
The Head of Real Estate Research predicts that UAE developers will produce between 50,000 and 60,000 housing units in the coming year. To entice more buyers and investors, major Dubai developers like Emaar and DAMAC have introduced new deals. Packages include no-cost registration with the Dubai Land Department and convenient payment arrangements. Measures of this nature will boost demand for Emaar and DAMAC real estate. In 2022, Dubai’s builders will likely keep looking for new ways to provide discounts to potential customers.
According to numerous property agents in Dubai, the off-plan real estate market is expected to make for a sizable portion of Dubai’s total sales. Investors and tenants alike will be particularly interested in residential properties for sale in Dubai that have access to water. As of September 2021, residents of the United Arab Emirates will be able to apply for a freelance visa. People with this visa are permitted to settle permanently within the country and engage in self-employment. Freelancers in the United Arab Emirates can sponsor their spouses, dependent children, and elderly parents.
According to Bloomberg, the price of properties in Dubai is predicted to increase by 2.5% in 2022. New construction in the emirate of Dubai is expected to rise steadily between the years 2022 and 2023.
In many ways, Dubai’s economic growth has been phenomenal. The government has launched several programmes and changes over the past few years to increase foreign direct investment.
Additionally, the UAE’s bold move to adopt a more international workweek from Monday to Friday helped the emirate advance in terms of trade, transportation, and its status as a financial centre and tourist destination. The UAE Central bank predicted a GDP growth rate of 4.2% for 2022, twice the growth rate in 2021. As a result of the affluent population relocating permanently to Dubai, population growth is anticipated to accelerate. This will ultimately trigger a dynamic growth in economy.
During the latest visa overhaul, the UAE government announced new residency programmes. These included Freelance Visas and Green Visas and the opportunity to obtain a Golden Visa when acquiring an off-plan for a minimum of AED2 million. The property may also be mortgaged to be eligible for this visa. As a result, this action will encourage more foreign investment into the emirate. Also, it will give locals a compelling reason to make long-term investments in the UAE. Young professionals, in particular, will benefit from the new development. This is because they can support their country’s economy and purchase a home because the upfront cash investment is lower.
The usage of cryptocurrencies for real estate transactions in the UAE has recently been solidified by some of the Dubai real estate developers, including Nakheel, DAMAC Properties, and Binghatti Developers. For instance, Nakheel allowed its users to use cryptocurrency to pay for their rent, services, and real estate transactions. It was also announced that DAMAC Properties would begin accepting Bitcoin and Ethereum as payment methods for real estate purchases. About 68% of Bitcoin investors are under 30.
It is predicted that adopting cryptocurrencies will bring several first-time homebuyers to the UAE. The benefits of cryptocurrency transactions include the lack of checks, loans, and fees!
As fresh growth catalysts emerge, the conditions in Dubai are ideal for additional development.
As stated by several property agents in Dubai, all high-end apartments by Dubai’s major developers have sold out since 2021, thanks to the city’s surge of high-net-worth individuals.
Many high-end developments debuted in Dubai during the first half of 2022. Developers in Dubai are scrambling to address the city’s shortage of high-end properties in Dubai with projects including AVA at Palm Jumeirah, Elysian Mansions, and Six Senses Residences, Palm.
There is a growing awareness of governments, businesses, and individuals’ role in ensuring a sustainable future. Urban buildings are responsible for almost 40%of global carbon emissions. Therefore, it is incumbent upon all developers of properties in Dubai to place sustainable solutions at the centre of the development process and upon governments to enact legislation and incentives to push sustainable development opportunities, in line with the United Arab Emirates’ commitment to reaching net-zero by 2050.
Over the next five years, as the UAE and the world align with global sustainability targets, community-based sustainable developments will take centre stage. Targets for zero net carbon output and energy efficiency are just a few of the climate-friendly solutions that may be found in the real estate industry. Properties for sale in Dubai have a lot of room for growth in physical structures and in terms of tenants’ health and happiness, social sustainability, diversity and inclusion, ease of access, and even the adoption of electric vehicles. The properties for sale in Dubai which will offer these at the lowest cost will be the most successful.
The villas and townhouses had the greatest appreciation in value and demand. Apartment sales have also increased significantly from 2020 levels. This tendency is projected to go on till 2022. The Dubai real estate market has reached a point of maturity. As a result of tighter controls, increased assistance for buyers, and record-low mortgage rates, the market has shifted toward serving consumers directly.
There will be a continuous need for new housing to handle the influx of people, providing more jobs and higher consumer expenditure. Dubai’s real estate market is set to expand gradually. Consequently, this will attract more local and international purchasers, thanks to the city’s progressive administration, world-class infrastructure, and multicultural business climate.
