With the weakening of COVID-19 at the end of 2021, the easing or lifting of various quarantine restrictions in Dubai, public life and economic activity began to return to normal in the emirate. At the same time, the city opened up to many foreigners: tourists, businesses, investors and experts.
Dubai has gained particular attention among a wide range of high-net-worth individuals (HNWI), who were attracted by the local elite, but relatively cheap real estate. The emirate's housing market has picked up the moment of growth and retains it to this day, having already lived several historical records and not going to stop there.
At the end of October 2022, 8,649 real estate transactions totaling $6.6 billion were concluded on the market in a month. The indicator is slightly lower than 9,720 transactions in August, but in annual terms it is still an increase of 13% in the number of transactions and 24% in the amount of proceeds.
For the fourth month in a row, real estate sales have exceeded the $5.5 billion mark, which the market owes to a lot of wealthy investors interested in elite and ultra-luxury residential real estate offers. In total, for the year to the end of October, the market earned more than $50 billion from transactions.
Over the past two years, Dubai has managed to assert its role as a «safe haven» for investors and the best place for wealthy foreigners to live thanks to a number of achievements at once: the successful holding of Expo-2020, which lasted six months from October 1, 2021, the successful response to the pandemic in 2020-21, as well as the active liberalization of the policy of issuing various resident visas and business visas in the first half of 2022.
Coupled with the recovery of business activity in the region, which began in the first quarter of this year, foreigners have accumulated enough reasons to choose Dubai as the most profitable destination for starting a business or moving. Especially considering that the most elite properties in the emirate, even against the background of inflation and high competition among buyers, remain noticeably lower than global competitors such as London or New York.
Villas remain the main commodity among wealthy buyers, especially in the elite areas of Palm Jumeirah (for example, Frond G), Dubai Marina or Emirates Hills. In October, almost 1,700 villas were purchased for a total of $1.5 billion — an increase of 1.6% year-on-year. Experts believe that this segment of the market will continue to grow at an active pace in sales volumes and prices, so many buyers who previously doubted will start thinking about acquiring such assets now, while prices still allow such a purchase to be made.