Club Place
AED 1,480,000
Avena & Avena 2
AED 4,360,000
A surge in investment also comes as the Expo 2020 effect is expected to continue to push up property prices in Dubai. The Expo 2020 Dubai mega event, which opened on November 7, 2020, and lasted until April 25, 2021, has fueled demand for residential and commercial assets across the UAE's real estate market, pushing up property prices by more than 20% in Dubai Real Estate.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, saw back then when the property boom came in 2005–2006. He knew then that his country needed a vision and a plan that would help it become a global leader and establish its economy on firm ground.
As real estate experts, we support the idea of Dubai as a global capital for investment and business. This makes sense, given that the city is fast becoming a major exporter of high-quality services for international customers. For instance, Dubai hosted Expo 2020, which attracted more than 20 million visitors from around the world and was billed as an event.
Another example of such an event was the International Year of Survival and Prosperity Expo, which hosted more than 24 million visitors and kicked off in March of 2020.
According to the CEO of Dubai's leading real estate agency, first-time buyers tend to look for development projects with a reputation for building high-quality, well-designed units that are affordable. However, he added that investment from these investors is also seen across all properties, with all property types seeing high demand and appreciation during the study period.
Real estate experts in Dubai said the market is witnessing a seasonal slowdown, which can be due to the school holiday season and Ramadan. Many of our clients who are overseas purchasers put resources into Dubai's land.
To appeal to first-time investors, real estate agents are over-appealing to the prospects of buying property in Dubai by promising them a good return on rent. This is a good time for first-time buyers, who can earn between 4.5 percent and 9 percent per year on rent. The market in Dubai has always been regarded as safe and lucrative, with a good range of products available, from apartments near golf courses to villas with pools or penthouses in towers with sea views.
Dubai has continued to experience an increase in demand despite market uncertainty due to economic contraction and, more importantly, the recent breakout of COVID-20. As a result, the Dubai Property Index has also witnessed a 27 percent increase since the beginning of last year, and commercial real estate prices have risen by 30 percent since 2017.
In response to the booming real estate market, many first-time buyers have purchased investment properties in Dubai. As a result, this year will be more about investment than before. Dubai is a very attractive buyer's market now.
Dubai's property market is expected to be a buyers' market for at least the next five years. Speaking with The National, CBRE Chief Economist Abdul Jabbar Bafana noted that demand will continue to outstrip supply for at least half a decade.
According to Syed ul Haq, Dubai remains an attractive place to buy for first-time buyers and investors because it's currently a buyer's market. He says, The overall monetary crisis essentially influences property assessments in Dubai.
The Expo 2020 boom is set to continue well into 2023, according to Samana Developers. The company's CEO, Imran Farooq, revealed that the appreciation of Dubai real estate had reached a record 300 percent during the run-up to the Expo. On the other hand, rental values across the board in A-grade properties had shown an appreciation of 100 percent.
The UAE's business-accommodating visa system has energized new organizations, particularly in the expert and work-from-home classifications. This is why the boom sustained after Fund 2020 is not a temporary phenomenon, according to Farooq.
Despite the Post-Expo 2020 boom hitting its peak and the market cooling to a normal equilibrium, the real estate sector shows signs of growth and has the potential to keep rising annually.
Dubai developer Mouzhan Majidi has said that demand for real estate investments in Dubai is here to stay. However, we have seen that the interest for empty properties is higher than that of leased ones.
This is not a speculator's market, says Haq. In Dubai, the fluctuations may be enormous. However, the diagram has always been in an upward pattern. Nobody who has invested in the last seven years has ever said they have lost money. The safety you see in Dubai's real estate market is not anywhere else.
The real estate market has always been a good indicator of the macroeconomic environment, and in the UAE precisely, it reflects where our economy is heading. A thriving real estate sector indicates that people feel secure and have jobs. The slowdown we saw this year in terms of sales activity was due to the global economic downturn, but what we are seeing today is that our economy has started to stabilize. Soon enough, people will start spending again on homes.
Investors are no longer jumping into the market, hoping to sell quickly for a premium. Today, investors are buying entire floors. In the future, invest in Dubai real estate with confidence because the market will stabilize and prices will rise slowly and steadily.