After surviving a three-year oil price slump and a global pandemic slowdown, the Dubai real estate market is showing all the signs of a steady recovery. In fact, the Emirate registered 55,651 property deals worth AED 135.4B (USD 36.7B) in the eleven months of 2021, which is up 88.39% compared with the entire year of 2020. According to the listings portal Property Finder, this is the highest sales indicator since 2014, which confirms the strong confidence investors have in the potential of Dubai. Real estate buyers are attracted by visa reforms, new 100% business ownership rules and the successful vaccination drive, among other initiatives driven by the government. Not forgetting the world Expo 2020 which has recorded more than 6.3 million attendees since its launch back in October 2021, according to Gulf Business. As a result of the promising outlook, next year also looks bright in terms of real estate investments. Let’s check out the upcoming trends and forecasts from leading experts on what to expect in the future of the property sector in Dubai.

Development of the Dubai Real Estate Market

The Reuters survey of real estate analysts’ views, which involved 11 specialists, states that prices of residential properties in Dubai are set to rise by 5% in 2022, double the 2.5% increase predicted three months ago. The year 2023 also expects a surge of 3% in real estate values as well. At the same time, Asteco predicts a 7-9% increase in rentals of both residential and commercial spaces and a 9-14% surge in prices for luxury units in the UAE in Q1 2022. New residents will be attracted by the high quality of life in the UAE and recent visa reforms. As of September 2021, the UAE announced Green Visas and Freelance Visas which are aimed at self-employed individuals, without a need for sponsorship. Not forgetting that the DLD slashed the minimum qualifying amount for a 3-year investor visa, from AED 1M (USD 272K) to AED 750K (USD 205K). In terms of supply, as reported by the Dubai Residential Market Review│Autumn 2021, there are about 100,000 units due for completion before the end of 2021. If at least 78,000 homes are delivered as planned, then 2022 will see the highest number of new homes entering the market since 2009, when 120,000 units were commissioned. Nevertheless, as seen in practice, inevitable postponements of construction schedules will likely mean up to 30-40% of the 2022 total will be pushed into 2023, or even later. Meanwhile, by the end of 2025, the Dubai real estate market is set to witness a handover of 125,000 units in total. As for this year, according to JLL, the residential stock of Dubai increased to 629,000 properties in Q3 2021, with an addition of 11,000 units within three months. It is estimated that 20,175 apartments and 2,900 villas will be commissioned in Dubai this year. Experts of JLL also note that housing prices are one-fifth higher compared to prices during the 2010 loan crisis.

Rentals

As of Q3 2021, the Dubai real estate market registered a 14% spike in affordable housing and up to a 30% increase in luxury properties, according to Zoom Property Insights. The fourth quarter of this year is set to follow the lead, what with the impact of the recently opened Expo 2020. In fact, the world fair has already caused a surge in demand among short-term rentals. According to Vinayak C. Mahtani, CEO of Bnbme Holiday Homes, 2021 registered a growth of 100% Y-o-Y, with 2020 previously being a productive year. Short-term tenants tend to choose waterfront communities, such as Palm Jumeirah, Dubai Marina and Bluewaters Island. Currently, there are more than 10,000 active listings of short-term options in the Emirate. As for affordable long-term rentals, the following areas have been in high demand: Jumeirah Village Circle, Al Nahda, Bur Dubai and Dubai Silicon Oasis. Meanwhile, tenants searching for luxury units prefer the ever-popular Dubai Marina, Downtown Dubai, JBR and Palm Jumeirah. According to the real estate consultancy Core, rental prices will keep rising in 2022 as well, with villa districts and prime apartment locations leading

Property Prices in Q3 2021

All in all, apartment sale prices in Dubai increased by 14% Y-o-Y and villa prices increased by 37% during the same period. Of course, property costs in each area vary, so we have compiled a list of the most popular communities in terms of both apartments and villas. NB! The below-mentioned data shows property prices during the third quarter of 2021. Price rates may range depending on the current market climate and the amount of transactions.

Apartments

Villas

Why Choose Metropolitan Premium Properties

Our company is a licensed broker for many of the leading UAE developers, including Meraas, Dubai Holding and Emaar. Moreover, our real estate portfolio is brimming with a variety of property options, whether you are seeking a permanent residence or are willing to generate profit from a real estate investment. Our team of RERA-certified agents are experts in their field and have impeccable knowledge regarding sales transactions, obtaining mortgages and finding attractive rental options. Our company’s specialists can also help you with further management of the acquired real estate. If you are looking to rent your property, we provide services such as drawing up an individual pricing strategy, preparing the property for rent, finding reliable tenants, controlling timely payments, marketing of the property and full property management on your behalf. This approach is a guarantee that your asset will always bring you a stable income and save you from having to do everything yourself, which significantly reduces your time and resources to find reliable tenants.

How Can I Benefit from Current Property Trends?

Judging by the above-mentioned tendencies, now may be the perfect time to consider investing in the Dubai real estate market. It is recommended to do research on various real estate investment options, their advantages and the factors that may impact your potential income. The relevant solution is to hire a licensed broker who will familiarize you with the peculiarities of the Dubai real estate market, help you identify a reliable developer, and choose a project and location that will be most profitable for you. In addition, an experienced realtor will be able to tell you why investing in Dubai real estate is a profitable investment and help you reduce all the possible risks of buying by properly compiling your investment portfolio.