Against the backdrop of Expo 2020, the arrival of a large number of foreign visitors to the emirate, as well as high demand for the purchase of Dubai real estate in hotel and residential sectors of the UAE showed strong results in Q1 2022.

According to an analysis of Dubai’s real estate market, as of the end of March 2022, there were 657,000 units in the emirate, and it is projected that by the end of this year Dubai’s Housing stock will add another 42,000 units, including villas and apartments, with a combined total of 700,000.

The growth of the UAE real estate market was greatly influenced by several factors, including efforts made by the healthcare industry, the government’s response and management of the pandemic, the successful vaccination drive, and the UAE Golden Visa initiatives. The UAE Golden Visa is attracting real estate investors from around the world. The flexibility of new rules and enquiries regarding real estate in Dubai has increased three times since the recent introduction of the new regulations.

New rules have eased the eligibility criteria for long-term visas, including Green Residency, Golden Visa, and long-term entry permits for professionals, investors, entrepreneurs, tourists, jobseekers, and students. Investors become eligible to apply for a UAE Golden Visa by owning property that is valued at AED 2M (USD 545K). The stimulus package, combined with the loosening of visa restrictions, is one of the finest shake-ups to the UAE’s visa system and will come into effect in September 2022.

Due to Dubai’s desire to increase its population from 3.5M to 5.8M by 2040, additional demand for commercial, residential, and hospitality real estate will be created in the future.

During Q1, Dubai’s sales index was recorded at 1.251 with an index price of AED 1,18M (USD 323K). Apartments were recorded at 1.26 with an index price of AED 1,07M (USD 291K), and villas and townhouses had an index price of AED 2,09M (USD 570K).

Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai, and Sheikh Maktoum bin Mohammed, the Deputy Ruler of Dubai, have created private sector deals worth AED 9.9B (USD 2.72B), per annum, which boosted the Dubai real estate sector. The comprehensive plans for the restructurization of the Dubai Land Department and Dubai Municipality is aimed at promoting public and private sector partnerships, improving operational efficiencies, maximising the tourism industry, and ensuring sustainable real estate developments. The restructuring plan for the Dubai Land Department (DLD) is aimed at improving the real estate sector’s competitiveness and operational effectiveness by 20%.

In addition, an increase in mortgage interest rates has been observed since the beginning of the year, which leads to a record-high number of mortgage applications. One of the largest mortgage lenders in the emirate of Dubai increased its mortgage rate from 2.69% to over 4%. In Q1 of 2022, 33% more mortgage applications were processed than in the previous quarter, and in Q2 of 2022, the number of mortgage applications reached a record high level compared to the previous two years. As a result, there is increased confidence in the Dubai real estate market.