Prices for purchasing and renting real estate in Dubai will increase in 2022 amid a strong economic recovery in 2021, according to the S&P Global Ratings’ latest report – ‘Dubai Property Market 2022: Reinvigorated By Strong Demand’. The moderate increase in prices and rentals, as well as strong sales are expected in 2022, which will encourage developers in the emirate to continue to launch new projects. About 30,000 residential units are expected to be added to the market during 2022.

In 2021, Dubai’s economy grew by about 3.5%. Consumer spending also increased, and retail trade recovered from the previous year. Dubai’s economy will benefit in the medium term from government initiatives that include the relaxation of company ownership rules, new visa initiatives, more liberal social laws and a working week alignment.

Dubai’s GDP is expected to increase by 2.5% in 2022 and by 2% in 2023, according to the latest forecasts. High demand for residential real estate will continue, as evidenced by a 60% increase in the number of transactions, rising prices, a stable share of mortgage transactions, and the pre-sales of a record level for developers. At the same time, real estate in Dubai remains relatively affordable, because property prices are 25-30% lower than the peak of 2014, even despite a significant increase in 2021. Geopolitical tensions may also provide further growth in demand for property in the emirate as well.

Demand for short-term rental housing and the interest in real estate ownership in Dubai has grown against the backdrop of EXPO 2020. There is always an increase in property prices in the cities where the EXPO takes place, as most of the host cities, with the exception of Shanghai, become well-established destinations with stable housing markets and population in the aftermath of the event.

Dubai is a rapidly developing city with huge growth potential and a unique location. At the moment, demand is already beginning to exceed supply, and this trend will continue as international interest grows. Qualified workers in all field sectors and investors are attracted to Dubai because of its first-class healthcare, excellent education establishments, as well as an unsurpassed lifestyle.

Energy-efficient smart homes built using environmentally friendly materials and a sustainable urban environment are high on the priority list for modern buyers. It is expected that the value of property in the emirate will continue to grow as long-term tenants move from renting to buying and owning. The catalysts for the real estate market in Dubai was also the introduction of the “golden visa” programme, the improvement of diplomatic relations and the fast settlement and treatment of Covid-19.

After the end of the exhibition and a spectacular closing ceremony on 31 March, which will be held in the World Expo’s Al Wasl Plaza, the Expo 2020 site will turn into a unique urban development. About 80% of all structures will be repurposed into an integrated multifunctional community. District 2020 is a part of Dubai’s 2040 Urban Master Plan.

The post-Expo District 2020 site aims to become a hub for global tech innovation, with the first business tenants set to take their places from Q4 2022. The Scale2Dubai global entrepreneurship programme will provide opportunities for startups and small businesses to finance and empower innovative start-up enterprises in the emirate that are capable of making an economic and social impact. By the end of this year, the programme will host its first group of 85 startups and small businesses in the District 2020 site.