Many property hunters from all over the world buy apartments in Business Bay and other popular areas in Dubai. Here we have collected some property trends that you need to know if you are considering buying property in this staggering city or housing in Dubai.
Growth in prices
Housing market experts expect real estate prices to rise in Dubai in 2023 by at least 5.0%, and possibly more. House prices in Dubai are set to rise twice as fast as expected three months ago next year, driven by demand from foreign investors and increased affordability, according to the Reuters survey. visit here
Thanks to the successful vaccination program and early ease of COVID-19 restrictions, Dubai’s economy has rebounded sharply this year, with retail and tourism sectors reviving, which in turn has helped the previously struggling real estate sector.
The Dubai Lands Department’s monthly report showed that the city’s real estate sector experienced its best October in eight years, and this trend is expected to continue in 2022.
A survey of 11 real estate analysts by Reuters showed that in 2022, property prices in Dubai will grow by an average of 5.0%, which is double the 2.5% forecast made three months ago.
The success of Dubai’s initial COVID-19 reaction, bolstered by the pace of vaccination roll-out in the UAE, has made Dubai the only major global hub free of restrictions by the end of 2021. The resulting stability, complemented by recent visa reforms, comparatively attractive prices and an overall quality of life in the emirate, continues to attract new residents. As Dubai is likely to experience robust economic growth throughout 2022, international demand for real estate here is expected to remain strong next year.
High villa and townhouse sales
The recovery in the Dubai property market so far has been driven by strong performance in the villas and townhouses category, especially in traditionally popular neighbourhoods.
In addition, 2021 is likely to be the best year in a decade in terms of residential real estate investment, as transaction volumes in September have already surpassed all year numbers since 2010. The capital value of housing in Dubai has increased by almost 10% per year, reaching 72.5 points in the third quarter of 2021, up from 100 points in January 2014.
However, as stocks of finished homes are depleted amid strong demand for villas, the widening gap between buyers ‘and sellers’ pricing expectations becomes noticeable. It is said that aggressive pricing after months of sales has left overpriced properties on the market as buyers explore other options rather than meeting owners’ demands.
Therefore, it is expected that from now on, the apartments will continue to recover, given the many options available on the market and more headroom for higher prices.
Taking into account these trends, it is high time to buy property in Dubai so that you can use it as a profitable investment taking advantage of currently more affordable prices.
Ax Capital will help you buy your perfect apartment in Dubai at the best price and ensure you a smooth and safe experience as our experienced real estate agents will guide you through the latest property deals and walk you through the whole buying process. Visit our website for more detail.