Real estate sales and transaction values have been rising as Dubai’s market has been recovering. In the light of this year’s price growth, both local and foreign investors purchase housing and commercial units. Despite the fact that 2013’s peak performance is still far away.
House sales are expanding. Buyers have been snapping up properties. More and more people look for villas and townhouses in developments like:
- Mohammed bin Rashid City;
- Nadd al Sheba;
- Dubai Land,
- Dubai Hills Estate
- Green Community.
There are a lot of offers to buy apartments in Business Bay, Dubai Marina, Jumeirah Lakes Towers, etc.
Premium real estate sets new records
Wealthy foreigners have boosted their demand for luxury real estate in Dubai. Prices grow as demand rises. Premium real estate has risen in price by 40% in some parts of the emirate. Peak performance, meanwhile, is still a long way off.
Rich people’s interests are stoked by a fair business environment, tax incentives, the government of the United Arab Emirates’ initiative to develop attractive investment visa and residency permit programmes, and success in the battle against the coronavirus.
Global and domestic demand
Next, loans that are profitable. A reform was implemented by the UAE Central Bank. The down payment was specifically lowered from 25% to 20%, which made the mortgage more manageable. And this is as banks continued to offer historically low rates starting at 1.99% (as opposed to 2.49% in mid-2020).
As a result, the number of mortgage-related transactions grew by 91%. And the number of transactions with borrowed funds reached 40% of all sales in Dubai.
The average loan amount for the first six months increased by 24% and amounted to about $600,000. As you can see, buyers took out loans for not the cheapest housing.
Overseas buyers and their goals
Interest in real estate in the UAE from foreign buyers is going up.
Foreign buyers have become more interested in purchasing real estate in the UAE.
Dubai is at the top of the demand list. Investors are mostly searching for affordable homes and apartments in this area, with prices starting at up to €200,000. These requests make up 67% of all requests.
Goals behind the purchase
Jobs in Dubai.
More and more non-residents move to Dubai in search of a more fulfilling life, professional success, and high income. For personal living, they are primarily searching for middle-class apartments.
The emirate’s authorities are also working to attract and keep existing residents with:
- free economic zones;
- developed infrastructure;
- high standard of living;
- active real estate market, where you can find affordable options and lavish properties;
- vacancies for specialists of various qualifications. Personal income, inheritance, business profits, and gains from the sale of real estate are all not subject to taxation.
Additionally, there are more and more visa programmes that help investors, managers, entrepreneurs, startupers, highly qualified experts, and professionals who work remotely to relocate to the Emirates with their families. There are already “Golden visas” for investors and talents, as well as a residence permit for “digital nomads” and a residence permit for foreign retirees. And the UAE government announced the granting of citizenship to talented expats.
Rental income
Aside-hotels or residential real estate in Dubai’s beach districts are the most popular choices for those who are interested in investing.
For many, purchasing buy-to-let real estate appears to be beneficial. First, a huge percentage of the population growth (80 times over the previous 60 years) is due to foreign people who come as entrepreneurs, investors, and workers.
Second, Dubai is particularly well-liked by tourists. For all of them, renting is the preferred option to stay in the emirate.
Third, the yield is relatively high, averaging between 6% and 7% a year. For instance, the best rental income you can expect in major European cities like Berlin or London is between 2% and 3%.
Capital diversification
Long-term investors acquire high-class properties in the best complexes. Rich buyers are drawn to the state’s favourable investment atmosphere, low taxes, and the possibility of rising property values along with market expansion.
The announced Dubai Development Plan through 2040 contains some assurances that expansion will continue (the Urban Master Plan 2040). It requires multi-billion investments and extensive development.
In conclusion
Please check Emirates.Estate website to learn more about real estate offers and prices in the UAE.
