Investors Guide to Dubai Property Market – Everything You Need to Know

With its cultural diversity, stunning architecture, historical sights, and fast-growing economy, Dubai has become the home of countless successful investments over the years. Golden opportunities attract thousands of local and international investors, a large percentage being in real estate. This guide summarizes the most important information about Dubai’s property market and why you should consider it for your next investment.

Why Dubai?

This common question has many answers, but to summarize them all we must go back to 2002, when the right of property ownership to foreign nationals was announced. This welcomed a huge number of real estate investors from all over the world and many more have followed since then. Today, Dubai holds the highest level of growth the real estate market has ever recorded.

Additionally, here are some important points to have in mind about Dubai:

● Attracts 15.93 million annual visitors.

● Considered a gateway connecting 2.4 billion consumers across the Middle East, the Indian Subcontinent, and East Africa.

● One of the highest rental returns in the world.

● Home to a growing and stable economy.

● Tax-free investments.

● Allows for full foreign business ownership.

● Outstanding architecture.

● Futuristic vision and ambitious opportunities.

Comparison between the major cities

Contrary to popular belief, Dubai is the most affordable choice when it comes to property investment, and our blog article What can $1 million get you in the major cities of the world further elaborates on this matter. Let’s take a look at a digested version of this comparison:

Hong Kong $ 4,610

New York $2,500

Paris $1,590

London $1,920

Dubai $580

Also representing the highest ROI across the major cities (average of 7%), Dubai is well known for having one of the most affordable and profitable property markets in the world.

That being said, over 84 percent of real estate professionals expect Dubai’s real estate market to ramp up going forward, according to the 2022 EMEA Real Estate Report.

A brief throwback…

The start year of Dubai’s real estate market is considered to be 2002, when HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai declared freehold rights for owning property for non-nationals.

After this important step, the Real Estate Regulatory Authority (RERA) was formed in 2007. This resulted in a more regulated structure and facilitation in transactions and registration of properties in Dubai. Carving the way to off-plan registrations, Oqood was first introduced in 2008 as a way to control the developers’ obligations and responsibilities.

However, 2008 ended on an incredibly challenging note, with Dubai’s real estate market facing a global financial crisis and the property prices dropping significantly in just one year. During these tough times, the emirate remained resilient in an attempt to push past this difficult period.

Fast-forward to 2013 and 2014 – Dubai was back. These were prosperous years for the property market and the overall economy, with strong population growth and hundreds of new developments. As enthusiasm grew, businesses flourished and more international companies started seeing Dubai as a leading central hub. Impressively, Dubai had grown out of the crisis with no major roadblocks and was ready for a new era.

The Impact of Expo 2020

Almost two months after the world’s greatest show concluded, we can safely say that Expo 2020 had an enormous impact on Dubai’s real estate market.

Despite the challenges of the COVID-19 pandemic, the Dubai property market witnessed a remarkable recovery as an upward trend is noted in both the prices and demand for residential properties. According to a report led by Khaleej Times, this is largely due to the impact of Expo 2020.

Statistics reveal that 17,942 transactions worth AED 46.75 billion were recorded during the fourth quarter of 2021, signifying a growth of 63% yearly compared to the fourth quarter of 2020. Both volume and value of transactions remained the highest since the fourth quarter of 2013, mainly because of Expo 2020.

According to Zoom Property Insights, this upward trend will continue even longer. Both the ready and off-plan properties will remain high in demand in key areas as more foreign investors are expected to foray into the property market.

Ata Shobeiry, CEO of Zoom Property, also expressed that Expo 2020 has impacted the property market and other sectors of Dubai in a very positive way. “While the government initiatives and an efficient vaccination drive have helped the recovery of the property market, the role Expo 2020 played cannot be denied,” Shobeiry said.

Now that you know why… When? What? Where?

The truth is, real estate does not have a one-size-fits-all approach. Before thinking about when to buy, it’s all about finding the right project and having a strong strategy with the help of a reliable real estate agency.

Nevertheless, the previous analysis makes it clear that Dubai’s property market is in a very strong position today. After a strong recovery from COVID-19 and hosting the world’s largest show, all eyes are on Dubai for real estate investments. This will likely continue in the following years as the emirate shapes its futuristic “Dubai 2040” plans.

The “what” and “where” parts of the equation are largely made up of your investment goals. Choosing what and where to buy relies on what you’re looking for – if you want to invest in a home for yourself as opposed to a property for investment only. This decision will also be affected by your resale plan, whether that’s near in the future or farther away, it is important to investigate the project and the opportunities of reselling in the future.

Today, Dubai’s property market is still one of the largest ones in the world, with 2022 already being a promising year for even more growth. As an investor, you will likely have many more questions before choosing Dubai as the home of your investments, and that’s exactly what we’re here for. Whether you want more information or wish to have personalized advice, our real estate specialists have got you covered.

Allow us to guide you towards your successful investment journey. Contact us today: +971 50 195 2688

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