Now the most desirable properties for buyers in Dubai and other emirates are villas and townhouses. Demand was formed at the beginning of the pandemic. In April 2020, prices for country houses around the world began to rise – people went into self-isolation and wanted to spend time in comfortable conditions, in their own or rented estate. The most sought-after villas, townhouses and apartments are in residential complexes along the coast of the Persian Gulf, like investment properties in Akoya Oxygen, Downtown and Bluewaters Island.
Growth of the Dubai property market
Why does the Dubai property market continue to grow, as evidenced by comprehensive expert reports for the 3rd quarter of 2022? Every month in the quarter showed amazing results of activity, which almost reached record levels.
Many experts identify three main factors that contribute to the steady growth of the real estate market.
- First, these are government initiatives aimed at attracting investors and visa reforms.
- Secondly, this is the economic growth not only of Dubai, but also of the United Arab Emirates as a whole.
- Thirdly, this is an improvement in market sentiment: buyers understand what they are paying money for and are confident in receiving a stable income from real estate.
In addition, it is worth considering the variety of offers from developers. Today, real estate in Dubai is sold out so quickly that developers after the completion of construction immediately announce the emergence of new projects. And, according to the assurances of most developers, they will be able to fully satisfy the demand of buyers.
Dubai is getting more luxury real estate
The segment of luxury real estate in Dubai is replenished with more and more new offers. Experts note that to date, more than 100 houses are being sold in Dubai, the cost of which exceeds AED 100 million. And according to many experts in the field of real estate, right now the luxury housing segment is at the peak of its development.
Today’s figures suggest that 2022 will be a record year for luxury property sales. In particular, this becomes possible due to the recent sale of a mansion in Palm Beach, the cost of which amounted to AED 280 million. There were also dozens of other transactions where property owners received over AED 100 million for the sale of their property.
It is worth noting that the rapid growth in demand for luxury homes became noticeable in the summer of 2021. This was facilitated by the world exhibition Expo 2020 and various changes regarding the visa regime. The government has developed exclusive measures to attract wealthy investors who have been able to see economic and business stability in the emirate.
And it was these wealthy investors who began to pay attention to luxury real estate, which is located in the most popular areas of the city.
The relevance of investing in villas for sale in Dubai
Many investors are considering buying property in Dubai to generate income and then live in the purchased property. And in this regard, villas are very profitable properties. Many experts believe that the gradual increase in prices for villas has become a fundamental factor for a steady increase in prices for all real estate.
As monitoring shows, the average cost of villas increased by 2.1%. At the same time, all areas of Dubai saw an increase in annual capital value, with the only exception being Jumeirah Village. According to current information, the largest annual price increase was recorded on the island of Palm Jumeirah, where the most expensive and premium real estate is located. Here prices, on average, increased by 21.2%.
The highest growth, in addition to Palm Jumeirah, was noted in areas such as Jumeirah Beach Residence, Burj Khalifa, The Views, The Greens and Akoya Oxygen. The growth was 16.3%, 13.7%, 11.2%, 10.3%, and 9.8% respectively. At the same time, experts note that in some areas the growth was very insignificant: these, for example, include Green Community West and Mudon, where the growth was 0.7% and 0.5%, respectively.
Real estate agency in Dubai
Do you want to buy property in Dubai for relocation, permanent residence or stable income? A team of professionals from the Ax Capital agency will help you not only find a suitable property, but also ensure the legal transparency of the transaction. Contact the agency and their experts will help you make the right choice.
