The political and economic stability of the United Arab Emirates makes this one of the most attractive countries for investment and permanent residence. The increased demand for real estate in Dubai and other emirates has recently been driven by strong buyers' confidence in the country.
As soon as the international borders were opened, wealthy investors saw the high quality of life in the UAE and the successful overcoming of the consequences of the pandemic. This led to an increase in sales of expensive real estate.
- Reasons for the Growth of the UAE Housing Market
- Market Statistics for 2021
- Top 10 Countries by the Activity of their Citizens in the UAE Housing Market
- Market Situation in January-May 2022
Dubai, as the most successful of all emirates in economic and technological terms, demonstrated the extremely rapid growth of the real estate market in 2021-2022. In the first quarter of 2022, total sales in Dubai reached 17,896. In March 2022, the annual increase in housing prices was 15.3%.
The price increase has been recorded for the 14th consecutive month.
The reason for this was a set of factors, including:
- Favorable economic conditions in Dubai and the UAE against the backdrop of an unstable political situation, globally.
- Change and simplification of visa policy for foreign nationals.
- Reduction of the minimum cost of buying real estate for obtaining a long-term resident visa.
- Allowance made for foreigners to open a business in the UAE without attracting an Arab sponsor.
This brought the UAE a safe and profitable economic paradise and expanded the audience of foreign property buyers.
Dubai recorded 84,772 property transactions in 2021. 52,415 made by investors. Total cash sales amounted to AED 300 billion ($81.6 billion; ¥543 billion).
According to the Dubai Land Department (DLD) annual report, real estate transactions in the emirate increased by 65% in 2021, and property values increased by 71% compared to 2020.
Despite the consequences of the pandemic, the United Arab Emirates continued to develop. The government has proven its effective measures in the fight against COVID-19 and its consequences. While housing demand is declining in other countries, it continues to rise in the UAE.
Experts say that in the last two years, investors have preferred to invest in real estate, which has a large scope and offers many amenities to ensure a high standard of living, for example, in villas in Dubai. Increased demand has pushed up the prices of premium real estate, especially in Palm Jumeirah and Emirates Hills.
In 2022, the main group of home buyers in the region are European citizens. Wealthy Europeans, spurred on by the unstable geopolitical situation in Europe, are looking for a profitable and reliable place to invest, and find it in the UAE.
The top 10 countries, representatives of which have shown the highest purchasing activity in the UAE housing market since the beginning of 2022:
- Great Britain.
More than 20,000 of the 26,000 real estate transactions in Dubai in the first quarter of 2022 were residential properties. During this period, there was a sharp increase in the business activity index caused by the influx of new investors into the emirate's small and medium-sized business sector.
Due to the increased demand, the supply on the market was rapidly declining, and prices were rising. For this reason, buyers have focused on the secondary market, where there is sufficient ready-made real estate available at lower prices than in fashionable new buildings. In the second quarter of 2022, secondary housing transactions accounted for 58% of total residential property transactions, while the remaining 42% of sales were registered in the primary market.
Simultaneously, the demand for the most expensive luxury housing has increased in the country. An increasing number of foreign nationals want to buy villas and apartments in Dubai in new luxury projects.