INFLUENCE OF TOURISM ON EMIRATE REAL ESTATE

The decision to keep Dubai open to tourism amid the pandemic, combined with low mortgage interest rates, attractive prices, the upcoming World Expo opening and strong demand from both local and foreign buyers, has given an extraordinary boost to the last months of the real estate market of this emirate.

Dubai authorities said that the value of real estate transactions recorded between January and June 2021 reached 61,97 billion Emirates dirhams (15,000 billion euros), with transactions increasing 51% and totalling 72 % compared to 2020.

The data for the first quarter shows exponential growth in the villa sector, with apartment volumes increasing by nearly 140% and witnessing an impressive 41% growth over the first quarter of 2020.

For the first time, the UAE Central Bank changed the loan-to-value ratio from 25% to 20%. It was then that the perfect combination arose between attractive prices and the lowest mortgage rates so far seen in the emirate.