In 2022, Dubai’s real estate market recorded over 86% of real estate sales, breaking the best sales record of 2009. The total value of transactions amounted to AED 538 billion ($143.8 billion). This figure was 76.5% higher than the results of 2021.
- What is going on?
- What awaits the Dubai real estate market in 2023?
What is going on?
The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, said that the results achieved in real estate sales are fully in line with the desire of Dubai’s ruler to make Dubai one of the three best megacities in the world and double the emirate’s economic indicators by 2033. Other reasons for the strong interest of foreign investors in Dubai property include:
- An unstable political situation in Europe.
- Affordable prices for modern housing.
- Loyal visa policy and expansion of opportunities for obtaining a UAE resident visa when buying real estate.
The number of foreign investors has doubled since 2021. At the same time, not only finished real estate is in the spotlight. An increasing number of buyers prefer to invest in off-plan projects, which open up the opportunity for significant savings.
Russian citizens are leading among foreign investors
Russians topped Dubai’s top five buyers in 2022, surpassing investors from the UK, India, Italy and France. Analysts note that the increased interest of Russians in investing in the UAE housing stock came with the beginning of the situation in Ukraine. The UAE does not support sanctions against Russia, so Dubai real estate provides economic stability of investments.
What awaits the Dubai real estate market in 2023?
Experts believe that the interest of Russian investors in Dubai real estate will remain for at least the next 6 months. This is facilitated by:
- The confidentiality of transactions and the ease of money transfer. The UAE does not require to explain the origin of the money spent on purchasing housing. At the same time, funds are easily transferred from most banks. Payments are possible not only in cash, but also in cryptocurrency.
- A high return on investment. While housing prices are steadily rising, investments in off-plan properties remain particularly beneficial.
- Economic growth and stable rent growth due to the increasing flow of emigrants.
- No taxes on personal income. You can rent out an apartment and get a net profit.
Dubai’s real estate market is expected to continue its upward trend, so it is more profitable not to delay the decision to invest in housing. This confirms the fact that most of the major projects of popular developers are literally "snapped up" in the first days of sales. At the same time, buyers are actively purchasing both budget studio apartments and luxury villas or penthouses.