Changes in buying behavior affect the Dubai property market

Changes in buying behavior affect Dubai property market

The real estate market of the United Arab Emirates could not exist beyond the world’s problems. The pandemic has affected the property market less than other regions. Since the outbreak of the epidemic, the cost of apartments in Dubai has fallen. However, in the last quarter of 2020, the situation began to change. There are many reasons for this. The official housing website Emirates. Estate will try to figure out what is happening with real estate in Dubai and whether it is profitable to invest money in it.

Why it is worth investing in real estate in Dubai

There are several reasons for this:

  • Stable economic growth in the country. And although the UAE is often associated only with oil, the authorities managed to prove that the policy is successful. This also applies to the promotion of doing business in the country thanks to a special tax system. The conditions are attractive for those who buy a property in Dubai without being a resident of the UAE.
  • Security. Crime in all its forms has been eradicated in the country, so the UAE is considered not only by tourists, but also by those who plan to move to a permanent place of residence. This creates a demand for real estate.
  • Affordable prices for apartments in Dubai. To talk about housing of a similar area in other major European cities, prices in Dubai are many times more profitable. The quality of infrastructure and the standard of living are superior to those existing in other one million-person cities by a number of factors.
  • High profitability. Investing in real estate in Dubai pays off. You can read more detailed information about current prices on the official website

Housing market statistics

Compared to 2020, the total volume of real estate transactions has almost reached the level of last year. If for the whole of 2020, real estate was sold for about $ 19 billion, then only in the first half of 2021 this amount has already reached $ 13 billion. 

If in previous periods studio apartments and apartments for investment in Dubai were very popular, now more and more often this emirate is chosen by those who are looking for a comfortable direction to move to a permanent place of residence. Over the past period, the popularity of villas and townhouses has increased by almost 200%. People want to feel safe from viruses, reducing communication with strangers.

Why buyers choose apartments in Dubai

Because it is profitable. The state takes a wide range of measures to attract investment capital from outside the country and facilitates both the transaction procedure and residence in the UAE. For citizens of other countries, it is worth reading the information about the main features of living and buying real estate in Dubai:

  • Citizenship is not required to buy an apartment or villa in Dubai. The state has established free zones in which expats can buy housing and dispose of it by will.
  • There are no taxes. You can buy a convenient studio or a spacious mansion and pay nothing for the right of ownership. This also applies to investment property in Dubai: the rental of housing is not taxed.
  • In connection with the pandemic, the state has provided for online real estate transactions. If you use the services of qualified specialists, this way is also possible.

Flats in Dubai: prices in 2021

When searching for the desired property in Dubai, it is worth starting not only from the available budget, but also from the desired infrastructure of the community. The more developed and popular this area is, the higher the prices are. As for the districts, it is worth considering the cost per square meter. In this case, you can see similar average results:

  • City Walk – $ 4100.
  • Downtown Dubai – $ 3,800.
  • Dubai Hills Estate – $ 3,400.
  • Palm Jumeirah – $ 3,200.
  • Dubai Marina – $ 3,100.

The final price directly depends on the district. It is obvious that if a studio apartment with an area of 70 square meters, which costs an average of $ 35,000, cannot compete in price with a villa where there is a land plot in addition to 1000 or more square meters of living space. The most expensive are detached buildings: cottages, villas, townhouses and penthouses. The pricing policy can reach $ 1 million or start only with this amount.

How does buying behavior affect the Dubai rental market

Properties in Dubai are often bought as an investment package. There are several advantages: the cost almost does not fall, and the demand grows, which provides liquidity. On the rental side, the prospects may change. The state seeks to regulate the housing rental market, and therefore long-term rentals may be less profitable compared to short-term ones. The law regulates the prohibition of rent increases for a period of three years or more.

Expected prospects

Demand creates supply. According to experts, this is due to a number of points:

  • The EXPO exhibition is expected in the community. Due to the pandemic, it was postponed, but there is no doubt that this will have a significant impact on the business activity of the region.
  • The pace and regions of development are potentially declining. The central districts of Dubai already have a developed infrastructure, and there are a lot of modern buildings on their territories. Not every community located in the central part, and not in the suburbs, will have a free place for buying new residential complexes. 

Together, these measures will increase demand and prices. The latter could rise to 3.5% by the end of this year and entail at least another 2.5% next year.

Emirates.Estate is your professional help in analyzing market offers

When planning investments in foreign real estate, it is sometimes difficult to understand the situation and how profitable the offer is. Processing the transaction raises more questions, because it requires knowledge of local legislation. Trust the professionals – the Emirates.Estate specialists will help you find answers to any questions. You can start choosing the desired property via the Internet.

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By Michael Caine

Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.

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