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However, property prices are still a quarter below the previous peak. The local market recovery is now in its 11th month. The previous price peak was in 2014, and 2021 is only a quarter of the former record. In the first days of Expo 2020, the positive effect of the exhibition on the real estate sector of the emirate became obvious, which met the high expectations of both the government of Dubai and the UAE, as well as analysts. The senior executive director of Property Monitor, Zhann Jochinke, points out that at the moment there is about 19% growth left to record. In September, prices have already increased by 1.2%, the cost of one square meter has become $2,837. Recovery after COVID-19 is also noticeable — 100 cases per day. However, prices have been increasing for several...

The market grew by 68% by 2020 and by 71% by 2019. Since the first quarter of 2021, the mortgage sector has been growing exponentially. The first three quarters significantly exceeded the figures for the whole of 2020, according to the data from Mortgage Finder’s independent mortgage consulting (Property Finder Division). Moreover, 83% of mortgage transactions were made by first-time buyers in the UAE market. These are new consumers and investors. In addition to low mortgage interest rates, deposits were also reduced by 5% by 2021. For citizens of the United Arab Emirates, the deposit is now 15% of the loan, and for non-citizens — 20%. It has also contributed to the positive growth of this segment. The effect of a democratic credit policy is visible in the example of...

New buildings showed a V-shaped recovery, says the consulting agency CORE. The sharp recovery is due to increased investor confidence in the Dubai market. The trend is expected to continue in the coming months. The influx of visitors to Dubai stimulates the sector growth due to Expo 2020 and many new projects this year. According to the information provided by the Property Finder portal, the total value of real estate transactions in the new construction sector increased by 47.11% in the 3rd quarter of 2021. The comparison was completed by the second quarter of 2021. The segment of finished real estate (secondary market) has increased only 4.24% in the value of transactions. Growth in the primary market was 14.67% and in the secondary one — 6.02%. Several new projects have...

A study conducted by the Swiss International Bank UBS shows that all the 25 largest real estate markets showed an average increase in the risk of creating a price bubble. All except Dubai. The emirate market is undervalued and has the lowest risks of a price bubble. The UBS General Investment Office provided such data. Overall, property prices continue to fall, making the purchase of real estate affordable. Low mortgage interest rates, high oil prices, and a general recovery contribute to this situation. Despite the record expansion of the real estate market, the total number of new projects this year has also declined, which has had a positive impact on the chronic oversupply of housing in Dubai. The average risks of price bubbles are growing in all major real estate markets and...

The Swiss bank UBS points out that Dubai is the only real estate market in a lower category than last year, according to the Global Real Estate Bubble Index 2021. The report indicates that high oil prices, a simplified mortgage process, housing affordability, and the general economic recovery make the real estate sector grow. Before the pandemic, low oil prices and oversupply in the real estate sector led to a prolonged market decline. The coronavirus restrictions in 2020 worsened the situation: the economic activity declined, many people lost their jobs and left the UAE, leading to a further imbalance in demand and supply. These factors have led to a general drop in prices and rents of residential and commercial properties. However, many companies, tourists, expats, and foreign...

Cumulative sales reached $ 4.07 billion, off-plan real estate is showing record highs of deals, and the capital value of a third of the apartment segment has declined over the past month. Data is provided by ValuStrat and Property Finder. The capital value of villas in Dubai continues to increase in line with strong demand. ValuStrat reports double-digit numbers. For example, the capital value of villas has increased by 22%in the Arabian Ranches area. The average increase in capital value for both villas and apartments in August increased by 6.3% compared to July, and by 1.5% compared to August 2020. Currently, the capital value of residential real estate in Dubai is estimated at an average of $ 435,000 per property or $ 9,354 per square meter. In addition to Arabian Ranches, the...

SmartCrowd, an investment crowdfunding platform regulated by the government agency DFSA at DIFC, has lowered the minimum investment amount from $ 545 to $ 136. SmartCrowd is a crowdfunding investment platform that works on the principle of collecting investments from its members, investing the collected funds in specific projects and proportionally distributing income among investors. The platform is available for UAE citizens, expats, business investors and tourists. It was formed in 2017 and became a fully legal project under the leadership of DFSA in 2019. At the moment, the project has distributed about $ 354,000 among its participants. This is a young project and the decrease in the rate from 545 to 136 dollars for deposits is a step towards the website popularization. The...

This is the best monthly indicator since January 2017. Dubai real estate market registered 5,780 real estate sales transactions totaling $ 4.07 billion in a month. Thus, since the beginning of 2021, there have been totally 37,537 transactions in the emirate with a total amount of $ 23.9 billion, according to the Property Finder portal. In terms of transaction volume, we can see an increase of 22.61% from $ 19.5 billion in 2020. 55% of the transactions made to date were concluded in secondary real estate market. Naturally, 45% fell on the off-plan real estate market (note:objects under design, construction or new construction). Linnett Sacchetto, Director of Research and Data at Property Finder, says: “These numbers are a strong testament to the strength of Dubai market,...

By virtue of restoration of international travel and the UAE’s effective action against the Covid-19, the emirate witnessed substantial growth in capital values for luxury homes According to global real estate advisor Savills, Dubai’s prime residential properties market saw a 4.2% increase in capital value growth in the first half of 2021. Across the rest major 29 cities in the Savills World Cities Index, capital values advanced by 3.9%, marking the fastest pace of growth rate since December 2016. Along with Cape Town, Moscow and Lisbon, Dubai was among the best destinations for remote workers. This resulted in growing demand for bigger homes.   “The return of international travel is likely to provide an increased supply of buyers for prime...

Prices for residential properties are projected to rise by 3% and 2.5% in 2021 and 2022, respectively. Previous estimates suggested a 1.1% and 2.8% rise According to Reuters survey, property prices are likely to remain within affordable limits. However, they are forecast to continue rising steadily over the next few years. Figures from Dubai Land Department also confirm the continuing increase in property sales in the emirate. The changing trend is mostly attributed to the successful nationwide vaccination program launched in the UAE in early 2021. In a Reuters poll conducted on August 11-19, 11 analysts upgraded their growth forecast for property prices to 3% and 2.5% in 2021 and 2022, respectively. This is up from the estimates released three months ago that showed...

Out of 30 cities in the Savills World Cities Index, Dubai was ranked the third in terms of the highest rental rates in the first half of 2021, after Miami and Moscow Savills, a world’s leading real estate advisor, released a report on an average increase in rates and yields of luxury property rentals based on the results of the first half of 2021. Miami was on the top, followed by Moscow and Dubai. However, average rents across the 30 cities in the Savills World Cities Index recorded a 0.5% increase, following a 1.8% decline in 2020 due to global travel restrictions. Weighed by a substantial oversupply amid the unending construction of new properties in the Dubai market, rental rates had been gradually declining over the past 6 years. The sector was the hardest hit in 2020,...

Rental rates in mid-priced and prime locations are growing due to limited supply and high demand from ultra-high net worth individuals (UHNWIs). Residents continue to seek bigger homes. While the villa sector saw the largest growth, luxury apartments were also in demand. In the near future, it is expected that rents will continue to increase in the areas below. Villas: Palm Jumeirah, Emirates Hills, The Springs, The Meadows, The Lakes and The Arabian Ranches. Luxury apartments: City Walk, Downtown Dubai, Dubai Marina and Palm Jumeirah. According to CORE real estate consultancy, the increase was uneven, ranging from 3% to 15% year-on-year. Meanwhile, property management experts at Asteco released a report for the second quarter of 2021, which showed that Greens, Business Bay and Dubai...

The second quarter of 2021 brought recovery in the market. However, growth was uneven. Some segments strengthened, others hit all-time highs, while a few ones recorded slight declines. Average apartments rental rates rose by 3% during the April to June period. Meanwhile, average villa rents jumped by 8%. On a yearly basis, apartments rents dipped by 3%, while those for villas advanced by 10%. There was an increased demand for more spacious properties. The greatest portion of interest came from people working from home and interested in a comfortable workspace.   Rents in Dubai’s popular areas, such as Dubai Marina and Jumeirah Beach Residence, increased slightly, while villa rates in The Arabian Ranches and Victory Heights saw a double-digit increase.   Analysts find...

Thanks to its successful fight against COVID-19, the city’s attractiveness has grown significantly since the beginning of the outbreak. By late June 2021, the emirate’s residents had a combined net worth of $544.5 billion, up by $39 billion from the same period last year. According to the New World Wealth report unveiled on August 25, total wealth in the city of Dubai amounted to $530 billion by the end of June 2021. In June 2020, it came in at $491 billion. The emirate’s remarkable success against the Covid-19 pandemic has been the major driving force of the growth. Dubai’s high net worth individuals (those with at least $30 million in investable assets) saw the fastest pace of wealth growth. They purchased various properties...

Among the developers, Emaar Properties showed itself best of all, having sold 20.4% of all sold villas on the market. According to the analysis by ValuStrat consulting agency, the villa sector in Dubai has shown the best annual capital growth in the last 5 years. Real estate sales in Dubai have been on a growing trend since the end of last year, when quarantine restrictions related to COVID-19 began to gradually ease. However, in July there were completely fewer transactions than in the previous months of 2021, which was affected by the Eid al-Adha holiday that lasted for a week. The growth in demand is equally driven by both international and local buyers and investors. Residential real estate in the most popular areas of the city in July 2021 showed double-digit growth rates. Thus,...