The real estate market in Dubai, the largest city in the UAE, is actively developing. This is largely because the Emirates 2021 became one of the first countries to open for tourism, which greatly increased the flow of tourists to the country as a whole and Dubai in particular. Investors from all over the world were actively investing in local real estate, earning passive income from renting it out. Let’s take a closer look at the topic of pricing in the region and how they have changed throughout 2022.
Why Consider Buying Property in Dubai?
The city is located on the shores of the Persian Gulf. There are more than 345 sunny days a year. It is among the hottest in the world. What could be more beautiful for a permanent life or an occasional vacation? For this reason, and not only, but real estate in Dubai is also in great demand. It is a developed modern city with an abundance of both domestic and international transport. From the local airport, you can get anywhere in the world without hindrance. Moreover, it is located within the city limits, so the transfer to the final destination can take no more than half an hour.
The government is worried about the growing popularity and development of the area. For this reason, they are doing everything to attract investors and foreigners. Consequently, the authorities have recently influenced the pricing of real estate to make it more acceptable for foreign investment. They are doing quite well. Another good thing is that there are no property taxes in Dubai. This also applies to both buying and selling. All you have to do is pay the registration fee. And that’s it. This is another gift from the leadership of the region.
Benefits of Buying Property in Dubai
Let’s make a deep understanding of why you should consider buying a property in Dubai through the following points:
UAE Property Visa
Depending upon your property purchase in Dubai, you shall become eligible to receive the resident visa. Some basic requirements should be matched first, such as the overall worth of your property should be a minimum of AED 1 million, and no mortgage should be there against your property. Additionally, it has to be completely residential.
Having a variety of options allows you to make better decisions. And when you are going to invest in Dubai’s real estate property, you have a variety of options to select from. The two major categories are:
- Residential Properties
- Commercial Properties
If you want to buy a habitational property, you can purchase any apartment or a villa. On the contrary, if you are planning to make a commercial purchase in Dubai, you have multiple options ranging from office spaces and labor camps to huge industrial properties.
No Property Tax
You all must be waiting to hear this as this always remains the topmost point of concern whenever anyone considers buying a real estate property. You will be glad to know that there is no property tax in Dubai, and do you know what it actually means? It implies that once you buy the property in Dubai, you pay the registration fee to the Dubai land department, and apart from that, there remains no other government tax left to be paid against the property you purchased.
What Do People Buy Most Often in Dubai from Real Estate?
It’s all an individual matter. Statistics show that real estate is in high demand among foreigners and locals. Moreover, whichever type of housing you choose, it will be modern and comfortable. Then it’s a matter of what kind of composition you choose to live in, what your priority is, and so on. Apartments are most often in demand among young people who have just arrived in the country, got a job somewhere in the center, and need mobility. If we talk about former residents of Dubai, of course, if the financial side allows, you can consider a home. This option is suitable for family life so that the children can usefully spend time on their lawn.
It is worth noting that many areas of the city have available kindergartens, clubs, and schools. There are places where such facilities are harder to find. There married couples do not take root. Almost all residents are used to living with cars. These can be either personal vehicles or rented ones. All because the quality of life and the financial component allows such purchases. It is also more comfortable than waiting in the heat for public transportation. For this reason, it is impossible to say unequivocally that something is more popular in Dubai. Apartments, houses, villas, and much more are freely available to buy.
Where were the biggest Rises in Dubai?
At the end of 2022, the cost of luxury real estate in Dubai has increased by 58.9% for the year. At the same time, the average cost of housing exceeded the same figure last year by 11.3%. This is a growing market that began its recovery during the pandemic. There has been an increase in prices, but they are still 30% below the 2014 peak, making it an attractive destination for investment. In addition, the Arab Emirates market offers excellent business and relocation opportunities, as the country has a favorable tax policy for investors and companies that are now relocating here.
Price growth rates vary depending on location: in premium areas, there is a rapid increase in the cost of housing. Notably, 32 homes priced at $10 million or more were sold in the first quarter of 2022, compared to 93 similar transactions in all of 2021, which at the time represented 39% of all sales in the luxury segment since 2010. Meanwhile, there were more than 52,000 apartment and villa transactions totaling more than $31 billion in the premium segment in 2021, more than the combined total for 2019 and 2020. In 2023, further price growth is expected in the premium segment due to a shortage of supply, experts predict.
Where the Prices Fell in 2022
But June last year made its adjustments to the overall picture. During this period, real estate prices fell by 0.31%. This was the first such event since the start of the year. Despite such indicators, most experts in the field agree that this will in no way affect further investments.
Such moments always come to the market of any sphere. So far, all factors indicate that the Dubai real estate market will be an attractive slice of meat for tourists for a long time to come. Dry statistics show that the number of transactions in June reached 8,865. This is commensurate with an increase of 38.8%. This figure is better compared to June last year.
To summarize, it is worth noting the attractiveness of the Dubai real estate market for investors. It is a treasure trove of opportunities. If you have certain resources and a desire to invest money, you should not consider any options. If you look at the statistics, the buying opportunity only increases over time. This demonstrates that the region is meeting the demands of customers. That’s a great thing.