Burj Khalifa, Palm Jumeirah, amazing sunsets over the Persian Gulf – every year more and more people fall in love with the luxury and beauty of Dubai, and decide to invest in local real estate. Investment property in Dubai Marina also remains among the profitable assets.
There are many reasons for the increased demand. Let’s understand why people are actively acquiring property in the emirate, and why buying an apartment here is a great option for living and investing.
The cost of real estate in Dubai is growing rapidly and, judging by the forecasts of experts, the peak value is yet to come, so buying a home today is a profitable investment in the future. Because of this, the eastern metropolis successfully competes with the largest European cities in the race for the attention of investors.
Why it is worth buying apartments in Dubai:
Before buying a property, you need to the reasons behind your purchase and the goals you want to achieve with it. When choosing a property for yourself, you can be guided solely by personal wishes.
If you want to make money by renting out, you need to focus on the preferences of potential tenants. It is worth evaluating the area, type of property, number of bedrooms, transport accessibility, and infrastructure.
The best option for renting out is one-bedroom apartments. The city has a large number of visitors who prefer small apartments. Singles and young couples do not see the point in overpaying for several rooms and luxury conditions. Apartments are the most popular and cost-effective option.
In 2023, the property market in Dubai is seeing a surge and is becoming a popular destination among foreign investors. The sale of property in 2022 saw a three-times increase, almost 87,000 transactions, breaking the previous record of 80,000 set in 2009. There has been almost $57 billion worth of property being sold, which is 80% more than in 2021.
The hype is understandable: many investors consider foreign property as a way to save their money, and even multiply, earning on the resale and rental of both compact studios and apartments and luxury villas.
Consumer demand was also influenced by the loyalty of the UAE authorities to visitors from other countries, as well as comfortable conditions for life, work, and business.
According to a report from the DLD, the cost of 1 square meter in residential properties in 2022 increased by more than 33%. About 60% of transactions were related to the purchase of finished housing and 40% – were at the construction stage.
Most often, foreigners choose apartments: about 70% of the total number of transactions fall on their share. Next in demand are villas and commercial premises.
The most popular areas are Dubai Marina, Downtown, and Damac Lagoons. Investors often purchase several apartments at once, e.g., they buy an entire floor in one building. This is beneficial because you can earn money at several stages at once – sell one part of the apartments at the construction stage, and the other – after the building is put into operation when the cost increases.
Investor interests change with the market. Despite the prestige of some areas, in 2023 buyers of real estate in the city began to pay more attention to the areas of Business Bay, Dubai Marina, and Jumeirah Village Circle.
The Dubai real estate market has begun to attract even more super-wealthy people who prefer to “develop” new areas, buying more profitable real estate in terms of prospects. And the widespread growth in sales in each area is becoming a serious incentive considering the overall development of the real estate market.
Experts claim that the rise in property prices in the Emirates will continue to increase throughout 2023. One of the logic behind this is the speedy increase in the cost for the first quarter of this year. Developers providing exciting offers on new projects also contribute to the surge in demand in real estate segments.
This year investors will be attracted to the property and so experts claim that the demand will not fall. Rather it will increase by 3-5% compared to 2022. Investors are mostly interested in the long-term perspectives of earnings. Since UAE is an economically stable country, the value of real estate will shoot up. There are high chances that if you buy an apartment today, a few years down the line it will be sold for at least 1.5-2 times more expensive.
Also, a drop in demand for real estate is not expected due to the variety of proposals: more and more housing is being built in Dubai, both budget and luxury. Those who wish can find housing to match any taste and financial possibilities. Today, the emirate offers about 35 thousand housings in different price ranges, and in the coming months, this figure will only increase.
Don’t put off shopping for tomorrow, start earning today! Visit Dubai-Property.Investments website to find out about the hottest deals on the market and find the perfect investment housing for yourself.
