The recently released data reveals that the real estate market in Dubai city has witnessed a significant increase in property transactions. In February 2023, the number of property transactions climbed to 9,020 compared to last year, with 6,310 in February 2022, indicating a 65% increase in sales revenue, which generated over Dh26.7 billion. This property transaction surge is considered a positive indicator of the growing and stable property market. At the same time, this growth is due to high investor demand in the market, driven by several factors, whether attractive yields, stable market conditions, or government initiatives to boost the real estate sector.
Ata Shobeoiry, chief executive of Zoom Property, stated, “The Dubai real estate market is set to gain significantly because of the region's robust economic conditions, as well as its status as the popular preferred destination either for foreign investments or high-net-worth individuals (HNWIs) seeking to invest in real estate.”
The Dubai real estate market is one of the most dynamic and diverse markets globally, offering a range of investment opportunities across different sectors. The market has demonstrated resilience in recent years despite global economic uncertainties, thanks to the government's supportive policies and investment-friendly environment.
As per the 2023 Middle East Real Estate Market Outlook report released by a leading real estate consultancy, the economies of the GCC (Gulf Cooperation Council) countries are projected to continue experiencing relatively strong growth rates in the year 2023. This report provides valuable insights for real estate investors and stakeholders interested in the region's economic trends and potential opportunities in the real estate market.
There are several factors contributing to the surge in real estate deals in Dubai. Firstly, the market has experienced increased demand from international investors, who are seeking attractive yields and high returns on investment. Additionally, low-interest rates, coupled with a stable market environment, have made real estate investments more attractive.
Secondly, the government has taken significant steps to enhance the real estate market's attractiveness, such as implementing visa reforms and allowing for long-term residency for investors, retirees, and skilled workers. Furthermore, the government has announced plans to grant residency visas to property owners, which will continually increase the demand for real estate in the market.
The COVID-19 pandemic indeed has had a significant impact on the global economy, including the real estate market. However, the real estate market in Dubai has demonstrated resilience, continuing to attract investors and record growth in property deals. The government's proactive measures to contain the pandemic and support businesses have been an essential instrumental in ensuring the market's stability.
It is widely known that the Dubai real estate market offers a wide range of investment opportunities across different sectors, including residential, commercial, hospitality, and retail. Due to the market's attractive yields, coupled with the government's supportive policies and investment-friendly environment, make it a preferred destination for local and international investors.
Investors can choose from a variety of investment options, such as off-plan properties, ready properties, and rental properties. Additionally, the market offers a range of financing options, including mortgages and installment plans, making it easier for investors to acquire properties.
Moreover, the latest data from one of the Dubai real estate industries shed light on the evolving property preferences of both owners and tenants in Dubai's real estate market. The data reveals that 59.4% of individuals who aspire to own a property in Dubai prefer apartments, while others, about 40.6%, are inclined towards villas or townhouses.
In the rental segment, the data indicates that 80% of tenants are searching for apartments, whereas only 20% are looking for villas or townhouses. When it comes to long-term rentals, it is approximately 65% of tenants prefer furnished apartments, while only 33% prefer unfurnished units. In contrast, tenants who can afford to rent villas or townhouses tend to look for unfurnished units, with 55% of them searching for such properties and 44% seeking furnished villas or townhouses.
This valuable insight into property preferences provides crucial information for property developers and investors in Dubai's real estate market. It can help them make informed decisions about the type of properties to build or invest in and provide a better understanding of the current demand and trends in the market.
Scott Bond, the UAE Country Manager at Property Finder, said, “There is a consistent demand for housing in the region and a growing preference for property ownership. He also stated that 2023 had begun positively, with sustained momentum within Dubai's real estate sector. These remarks reflect the positive sentiment of the industry, with potential opportunities for property investors and developers in the region.”
The Dubai real estate market continues to demonstrate resilience, which perfectly attracts both local and international investors seeking high investment returns. The surge in property deals in the first half of 2021 is a testament to the market's attractiveness, driven by various factors, including stable market conditions, attractive yields, and government initiatives to boost the sector. Therefore, it is considered an ideal time for investors looking for investment opportunities in the real estate market as they can take advantage of the market's diversity and investment-friendly environment to achieve their investment purposes.
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