Dubai has always been a hot spot for property investment owing to its luxurious lifestyle, sprawling skyscrapers, and tax-friendly economy. The Emirate has always witnessed a steady demand for real estate, attracting investors not just from the Middle East but from all over the world. However, with the ongoing pandemic, investors and property seekers are cautious and are taking a pause before making a big investment. In this blog post, we’ll take a closer look at the latest trends and forecasts for Dubai’s property market and whether it’s the right time to invest.
First and foremost, the introduction of Covid-19 in early 2020 has adversely affected the global real estate market. However, even during the pandemic, Dubai’s real estate sector displayed resilience and adaptability, emerging stronger. Despite the pandemic, the Government of Dubai continued its infrastructure expansion with the completion of projects like Dubai Creek Tower and Expo-2020. According to Property Finder Group, the market confidence index for Dubai real estate continues to demonstrate positive growth Y-o-Y, with the June 2021 index value being 150.5, an increase of 11.5% YoY.
Secondly, over the years, Dubai’s property market has undergone some structural changes that have made it a more stable investment option. Post the 2008 global recession, the Real Estate Regulatory Agency (RERA) was created, bringing about stringent guidelines that laid the foundation for a more mature and sustainable property market with regulations to monitor the sales process and purchasers’ rights. Additionally, with the launch of freehold property ownership, overseas investors can own a property in Dubai with 0% tax on rental income and capital gains, making it an attractive investment prospect.
Furthermore, experts predict that in the medium term, the Dubai real estate market will continue to see a steady climb, particularly for the luxury and high-end segments. The pandemic has redefined the need for spaces that support remote working and living, with prospects of owning premium properties in serene surroundings that offer safety, privacy and personal space being amongst the most sought-after. High-end communities like Dubai Hills Estate, Emirates Hills and Palm Jumeirah have witnessed an increasing demand from overseas buyers who are keen on acquiring luxurious villas and apartments.
Another trend that is emerging in the Dubai real estate market post-Covid 19 is the shift of home buyers’ preferences from apartment living to villas and townhouses. Dubai’s urban population, especially the Gen X and millennials, are opting for low-density communities, villas and townhouses that offer greater privacy and larger outdoor spaces. Such developments, such as Arabian Ranches, Al Furjan and The Springs, have witnessed a significant uptick in search volumes in property portals, resulting in a 91% YoY increase in villa and townhouse sales in H1 2021.
Despite the pandemic, the Dubai real estate market continues to showcase its strength and stability, making it an attractive investment option. With the government’s continued commitment to infrastructure development, transparency and regulations, overseas property buyers can invest with confidence. The market is returning to its pre-pandemic levels, with the luxury and high-end segments showing the most promise in terms of increasing demand. With the introduction of affordable mortgage schemes, rent-to-own schemes and long-term residence visas, Dubai’s real estate market is poised for continued sustainable growth.
Are you looking to invest in Dubai real estate? At Casaverse, we have helped numerous clients find their dream homes in prime locations across the Emirate. Whether you’re a first-time buyer or an experienced investor, we have a complete range of properties to suit your needs. Get in touch with us today to find out more!
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