Real Estate Market Growth and Trends

Real Estate Market Growth and Trends

The UAE residential real estate market is categorized into Villas or Landed Houses and Apartments or Condominiums — and key cities including Sharjah, Dubai, and Abu Dhabi.

This article will focus on the top property hotspots and investment trends in Dubai’s post-Expo property industry. 

According to the CEO of MAF Communities, Dubai’s villa sector will continue dominating with places like District 2020, Dubailand, and Dubai South getting traction.

The residential property prices swelled by 10.6 % in 2021 in Dubai and further increased by 2.6% during the first three months of 2022. 

It is the highest annual growth rate since 2015 which shows that Dubai’s real estate sector is booming. Real estate professionals should start using efficient real estate management software. 

Dubai’s Property Sector is Thriving

New customers are increasingly turning to the real estate market. More than two years have passed since the authorities implemented a lockdown in the city. 

After global lockdowns, businesses were uncertain and worried about the future. The property developers in the Emirates were no different.

Fortunately, Dubai moved through that anxious period in a careful yet sustainable way and property developers also took a cautious approach. 

Many property developers switched to developer CRM software because they needed a digitally integrated platform to bring all team members and buyers to one place.  

The secondary market prices were at an all-time low six years before covid. The sectors directly influenced by the pandemic fired some of their employees in the wake of the lockdown. As a result, the secondary market prices increased for a short period.

Though it was not a regular industry, the atmosphere wasn’t suitable for new ventures. Here are some of the latest trends in the real estate industry since the pandemic hit our planet. 

More End-users

Dubai’s property sector saw more end-users. Tenants were searching for more space. Also, mortgage rates have been at all-time lows since Covid-19 changed our lives.

Owning a house became more manageable. As property prices return to normal from all-time highs in the last year, buying a home will remain more viable.

Foreign investors will keep recognizing that ─ pegged against top international cities — gross rents in Dubai are thought of as powerful even when the market is down. The average rental returns in the Emirates range between 4 to 5 % net.

Additionally, the city has low freehold real estate entry points, mortgage rates, and increased capital appreciation. These aspects make Dubai a default investment destination.

The real estate management software solutions have been helping property developers and realtors to streamline their operations in these busy times.

Demand for Lavish Properties

 Many affluent people with high net worth moved to Dubai to benefit from its infrastructure as Covid-19 compelled governments all over the world to restrict travel and implement lockdowns. 

Resultingly, the luxury real estate market thrived in 2021. The luxury villa segment showed significant growth as prices ballooned by 16.5 % year over year. It saw a record of more than 54 villas that did business of over 10 million dollars by September 2021.

Covid-19 cases are still reported so companies will keep running on a hybrid model. Resultingly, customers will still need provisions, amenities, and space to feed, look after a family and work remotely in communities that give facilities without sacrificing bonding.

Responsibility for a Sustainable Future

Governments, organizations, and people alike are becoming more and more considerate of their environmental responsibility. Buildings in big cities contribute about 40% of global carbon emissions.

Real estate agencies should use sustainable solutions for property development. And governments should enforce laws and rewards to make sustainable development projects more attractive — as per UAE’s resolve to attain net zero by 2050.

Macro Trends in Dubai Real Estate Industry

Dubai city has been thriving economically in a lot of ways. To encourage more foreign direct investment, the authorities have started many initiatives and reforms during the last few years.

The Emirates initiated the Golden Visa (the 10-year visa) to enable foreigners to reside in the city for the long term, thereby retaining the top talent in the country.

Moreover, the Dubai government has introduced reforms revolving around the ownership of corporations in the city without a local sponsor. This step has helped propel economic growth.

The United Arab Emirates has shifted the official holiday from Friday to Sunday. This historical decision has strengthened its transport and trade sectors as well as its position as an economic hub and a tourism hotspot.

Experts expect that the population will grow at a record high rate because a new high net worth population is moving to Dubai permanently. It will drive the already accelerated growth even more in all industries.

Bottom Line

New trends offer direction on the focus of the 2022 real estate market. The prediction for the upcoming five years is about the community-driven sustainable developments performing the major role as Dubai and the world try to achieve worldwide sustainability goals.

Leave a Reply

Your email address will not be published. Required fields are marked *