Dubai Real Estate Back in Demand; Prices to go Up
The Dubai real estate market is gaining momentum as the emirate emerges from a Covid-19 induced slowdown and will stage a strong rebound in second half due to stimulus packages, visa reforms and strong demand from end-users and investors, experts say.
Leading developers, executives and analysts said residential segment has already bottomed out and offers good opportunities for developers on premium properties. They said prices for villa and townhouses have already registered an upward trend in past seven months and apartments prices are also expected to reflect the stable trend in second half.
New investors
Referring to latest data, he said entry of 8,000+ new investors into the Dubai property market during the first half despite the fact that the international travel and migration are at their lowest due to Covid-19 restrictions.
This is due to the first-class infrastructure built by Dubai; the strength and resilience of which has been wonderfully demonstrated during a global crisis. Dubai goes beyond tourism, leisure, and lifestyle; it’s a stable economy supported by constant improvement initiatives from the visionary leaders and the government bodies, Look at the most recent announcements such as immigration reforms, trade liberalization and 2040 masterplan, all are focused on making the city and the economy better for its people. Now all of this attracts fresh FDI and immigrants leading to surge in population, which increases the domestic consumption.
The benefits will be enjoyed by all industries but surely impacts the most for Real Estate, Retail and Banking industry ahead of others. Add to all of this, the increased impact of Expo2020 that shall be delivered later this year.
30%+ revenue growth
In its latest forecast, rating agency S&P Global also shared positive remarks on Dubai real estate and forecast more than 30 per cent revenue growth in 2021 on supportive market trends for real estate and a gradual recovery in other business segments.
We expect Dubai’s GDP to rebound about 3.5 per cent in 2021, followed by growth of 2.5 per cent in 2022,
While we think that structural oversupply in Dubai’s residential real estate sector will linger, we think that demand for good-quality, premium assets will support sales in 2021. We expect 30 per cent to 35 per cent revenue growth in 2021, from high demand for residential real estate in Dubai and recovery in other business segments, namely the retail and hospitality sectors.
Dubai Real Estate Back in Demand; Prices to go Up
Market resurgence
Dubai real estate market has witnessed a resurgence with prices appreciating slightly more than 10 per cent over the past seven months.
Year-to-date 2021 property prices emirate-wide for Dubai have increased 8.3 per cent and can be foreseen that appreciation will continue through the remainder of the year however expect rate of price increase to slowdown in the coming months.
Expo to boost confidence
The real estate outlook appears positive for the second half of the year especially with Expo 2020 just around the corner. The resale market is on an upward trajectory thanks to a steadily growing economy encouraging residents and citizens to move home to bigger and better options.
We also are seeing more people relocating or investing in a second home here in Dubai or the UAE due to the positive steps taken by the government to battle the Covid-19 pandemic. We have also seen a spike in the number of transactions for villas and townhouses, with a notable interest and high demand in waterfront or shoreline property.
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Why people are investing in Dubai real estate
- Safety and security
- Capital appreciation
- Modern-day lifestyle
- Tax-free, stable economy
- Excellent infrastructure
Dubai property is back in demand
* 8,000+ new investors entered into the Dubai property market in H1
* 30%+ Revenue growth for real estate companies in 2021
* 10%+ Increase in Dubai real estate prices since November
* 8.3% Average jump in Dubai properties this year so far
