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Dubai’s Real Estate Market since 2020
After the Covid pandemic in 2020, the real estate market in Dubai has dropped significantly. Due to the shutdown of all of Dubai, the situation went harder.
Companies, restaurants, and all facilities were shut down during the Covid pandemic like anywhere else in the world. However, Dubai was different from other countries and here is why.
Almost 80 per cent of the population in Dubai are expats and foreigners living and working in Dubai away from their home country. When the Covid pandemic hit, the income situations for these expats changed. The real estate news went into a decline as well.
Some companies reduced their employees’ salaries up to 50%, and some couldn’t give salaries at all. When the expats in Dubai stopped receiving salaries, they couldn’t pay their rent, and those who have home loans have also stopped paying their loans due to reduced to no income from their companies. As a result, Dubai’s real estate market has dropped, and all Dubai properties have dropped in rent value.
Another reason was that investors who deal in property investing in Dubai have also stopped their buying, selling, and leasing activities due to the Covid pandemic, resulting in a decline in Dubai’s real estate market.
Dubai’s Real Estate Market After The Covid Pandemic – 2021
Real estate in Dubai surprised almost everyone after the Covid pandemic finally ended, and almost everything went back to normal. In 2021, Dubai properties rose again, and moreover, they have even increased in value.
A financial, real estate study in 2021 came, comparing Dubai’s real estate market from 2020 to 2021. The study showed an increase of 74.77 per cent in sales transaction volume and an increase of 110.19 per cent in value. Compared to 2019, last year showed an increase of 55.47 per cent in volume and an increase of 90.10 per cent in value.
The real estate market conditions in 2021 were a blast in Dubai’s real estate market history. Furthermore, the real estate news is getting better and better in Dubai. Encouraging more investors and buyers to Dubai’s real estate market from all over the world to invest in Dubai properties.
Real Estate Market In UAE since 2022
Since the last quarter of 2021, the UAE real estate market has already experienced record-breaking growth. In Dubai, for example, property sales have doubled in value in the past year and have broken a 12-year record.
According to more than 80 per cent of property professionals surveyed over the past 12 months, the UAE’s real estate market will grow faster in 2019. According to global real estate brokerage Berkshire Hathaway HomeServices‘ 2022 real estate report.
In the first half of 2021, Dubai recorded over 52,000 apartment and villa real estate transactions totalling Dh114.2 billion, more than the combined total for 2019 and 2020. Moreover, in Abu Dhabi, about 15,000 property transactions worth 71.5 billion dirhams were recorded last year.
Outlook To The Real Estate Market In Dubai
Leading real estate experts in Dubai predict that improving demand will keep property prices in Dubai stable shortly.
Experts noted that the Dubai real estate market is on the verge of a recovery at the Dubai Real Estate Forum organised by MEED and Mashreq.
According to a senior financier, Dubai’s real estate sector remains the bellwether for the local economy, supported by legal reforms, quality of life and especially the successful response to the Covid-19 pandemic.
As a result of price improvements recorded since mid-2021, Dubai is now considered a safe haven for investors.
During the year, home prices and rents increased by 9.3 per cent and 8.3 per cent, respectively, according to real estate consultant CBRE. A report by S&P Global Ratings predicts that rent and price increases will continue in 2022.
Impact of Expo 2020 On the Real Estate Market In Dubai
Expo 2020 Dubai has stimulated real estate growth. It positively affected the real estate market in Dubai, especially with short term rentals.
Short term rentals are Dubai properties leased for a short period of time, usually days to weeks. Unlike the residential apartments, which are rented yearly for long term accommodation.
Luke Capital Group provides property management services for all landlords by managing their property as a short term rental, increasing their property income and removing the hassle of managing their property. From A to Z, the property managers of Luke Capital Group will handle all property operations and upgrade it to the best holiday home that guests want to book again and again.
Short term rentals are serviced accommodation designed for people who would like to stay in a home away from home. Usually, tourists and business travellers seek short-term rentals listed on online booking platforms, such as Airbnb, Luke Stays, and Booking.com.
During Expo 2020, many tourists and business travellers booked these serviced apartments instead of booking in hotels, which also boomed the short lets industry.
In the UAE, indicators broadly suggest that economic growth gathered pace in 2021. The Expo [2020 Dubai] has helped stimulate growth, with hotel occupancy and residential real estate prices climbing – we expect this to continue positively impacting the property market in 2022.
Insights and Statics Of Dubai Real Estate Market
The analysis from market tracker service Property Monitor shows that January 2022 recorded the highest price appreciation since August 2021, in tandem with monthly transaction volumes growing by 2.1 per cent. Residential segments, including villas and townhouses, saw a steady rise in demand since 2021.
Let’s look at some of the prices of the Sales and Rentals in 2022.
The image above shows the sales prices of the residential apartments in Dubai for March 2022. You can see all the areas and districts in Dubai, so you know which area is higher in price and demand.
The image below will show the residential rental prices of all areas and districts around Dubai. It shows every area how much approximately is the yearly rent price.
For more insights on Dubai’s real estate market, visit Property Monitor.
What Does The Future Hold for Dubai’s Real Estate Market
According to research from global real estate consultant Knight Frank, villas are expected to represent only 15 per cent of all new residential homes coming to the market between 2022 and 2025. It was clear from this that villas continued to outperform apartments.
Dubai-based property consultant Core reports that 37,000 residential units, including 5,900 villas, were delivered in Dubai in 2021. As of January 2022, Core predicted a similar volume of brand-new units would hit the market, but revisions will be made based on changing market conditions.
Cyril Lincoln, executive vice president and global head of real estate finance and advisory at Mashreq Bank, “the demand trend will continue, and property prices will help boost profits.” “But it could give way to shortages in prime segments while keeping prices elevated in the longer run.”