As we move into the new year, the real estate market in Dubai is still showing vital signs of growth and stability. Despite concerns about a potential global economic slowdown, the Dubai real estate market remains one of the most sought-after investment destinations in the world.
According to research from JLL, the average price of residential properties in Dubai increased by 5% in 2018, with luxury prices rising by 7%. This trend is expected to continue in 2019, with prices predicted to rise by a further 3-5%.
This sustained growth is being driven by a number of factors, including population growth, limited supply of new developments, and an increase in demand from buyers from across the globe.
If you’re thinking of investing in Dubai property, here’s what you need to know about the latest market trends and what to expect in the coming years.
Population growth is one of the key drivers of growth in the Dubai real estate market. The city’s population is expected to reach 4.9 million by 2020, an increase of 2% from 2018. This is being driven by a number of factors, including increased business opportunities and a favorable tax regime.
This population growth is having a direct impact on the demand for residential properties, with buyers looking for both apartments and villas in sought-after locations such as Downtown Dubai and Dubai Marina.
Limited Supply of New Developments
The limited supply of new developments is also fuelling price growth in the Dubai real estate market. Developers are cautious about launching new projects due to the current oversupply situation and this is likely to continue in the short term.
This lack of new supply is leading to increased competition among buyers for existing properties, which is resulting in price growth.
Increased investor confidence
Investor confidence in the Dubai real estate market has increased in recent months, with a number of high-profile investment deals being completed. This includes Emaar Properties’ $1.2 billion joint venture with Dubai Holding and Meraas Holding’s $5 billion investment in the tourism sector.
These deals are a vote of confidence in Dubai’s economy and its future growth potential, which is having a positive impact on the real estate market.
Improved mortgage options
There have been a number of positive developments in the mortgage market in Dubai, making it easier for buyers to finance their purchases.
A number of banks are now offering longer repayment terms of up to 25 years, making monthly repayments more affordable. In addition, a number of banks are now offering fixed-rate mortgages, which gives buyers greater certainty when budgeting for their purchases.
These improvements in the mortgage market are making it easier for buyers to enter the market and are helping to drive demand.
What to expect in 2022?
Based on the current trends, we expect the Dubai real estate market to continue to recover in 2022. Prices are expected to rise as demand continues to grow.
The mortgage market is also expected to continue to improve, making it easier for buyers to finance their purchases. We expect banks to offer even more attractive mortgage deals in the coming year.
If you’re considering buying property in Dubai, now is a good time to start your search. Prices are still relatively low and some great deals can be had. With the market set to rebound in 2022, now is the time to invest in Dubai real estate.
For the latest updates on the Dubai real estate market, be sure to check back here regularly. We’ll be keeping an eye on all the latest data and news so you can make informed decisions about your investment.