Demand in the Dubai Real Estate Market Has Significantly Changed

Despite global concerns, the real estate sector in Dubai keeps expanding and prospering. The very first part of the year came to an end with 43.2k transactions totaling AED 115 billion, which was a very solid showing.

In particular, June 2022 generated amazing results. By recording 8850 trades totaling AED 22.10 billion, it surpassed a record that had stood for 13 years. These numbers indicated an increase of more than 41% from June 2021.

According to the Dubai property market witness, the market is expanding and won’t be significantly impacted by the current economic downturn. Analyzing the data generated by the Dubai real estate market over the past several months further reveals that there has been a significant shift in the demand for properties.

Let’s learn more about how the Dubai real estate market is shaping out in terms of demand for residential properties:

Ready Properties vs Off-plan Properties:

According to the Dubai property market report, purchasers are particularly interested in larger living spaces in low-density locations. This is one of the factors that is causing the demand for ready-to-move-in properties to increase relative to off-plan properties.

The fact that off-plan house prices are rising has also contributed to buyers’ attention shifting to the second (ready property) market. In contrast to ready properties, they are really growing more quickly. Therefore, many with little funds have begun hunting for ready-to-move-in properties. Despite this, because of the advantages they present, the industry favors off-plan properties.

Luxury Properties on the Rise:

According to the Dubai property market forecast, purchasers are particularly interested in larger living spaces in low-density locations. This is one of the factors that is causing the demand for ready-to-move-in properties to increase relative to off-plan properties.

The fact that off-plan house prices are rising has also contributed to buyers’ attention shifting to the second (ready property) market. In contrast to ready properties, they are growing more quickly. Therefore, many with little funds have begun hunting for ready-to-move-in properties. Despite this, because of the advantages they present, the industry favors off-plan properties.

According to estimates, 4,000 high-net-worth people will move to the UAE in 2022, and regulations that are attractive to expatriates play a significant role in this. Additionally, the updated regulations governing firm ownership are drawing a lot of entrepreneurs.

Apartments vs Villas:

Apartments outperform villas when project completion statistics for 2022 are taken into account. Compared to apartments, the flow of new villas is likewise rather constrained. Records indicate that only 3.6% of all scheduled villa deliveries will occur in 2022; as a result, the cost will be somewhat higher.

The transfer is not anticipated until the end of 2024, despite the fact that new buildings in Dubai that include villas and townhouses are being developed at a rapid rate. Flats for sale in UAE will therefore be in more demand.

Another aspect that draws end users and speculators to apartments is the relatively low price. In addition, the variety of contemporary infrastructure and services they offer contribute to their popularity.

The Rental Market’s Changing Dynamics:

The rental market in Dubai is also seeing changing dynamics in 2022. The cost of renting has gone up in certain places while going down in others. However, during the past 12 months, the rental rate for both flats and villas has increased by 21.2% and 24.7%, respectively. The current rent average for apartments in Dubai is AED 85,204, while the annual cost for villas is AED 255, 43.

Emirates Hills and Jumeirah Islands both had increases in the number of villas available for rent in Dubai that were greater than 4.9% apiece. Sustainable City (4.8%), Victory Heights (4.6%), Jumeirah Golf Estates (4.3%), and Mudon were its immediate competitors (4.3 percent). Dubai villa rental prices have decreased in the Meadows, springs, & Green Communities.

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