The pandemic has altered the global economy and housing market all over the world. However, Dubai’s economy rebounded strongly this year as the commerce and tourism sectors opened up. 

It helped in aiding the previously struggling real estate industry, thanks to a successful vaccine roll-out and an early loosening of COVID-19 restrictions.

The real estate market’s endurance in the face of the pandemic was due to a number of factors. Government incentives such as special investor and retiree visas, golden long-term visas, and the UAE Central Bank’s decrease of the loan-to-value (LTV) for first-time homebuyers to 20% boosted the business significantly. 

Low-interest rates, competitive mortgage programs, and affordable property prices, all contributed to the market’s success.

Trends in Dubai Property Market

Since the beginning of 2021, the Dubai property market, particularly the home sales sector, is stabilising. With increased income growth rates for the first six months of the year, the majority of real estate organisations specialising in residential property sales corroborate this trend. 

This scenario is linked to the pandemic when homebuyers were unable to furnish their new homes or redesign them. People preferred to live in the moment throughout the pandemic year, which is why buying a move-in ready property has become so popular.

Growth to Expect in 2022-2023

There is no doubt that the Dubai property market will expand during the next two years. According to Reuters, the rate of increase in home prices will reach 3 per cent by the end of the year. The next year’s growth rate is predicted to be 2.5 per cent.

Moreover, in the second half of the year 2022, low-interest rates and attractive mortgage solutions would benefit buyers in the market. It will particularly benefit end-users intending to reside in the property, as demand for villas/townhouses continues to rise.

As you all know, during the pandemic, the situation in the real estate market began to shift. The reduction in property values from 2014 to 2020 was about a third of the maximum permitted. The combination of this circumstance and the Covid epidemic has merely hastened the price decrease.

Demands Increased for Big Sized Properties Despite the Pandemic

Despite the fact that many people lost their businesses, jobs, and money in 2020, demand for more expensive houses and larger flats in Dubai has surged. There has been a noted increase in the number of luxury villas for sale in Dubai.

This trend can be explained by people’s need for greater personal space in connection, especially since they were frequently isolated during the coronavirus’s first year.

Is it the Right Time to Invest in the Dubai Property Market?

As said earlier, the coronavirus pandemic made many individuals hesitant to invest, but those who were considering buying real estate in Dubai and renting out their newly purchased property in Dubai were not deterred. 

The truth is, because of the lockdowns in 2020, real estate prices plummeted. This prompted people who previously had the option to purchase villas or flats but had put off making a decision in the hope of better conditions to finally act. 

People received twice as much money for selling their property from the beginning of this year to the third quarter of 2021 as they did in the entire year of 2020, particularly in Dubai Marina and Business Bay.

Let’s review some other benefits why you should invest in the Dubai property market now:

1. Benefit of Investing in Dubai Real Estate Sector 

First and foremost, the pandemic is not going away anytime soon, but it is having a negative impact on people’s income and savings. As a result, rather than hoarding cash, it is preferable to invest and what better option than the Dubai real estate market?

Another compelling reason to invest in the Dubai Property market is that homes are no longer just homes, where people used to retire after a long day at work. People are spending an increasing amount of time at home, working from home, and going to school from home. 

The majority of them are improving their homes to make them more comfortable, while a few are considering moving into larger apartments or villas. 

People are increasingly transitioning from rental properties to homeownership in Dubai’s real estate market. These are the factors that have contributed to Dubai’s remarkable rebound in the residential real estate sector, which has resulted in record sales despite the Coronavirus pandemic.

2. UAE Nationality

The UAE government has created history by changing the Executive Regulation of the Federal Law on Nationality and Passports, allowing foreign investors and professionals to get Emirati nationality and passports under certain conditions.

The revision of nationality rules will have a big impact on the country’s economy and will attract many investors to the country. This one move, according to real estate analysts, might be a game-changer for the Dubai property market in particular, and the UAE real estate sector in general, because it will enhance demand for residential properties from both end-users and investors.

3. Shifting from Rental Properties to Affordable Homes

A recent trend has been noted in Dubai, where a growing number of inhabitants are moving from rented properties to their own homes. The amount of inquiries about home financing and the cost of new homes for sale in Dubai is on the rise.

The primary reason for the unexpected increase in the number of searches about houses for sale in Dubai is attractive property pricing, reduced mortgage rates, and a higher loan to value ratio. 

Expats can borrow up to 80% of their property purchase price, while UAE residents can borrow up to 85% of the entire property value under the new mortgage rule. As a result, many people are looking for affordable homes to avoid paying exorbitant monthly rents and to have a place of their own.

Final Word

Despite the fact that the Covid-19 pandemic had the greatest impact on Dubai’s real estate market, experts predict that it will recover in the next few months. The UAE government has also implemented new policies that will undoubtedly return the economy to a path of growth and prosperity. 

Moreover, property prices are moderate and within most investors’ budgets. Given all of this, it is safe to say that now is the perfect time to invest in the Dubai property market.

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