This is good news for sellers and investors of property in Dubai, as the property prices have finally started to pick up. Although they haven’t reached pre-COVID levels, still the increase in demand to buy property in Dubai based on the increase in prices is certainly a good omen for those who had invested their money in the Dubai property market.
As per the Q2, 2021 Dubai Real Estate Report, over 15,596 transactions were made for properties in the emirate. The total value of these transactions amounted to AED 37 billion. These figures show substantial growth not only in terms of the same quarter last year (Q2, 2020) but the preceding quarter of the current year (Q1, 2021) as well.
So, does this mean it is the right time to buy a property in Dubai? Certainly, yes. More on that later, let’s first take a look at the housing trends in the emirate:
Housing Trends in Dubai
Buy Property with Bigger Living Spaces
The demand to buy property with a bigger living space in Dubai has witnessed a significant rise in the last couple of years. It was further enhanced by the COVID-19 as people realised the importance of having a bigger and spacious residence.
This growth in demand of property buying was reflected in the recent Dubai property market report, as 2,284 villas collectively valuing AED 5.4 billion were sold in the emirate. This shows QoQ and YoY growth of 63.1% and 275%, respectively. The most expensive villa in Dubai since 2015 was also sold at AED 1195.5 million during this quarter.
The number of apartments sold (10,117) during the last quarter was higher as compared to villas. However, if we take into account the QoQ and YoY growth rate, villas had the upper hand. This clearly depicts the growing demand for villas in Dubai.
Popular Communities for Residence in Dubai
As per housing trends in Dubai, the following communities remained buyers’ favourite during the recent period:
- Dubai Marina
- Jumeirah Lake Towers (JLT)
- Jumeirah Park
- Jumeirah Islands
- Mohammed Bin Rashid City (MBR)
- Dubai Hills Estate
- Jumeirah Village Circle
Is it The Right Time to Buy Property in Dubai?
Now, comes the main question “is it the right time to buy a property”. As stated above, the answer is a big yes. The market is recovering and an increase in property prices is anticipated as well.
These are some of the factors that show it’s the best time to buy a property in Dubai:
Thanks to the efforts of the government, the Dubai property market has improved tremendously after the setback of the global pandemic. Still, the prices, as we discussed above, haven’t yet touched the pre-COVID levels. This means there’s still some time to buy a property in Dubai at reduced rates.
Whether you’re an investor or end-user, you can capitalise on this opportunity. As an investor, you can add more listings to your property. And if you’re an end-user, there can’t be a better time to own a property in Dubai that comes with modern luxuries and amenities.
If you buy a property in Dubai now, you can sell it at higher rates in the coming times. This presents an opportunity to earn higher returns for property investors.
Also, due to these recent developments, an increase in the demand for properties in Dubai is speculated:
Company Ownership Amendment
In a historic turn of events, the UAE now allows foreigners to enjoy 100% company ownership. The requirement to have a local sponsor onboard has been abolished. This has opened up new avenues for those seeking entrepreneurial opportunities in Dubai. This is why more people are expected to come to the emirate to run a business; hence, there will be a higher demand for residential properties.
Citizenship Law Amendment
Many people were wary of choosing Dubai as their second home since there was no permanent residency. However, at the start of this year, the government amended the citizenship law. As per the amended law, selected foreign nationals could be allotted emirate citizenship by the government and they can buy property in Dubai. This led to many people entering the emirate, and experts believe that Dubai will welcome more foreign nationals in the years to come.
Expo-2020 Round the Corner
The mega event Expo-2020 is also expected to directly impact the property market of the emirate. Of course, not every visitor is expected to buy a property in Dubai. However, they will need a place to stay temporarily. And for this, they will opt for hotels or short-term rentals. This creates an opportunity to earn ROI for those who own ready property in Dubai.
To put it simply, if you own a property in Dubai, you can list it for short-term rental before the exhibition commences. This way, you can earn a high rental income throughout the duration of the Expo-2020.
Abundant Options Available in the Primary Market
It’s safe to say that Dubai is teeming with opportunities, particularly the real estate sector, as several residential projects were launched in recent years. Most of them are available at rates lower than the market and with convenient pricing plans as well.
An Opportunity to Become a Dubai Resident
If you buy property in Dubai, it opens up chances of getting the residency of this emirate. This certainly comes with many perks. However, there are some pre-requisites that must be followed for this purpose. Firstly, the worth of the property must be AED 1 million. It should be ready to move in, and you must make the entire payment in case. This implies that off-plan properties and payment plans are not accepted.
In all, if you’ve made up your mind and are contemplating the idea of buying a property, visit Zoom Property and take a look at the best property listings not only in Dubai but the entire GCC including Kuwait, Qatar, Saudi Arabia, Oman, Bahrain and more.