This guide outlines the increase in demand for luxury real estate in Dubai, and the record prices it is achieving.
Demand for luxury real estate in Dubai
The UAE housing market will be stimulated by increased demand for luxury real estate and offices, according to experts who conducted the research. Such demand will be driven by several factors at once, which will be combined with the growth dynamics. And it is these complex factors that contribute to the active development and management of the UAE property market. Check out deals for real estate for sale in Akoya Oxygen, Damac Hills, or Emaar Beachfront on Ax Capital website.
Property in Dubai
Many experts expected that the housing market in Dubai will be affected by the Fed’s rate hike. They, according to experts, should have had a negative impact on demand in the luxury sector. But at the same time, the UAE government continues to introduce measures to diversify the economy. Thus, already today, analysts say that such an event will not have a strong impact on real estate in the United Arab Emirates.
To date, the housing sector of the UAE is considered the most dynamic market among all the countries of the Persian Gulf. Recently, there has been an active rise in prices, which fits into the “big picture”.
New record in the luxury property for sale in Dubai
Last year, 93 luxury properties were sold in the city, valued at over USD 10 million. This figure has become more than the total sales over the past five years. Experts say that in 2022 the demand for expensive real estate will continue to grow.
Experts say that this indicator demonstrates the active development of the elite real estate market in Dubai. The Premium Property Index shows that properties in the Emirates Hills, Palm Jumeirah, and Jumeirah Bay areas experienced a 44.4% increase in value. And this property sector was able to achieve such an indicator in just one year.
- Meanwhile, the general market shows a different picture: especially for apartments and more affordable housing. Many investors are beginning to turn their attention to large living spaces, preferring to overpay but to purchase high-quality housing.
- Large houses continue to be in demand. This is especially noticeable in the statistics of transactions with villas, which show growth in both value and quantity terms. As for the prices of villas, they increased by 22% over the previous year.
Such statistics attract new investors who are just starting to explore opportunities in the Dubai property market.
Index of the real estate in Dubai
The Dubai property market is constantly evolving, not only thanks to unique projects from developers, but also due to new initiatives from the government. Government agencies are also interested in the development of the real estate market, as evidenced by the recent event – the first publication of the official Rental Market Index.
- The authors of the Index are confident that such a new document will ensure full transparency for the real estate market.
- This information will be especially useful for potential investors who plan to invest in housing in the city.
This Index has been produced through the joint efforts of the DLD and Property Finder. The statistics published in the Index reads: the indicator of the total monthly index in January 2022 was 0.938. As for the index price, it amounted to just over AED 51,000, which is equivalent to USD 13,912.
Real estate agency in Dubai
Are you also planning to invest in Dubai real estate to rent it out or would you like to purchase a property for your own residence? Contact the Ax Capital agency, and their experts will help you find the most optimal properties.