Dubai’s property market has matured considerably in recent years, with a more diverse range of buyers with different requirements. There are three main types of buyers or investors buying property in Dubai, as follows:
1.The Flipper
This kind of investor usually buys pre-launched real estate and sells it on after just a few days or weeks, sometimes for triple digit returns. With the many developments of spectacular residences across Dubai, this is often a popular choice for investors.
2.End User
Homebuyers are the foundation of Dubai’s real estate market and as the population continues to expand, end users represent a large portion of buyers. This has a positive effect on the property market because end users bring considerable stability to the sector overall.
3. Investors Looking for Yield
The long term and vacation rentals market has attracted significant activity in 2021, largely due to the World Expo, which is hosted in Dubai this year. Many industry insiders believe that property rentals will continue to grow in 2022 and this will provide robust support to other sectors in Dubai’s real estate market.
The Nov. 18-Dec. 6 Reuters poll of 11 property market analysts showed a median rise of 5.0% in Dubai house prices in 2022, twice the 2.5% forecast three months ago.
Dubai Real Estate Boosted by Foreign Buyers
Dubai was one of the only cities in the world that remained largely Covid restriction-free throughout 2021 due to the success of the UAE’s initial response. This has ensured that foreign property buyers have had relatively easy access to view and negotiate acquisitions in Dubai. According to a recent poll by Reuters, Dubai house prices are expected to rise by 5% in 2022, which is double the 2.5% forecast three months ago.
The resulting market stability has been complemented by recent visa reforms, including a 1-year business visa designed to attract entrepreneurs and startups. There has also been a considerable rise in home-buying packages that include business licenses with significant benefits. These features combine with the emirate’s overall quality of life and attractive pricing to draw new residents in great volume.
Affordability to Drive Rental Market in 2022
According to a recent Reuters poll, around 75% of respondents said they expected Dubai’s housing market to be driven by foreign demand in 2022. However, much of this demand is expected to be from long and short-term tenants rather than owner-occupiers. With vacation rentals experiencing significant growth in 2021, the market has matured to appeal to a much wider demographic of residents.
Individuals working for themselves or remotely for a corporation, small business executives or digital nomads are all flocking to Dubai for rental properties. There are plenty of incentives for them to do so, from an accommodating tax environment, a beautiful year-round climate and proximity to some of the most incredible sights in the world. As the rental market continues to grow, yields for investors are likely to become significantly more attractive in 2022.
Why Dubai’s Appeal Keeps Growing
Real estate investors have always favoured Dubai because it is an extremely attractive destination, particularly for prime property in the best locations. Prices tend to be lower than in other international cities like London, Paris and New York and can also achieve an average of 5% to 10% higher rental yield than other more mature markets.
The fact is that Dubai offers some of the most luxurious properties in the world, and attracts residents with its unparalleled lifestyle. The city has the perfect ingredients to attract investors based on its track record of being one of the safest and more open investment destinations in the world.
The qualities of Dubai that appeal mostly to buyers are the high levels of safety and security the country offers, particularly for high-net-worth-individuals. Other attractive features include plenty of international schools, a well-developed infrastructure, tax-free status, beneficial visa options and 100% foreign ownership possibilities.
Market predictions indicate that 2022 will be a year full of opportunity for real estate investors in Dubai. Our team has extensive experience of sourcing homes in the city that provide lifestyle solutions to suit your personal preferences. We have an outstanding reputation for discretion and efficiency. Reach out to us today to find out more about the many opportunities there are in Dubai and we’ll find you real estate that meets your criteria exactly.
