Given the achievements of Dubai over the past 20 years, the emirate may well become the world capital of investment, and today everyone has the opportunity not only to save, but also to increase their capital by buying property in the emirate. Investment property in Downtown Dubai, Palm Jumeirah and other districts have long become a sign of prosperity and wealth.
Record sales figures of real estate in Dubai
The first quarter of 2023 was a record for the property market in the emirate. Specialists recorded the highest sales volume in the history of observations. The total number of transactions amounted to 30,500, and their amount – more than AED 86 billion.
Also, experts note the growth in sales on an annualized basis – it grew by 55% compared to the same period. Recall that in the first quarter of 2022, transactions worth 55.5 billion dirhams were concluded. Experts explain such high performance of the market by a combination of three factors:
- attractive real estate prices
- excellent rates of return on investment
- the stable economy of Dubai
In addition, the emirate is distinguished by other pros that foreign citizens can take advantage of. The city presents a lot of opportunities for representatives of any state – the policy of a multicultural community allows you to offer loyal conditions for everyone. Important factors are the purchase of housing in the property, the possibility of developing your own business and obtaining a residence permit for all family members.
Premium property in Dubai
Throughout the first quarter of this year, Dubai’s premium property segment continued its steady growth. Statistics showed that the overall increase was 27%, and the average cost of luxury housing rose to AED 25.2 million, equivalent to $6.86 million. At the same time, the total sales for the three months amounted to AED 14.7 billion.
Today, the average cost of one square meter of premium real estate was AED 3,373. Three districts stood out among the leaders in terms of sales of premium housing:
- Jumeirah Bay (220% growth)
- Al Barari (168% growth)
- Downtown Dubai (49% growth)
Experts note that the number of proposals in the segment of luxury property is still less – demand largely exceeds supply. Against the backdrop of government initiatives and economic recovery, this situation may well lead to a serious increase in the value of premium real estate by the end of the year.
And this means that potential buyers of premium real estate are in a winning situation: the timely purchase of housing in the near future will help earn even more dividends.
Attracting clients by developers
The Dubai real estate market continues its steady growth. Developers are trying to meet the growing demand by attracting more and more buyers to their properties. It cannot be said that today the market is characterized by a shortage of properties, but the leading developers are trying to attract the attention of investors with more profitable offers.
Analysts specializing in research of the real estate market in Dubai report that the most optimal incentive for most buyers was to reduce the size of the down payment. 10% or 15% have become traditional values for the first instalment; however, reducing them to 5% will be the best solution that will attract additional buyers.
Already today, options are appearing on the Dubai property market where the down payment is 1% of the total value of the housing. Some developers even refuse to calculate interest at all and offer investors to pay a fixed advance payment of AED 50,000 dirhams.
According to experts, the down payment has always been the most problematic stage in any real estate transaction: it is here that potential buyers experience the most difficulties, which were associated with high inflationary costs and higher mortgage rates.
The statistics summed up for the 1st quarter of 2023 show that over 31,000 properties were sold in 3 months of this year. DXBInteract was able to compare this figure with previous years and found that today’s figure is 50% higher than in Q1 2022. Moreover, this number of sales is the best indicator for the last 10 years in the real estate market.
According to experts, the main prerequisites for such an increase in the number of real estate sales contributed to two main factors. First, it is the unique Golden Visa program, which has begun to attract buyers and investors. Secondly, the ongoing demand for luxury real estate.
At the same time, experts argue that the Golden Visa program can significantly expand its capabilities by starting to attract more and more buyers from other segments. Recall that in 2022, the government of Dubai decided to lower the minimum threshold for the value of real estate, upon purchase of which an investor could count on obtaining a Golden Visa: if earlier the figure was AED 10 million, today you can get a golden visa when buying housing worth AED 2 million.
Real estate agency in Dubai
Dubai-Property.Investments agency can help you find a perfect investment option in Dubai. The specialists will consult you about all the things concerning the sales process as well as sealing the deal and the transaction.