Important Elements that will Positively Affect the Dubai Real Estate Market
In terms of volume and value of real estate sales, May 2022 in Dubai saw a total of 6,651 transactions worth AED 18.3 billion (USD 4.98 billion), making it the best May in 13 years. At the same time, transaction figures showed a 51.5 percent year-over-year increase in sales volume and a 65.4 percent increase in sales value compared to May 2021, according to Arabian Business.
The most recent real estate trends in the area, which are always changing and may have an impact on the markets soon, are discussed below:
1. Dubai's real estate market is greatly influenced by the new Golden Visa amendments.
The UAE government announced new residency programs, including Freelance Visas and Green Visas, as well as the chance to obtain a Golden Visa when purchasing an off-plan or secondary property for a minimum of AED 2M during the most recent visa overhaul (USD 545K). The property may also be mortgaged in order to be eligible for this type of visa. As a result, this action will encourage more foreign investment into the nation and give locals a compelling reason to make long-term investments in the UAE. Young professionals, in particular, will benefit from the new change because they will be able to support the economy of their country and purchase a home because the upfront cash deposit is lower.
2. By making all property information accessible to the public, the Dubai Land Department (DLD) will increase transparency.
The DLD declared that its real estate information would be made accessible to the general public on its website in April 2022. All gifts, sales transactions, mortgages, Ejari registrations, land ownership, building and unit data, valuations, as well as developer, broker, and project data are therefore accessible to everyone. The Ejari contract number and property IDs are two examples of distinctive identifiers for each real estate transaction. In addition to all of this, the JLL Global Real Estate Transparency Index was introduced in 2020 and ranked Dubai as the 36th most transparent city. One of the top UAE consultants, Lynette Sachetto, claims that this proactive move places Dubai on par with other established real estate markets.
3. The position of Dubai's real estate market will improve with the use of cryptocurrencies for payments for goods and rent.
The use of cryptocurrencies in real estate transactions has been solidified by some of the biggest UAE developers, including Nakheel, DAMAC Properties, and Binghatti Developers. The absence of checks, loans, and fees, as well as lower cost, are advantages of cryptocurrency transactions.
4. Demand for properties that promote mental health.
A study by the mobile technology company Kisi found that Dubai residents are among the world's most overworked people. In order to improve their mental health, a quarter of homebuyers in the emirate choose dwellings with features like spa-inspired bathrooms, freestanding bathtubs, meditation corners, indoor plants, and fixtures and layouts that let in more natural light, among others. Finding the ideal neighborhood with parks, playgrounds, gyms, and swimming pools is a top priority for prospective homebuyers. Not to mention having easy access to lifestyle amenities like restaurants, retail stores, beauty salons, and schools. Some communities experience traffic congestion, which raises stress levels.
5. Top innovations for 2022
Upscale properties by all major developers in Dubai have been completely sold out since 2021. The Residences JLT's full-floor penthouse was sold by Signature Developers for AED 36 million (USD 9.8M). The penthouse at the Taj hotel, which is on the top floor, features wall-to-wall decorations and a private elevator.
It is noteworthy that the most expensive villa in Emirates Hills, the XLV Residence, is currently up for sale for AED 225M (USD 61.26M). This opulent home was built by Select Group and features decor and furnishings by Fendi, Cavalli, and Gaggenau.
Dubai has seen the debut of a variety of opulent projects over the first two quarters of 2022. As developers work to address the undersupply of luxury real estate in Dubai, some examples include AVA at Palm Jumeirah, Elysian Mansions, The Ritz-Carlton Residence, and Six Senses Residences on the Palm.