It’s not hard to believe that the real estate prices in Dubai, “the city of skyscrapers” are touching the skies! Thanks to the new reformed visa policies and ultra-high-net-worth individuals (UHNWI) who are migrating to the Emirate. Dubai rents are at an all-time high, you will know it if you throw a glance at the transactions of AED2.2 billion lately done in the real estate market. Not just rents, but the average sale price for villas and apartments in Dubai also rose 14% and 9% respectively through September, reveals CBRE. There were 479 sales transactions worth AED1.65 billion, WAM reported, in addition to 82 mortgage deals of AED406.61 million, and 37 gifts deals amounting to AED137.63 million on Wednesday, says Dubai Land Department (DLD). Sales included 437 villas and apartments worth AED1.44 billion, and 42 land plots worth AED210.44 million.
Benefits & Impact
The emirate’s real estate market is benefitting from an influx of newcomers including bankers fleeing strict Covid restrictions in Asia, crypto investors and wealthy Russians escaping their sanctions-hit country after its invasion of Ukraine. A host of international buyers are being lured to Dubai’s unsurpassed sun-sea-sand lifestyle, which tends to come with villa purchases, and this is where demand continues to intensify. This in turn may impact its competitiveness and lead to a negative spill over into other sectors, particularly amidst a high cost of living and softer global economic backdrop. Demand to buy homes and rent in Dubai is rising as the government’s handling of the pandemic and its liberal visa policies lure more foreign buyers and residents.
Why investing in Dubai real estate sector is rewarding in 2023?
Home to sky-scraping buildings and world-class structures, Dubai is associated with luxury, as for many decades, it has accomplished huge success in development and become one of the top ten cities in the world. Foreigners from the world over migrate to the emirate, making up nearly 90% of the total population. Therefore, real estate in Dubai is always in high demand.
Reasons to invest include:
- Wealthy Russian and Ukrainian investors are migrating to the emirate
- Golden Visa by Property Investment is in high demand to obtain the long-term UAE residency
- Supreme construction quality
- High prices can be recouped easily
- Superb profitability ratio when renting out properties
Apartments can bring up to 7-8% profit per year, and the figures depend on the property features and its location. For villas for sale in Dubai, this indicator is lower and reaches 4.5-5%.
What’s news for others is opportunity for you!
If you are thinking about starting a real estate business in Dubai in 2022, this is a perfect time! Dubai’s real estate sector is growing at the speed of light. The new visa rules implemented on 3rd October 2022 are only going to accelerate it. In view of the influx of wealthy foreign investors to Dubai to purchase property in the emirate, you are sure to roll in money if you set up a real estate business in Dubai. It’s a fantastic time to start a real estate business in UAE. For any inquiries about real estate agency setup in Dubai or any other emirate of the UAE, get in touch with one of our most experienced business setup experts in Dubai.