Recent months have boldly experimented with various recovery scenarios for the UAE’s real estate sector; some attribute it to the government’s stellar handling of the Covid-19 health crisis, while others attribute it to the recently concluded Expo 2020 Dubai. Now’s the time to buy a property in the UAE if you’ve been looking! There’s been a lot of growth in the market in recent years, and Real estate Dubai 2023 is only going to get bigger. The following are some key trends to watch in the real estate market;
1. Demand For Luxury Villas Has Significantly Increased
In recent years, there has been a significant increase in demand for luxury villas in Dubai. The market remains fiercely competitive, with villas expected to outperform apartments. Only a few of these villas are currently for sale, indicating a limited supply. Despite the limited supply of luxury villas in Dubai, demand has remained strong. Despite the shortage, the market has continued to expand, with new deliveries expected this year. Demand for luxury villas in Dubai continues to rise as more foreign investors become engaged in the property market. The value of villas on the Palm Jumeirah and in the Dubai Residence complex has increased significantly.
2. Golden Visa Will Boost Real Estate Sales
While many international markets are still adjusting to Covid-related lockdowns and restrictions, Dubai’s economy has made significant progress. It has recovered as a result of increased oil prices and a resurgence in trade and tourism. It has led to exceptional transaction figures in the first half of the year, particularly for off-plan properties, as well as a significant increase in high-end/luxury residential unit sales.
3. Interest Rates Are Expected To Rise
Experts predict that the impact of higher interest rates on the Dubai real estate market will vary. Despite the uncertainty of rising interest rates in the UAE, analysts believe Real estate in Dubai in 2023 will continue to grow rapidly. Furthermore, a lack of reasonably priced housing will drive up rents, resulting in an increase in the overall cost of living. The population of the UAE is expected to grow by 2% per year on average. The Dubai real estate market has been thriving in the last year, with prices rising by more than 60%.
4. House Price Inflation Is Expected To Drop
The city’s real estate market will continue to see increased costs in the coming years. However, in Real estate Dubai 2023 and 2024, such increases will reduce by 4.5% and 3.0%, respectively. Despite this, the market is expected to remain stable and provide a good inflation hedge for investors. According to a recent study, the global property market frenzy has subsided, and house prices are expected to begin to fall. The increase in interest rates is predicted to temper the recent massive price increases. However, lowering housing prices will do little to make housing more affordable for the average middle-class family. Rising consumer goods, loan, and fuel prices will eventually force the middle class to sell their homes.
Real estate operators and leaders are on the verge of a new lifestyle era characterised by modern and contemporary ways for societies to live, work, shop, and play. The numbers in the UAE appear to be positive, but the real challenge is maintaining that trajectory and, ultimately, unlocking the industry’s future. Naturally, this makes Dubai real estate appealing to international investors. Real estate business setup in Dubai can be very beneficial since there’s a lot of demand.