Dubai offers tremendous opportunities for investors, making it a global financial hub with more than $350 billion worth of trade flowing through its economy each year. It also has a distinguished real estate market that offers many investment prospects. In 2021 alone, reports show that a total of 52,415 investors acquired 72,207 properties in the emirate, allowing the industry to record 84,772 property transactions valued at 300 billion AED. With this, Dubai saw a growth of 65% in the number of real estate transactions for the said year.
As the emirate transitions throughout 2022, a general increase in demand for real properties is seen, since according to experts, the growth observed in the previous year will continue. In March 2022 alone, reports have shown that Dubai has already seen its highest transaction volume in the residential real estate sector for the first quarter of the year, with a total of 7,865 transactions.
If you are among those looking to invest in Dubai this 2022, take a look at the trends in its real estate market and see why it is a viable investment option for you.
Demand for Luxury Houses
According to recent reports, the influx of millionaires into Dubai as the COVID-19 pandemic subsides boosted the demand in the luxury property market. Compared to the real estate trend during the height of the pandemic in 2020, where every luxury residential unit worth more than $1 million became a burden in the property market in Dubai as they were barely selling, the beginning of 2022 “marked a new phase for the real estate sector,” according to the founder and managing director of Union Square House. This is grounded on the fact that many millionaires are moving into the emirate with their families, investing in holiday homes and permanent residences as border control policies ease. In fact, according to New Dubai Media Office, its population of high net worth individuals (HNWI) increased to 54,000 in 2021, achieving a growth of 3.8% from 2020. As the pandemic subsides in 2022, the country can expect more of these HNWIs to move, enabling the real estate market to flourish.
Like any other country, Dubai closed down its borders and restricted travel within the emirate in 2020 as an attempt to isolate the spread of the COVID-19 virus, causing a steep decline in reservations for short-term rentals for the said year. As the country reopened its market for tourists in 2021, the demand for short-term rentals consequently increased, a trend which is predicted to continue in 2022 as the pandemic eases according to reports.
According to recent studies, 86% of people want significant changes to make the world more sustainable post-pandemic. As research has shown that building material production and building energy use have contributed 45% and 40% of carbon footprint, respectively, it now becomes the responsibility of the government and the people to put sustainable solutions at the heart of real estate development. As for Dubai, the government continues to implement the Green Building Regulations and Specification Project, which paved the way for a more resource effective and sustainable construction and operation of buildings within the emirate.
Looking to Invest in Dubai’s Real Estate Market?
With its environmentally sustainable and robust real estate market, it is now more viable to invest in Dubai for the year 2022. Start now by reaching out to one of the top investment companies in the UAE, AIX Investment.