Experts predict positive growth dynamics for Dubai real estate in 2022

  • February 18, 2022

Experts predict positive growth dynamics for Dubai real estate in 2022

Dubai real estate market continues to show an upward growth trend – driven by economic reforms, versatile visa policies, buyers’ protection laws enforcement, and a successful COVID-19 vaccination drive. It is not wrong if we state that has helped to hasten a rebound from the coronavirus-struck slowdown and near to stagnant economic growth last year.

A prosperous 2022 for Dubai real estate market

A majority of real estate experts foresee a prosperous 2022 because Dubai real estate is expected to sustain an upward growth trend, despite the new coronavirus variants are causing uncertainty in the market. The business resilience and powerful strategies will continue to attract global investors.

To make financing easier for the potential investors, the UAE banks have lowered the loan-to-value ratios, which have helped Dubai revive strong interest in the real estate sector. Due to a spike in demand for Dubai properties, a robust recovery can be observed across the performance parameters including property value, rental price, and a number of transactions.

Needless to say but Expo 2020 is also another important factor that contributed significantly to accelerating demand for Dubai properties.

New visa reforms to make Dubai a place for long-term stay

With current versatility and ongoing changes in residence visas, it seems evident that the UAE’s government is focused to make this country, the most preferred choice for entrepreneurs and expatriates for a long-term stay. “Due to the UAE government’s recent economic reforms, agile management of the COVID-19 induced global pandemic without affecting the business operations and commercial activities will lead to support the real estate market and augmented demand will be experienced across several asset classes,” states Shahwali Bashir, Director Copperstones.

“Copperstones has recorded a spike in the number of queries related to properties in Dubai, which will lead to increase in sales and rental price recovery in Dubai real estate market – signalling positive growth for 2022,” he stated further.

What does the data indicate?

According to a report, almost 37,000 residential units (around 6,000 villas) were added to the market in 2021 and seeing the demand and growth dynamics, we can expect a similar number of residential units to be added to the market.

It is an educated guess but we may see a higher number of units to be handed over this year, because the supply can be increased – depending upon the demand by the potential buyers.

Villa supply may shrink further

The global pandemic has added more to the need of upgrading the residences and moving to bigger units with open space. This trend has led to the increase in demand for townhouses and villas in Dubai, which eventually led to an increase in villa sales and rental prices. Moreover, the supply is limited due to current villa communities being limited and located centrally in the city.

According to a report, the soaring demand for villas in Dubai during 2020 and 2021 has led to an increase in average villa rents by 21 per cent year on year basis, while the apartment rents were increased by 3 to 4 per cent only across the city.

However, the real estate experts are of the view that coronavirus variants can create havoc anytime but the standard operating protocols will remain more or less the same, which includes social distance and having a house with multi-purpose additional space that can be used as a home-office – further adding up to higher demand for villas and larger residential units.

Market recovery will be continued in 2022

With more than 35,000 residential units to be added to the market despite the uncertainty associated with the coronavirus variants, it is clear that Dubai properties are in higher demand, which will lead to market recovery in 2022 and the years to come.

Moreover, Expo 2020 has attracted masses from across the globe, who visited Dubai and explore the city with a whole new perspective, which has also added more to the increase in demand for Dubai properties from local and international buyers alike. According to an estimate, almost 4 to 5 per cent of visitors, who visited Dubai due to Expo 2020 will make Dubai, their permanent home in the years to come.

Conclusion

We can expect a spike in the number of real estate transactions in both the ready-to-move and off-plan sectors, due to the increase in demand for Dubai properties from local and foreign buyers. Resultantly, the property prices will also be gradually increased in the years to come, with the market to attain pre-pandemic levels.

Rental prices will also be increased in the years to come, which is a positive sign for landlords after being tenant-friendly during the past few years. Another observation is that prime residential areas will again be in higher demand and the property prices will also be increased there due to limited supply.

If you have been planning to invest in Dubai real estate for a long, we would say that the right time is now before the property prices will be increased, tremendously. And Copperstones can help you get your hands on the best properties in Dubai at the most exciting prices. All you need is to pick up your phone and drop us a call at +44 203 888 5555 or leave us a query at enquiries@copperstones.com and one of our sales agents will get back to you with a bespoke investment plan and list of premium properties in Dubai.