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What makes Dubai real estate attractive for investors in 2022?
Even though new variants of Coronavirus have been causing uncertainty even after the first cases detected in 2019, yet most of the countries have learnt to manage and grow economies. The UAE government has also adopted several measures in order to give a massive boost to its economic sector (especially, non-oil based economy). A few of the strategic initiatives include new visa reforms, successful COVID-19 vaccination roll-out, pandemic strategy to avoid lock-downs and introduction of many buyers protection laws – to continue to attract savvy investors from across the globe.
And due to all these initiatives and measures, the Dubai real estate sector has become one of the best and most promising real estate markets. Most of the real estate experts believe it to continue receiving significant interest from savvy investors. Let’s have a detailed look at the number of factors that can urge global investors to buy properties in Dubai.
Economic growth seems promising
The Dubai economic sector has proved to be phenomenal in a number of ways. A significant part of Dubai economy depends upon its real estate sector and over the past few years, the government has taken several initiatives to make this sector more attractive for foreign investors. The idea of introducing real estate reforms was to improve the sector’s performance and to win investors’ trust – in order to attract more foreign direct investment and inject into Dubai economy.
Expo 2020 has also drawn a lot of interest and according to an estimate, around 5% of foreign visitors have been considering to invest in Dubai real estate and shifting to this city, permanently. This event has helped international visitors to visit this city, which has not just changed their perspective about this city but given a boost to the economy through escalated interest in Dubai real estate sector. In short, Expo 2020 has transformed the landscape of Dubai altogether.
New visa reforms
Recently, the UAE government has introduced new visa reforms, which includes a 10-year residence visa (also known as long-term or Golden Visa). The sole purpose of this new visa is to make investors consider Dubai as their first residence, through a long-term residence plan for individuals. It also aims at attracting and retaining talented people in the country.
Business and trade reforms
Another attractive feature of new reforms is giving the liberty to high-net-worth individuals to come and start their business in the emirate – without the requirement to partner with a local sponsor. It will help spur economic growth and also attract individuals to come and live in the UAE. Moreover, the country has recently adopted a global work-week, making its market more attractive and more accessible from a trade and MNCs perspective.
According to The UAE Central Bank, a 4.2 percent GDP growth is being forecasted for 2022, which is double the growth rate achieved in 2021 i.e., 2.1 percent. The country is expected to see steady growth in the population, due to people making Dubai their permanent home in the years to come. And based on this estimate, we can expect further growth in all sectors.
Dubai real estate sector’s stellar performance in 2021
Dubai real estate sector has shown stellar performance in 2021, due to which it has caught the world’s attention. Moreover, its resilient economy proved to be promising during the challenging times in the last 2 years, which made Dubai more attractive for real estate investors.
According to an official press release, the Dubai Land Department (DLD) has recorded a total of 84,772 real estate transactions in 2021, worth more than AED300 billion. And upon further classification, we got to know that around 18,000 transactions took place during Q4 of 2021. It shows the confidence of international and local investors in the Dubai real estate market and its promising returns.
Based on strong infrastructure and attractive policies, the Dubai real estate market has outperformed a number of the best performing property markets including New York, London, Paris, and Hong Kong to name a few.
Dubai has ranked third best performing city in the world with the highest capital growth – recorded at 17 percent in 2021.
Villas remained the most popular choice in 2021
The demand and supply dynamics worked ideally in 2021. The best performing market segments were villas in Dubai, showing double digit growth on year on year basis. Moreover, villas were lower in supply line as compared to apartments but these properties were more in demand – especially, due to affluent buyers moving to Dubai and preferring larger family spaces instead of apartments – due to the provision of open green spaces within the property, which has become one of the most highlighted factors for living spaces people look for to avoid crammed up spaces.
Another factor that a majority of investors looked for before investing in Dubai properties were waterfront projects and fully-serviced high-end apartments.
Conclusion
Looking into 2022, Dubai real estate market looks optimistic due to a constant influx of individuals considering this city as their permanent residence spot. It is the right time to invest in properties for sale in Dubai and what better opportunity it can be than investing with Copperstones. We have a curated list of premium properties in Dubai that also offer positive returns, so feel free to contact us with your enquiries at +44 203 888 5555, or send an email at enquiry(at)copperstones(dotted)com. One of our sales representatives will get back to you with a bespoke investment plan and a list of hand-picked properties in Dubai.
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