The Dubai real estate market experienced a boom throughout 2022. A large part of this was due to overseas investors, particularly from Europe and Russia, purchasing property as an investment. The UAE is seen as a safe haven for investors, and developers believe this trend will continue long into 2023.
Real estate purchases by investors began to rise as the global pandemic began to subside in early 2022. Russian tourists and investors, along with investors from the other CIS countries, have been flocking to buy property in Dubai and across the UAE, with waterfront properties being particularly desirable.
Ryan Mahoney of Dubai, UAE, has worked within the real estate market for many years and founded several property start-ups in the region. The infographic attachment looks at some of the more popular areas for real estate investment in Dubai.
The Prime Residential Market
The prime residential market is the key driver of growth in the Dubai real estate sector. Investors are increasingly seeking luxury properties in Dubai, in areas such as Palm Jumeirah and Emirates Hills. Demand currently outweighs supply, and developers are rushing to construct new luxury properties in the richest and most desirable areas to try and meet this growing demand.
Record price growth in 2022 looks set to continue in 2023. However, Dubai is still a relatively affordable market for luxury property, which only increases the appeal. A typical luxury property will sell for an average of around US$800 per square foot. You can find out more about investing in luxury property in Dubai by taking a look at the PDF attachment to this post.
Ready Homes and Off-Plan Real Estate
Demand is high for both ready homes and off-plan real estate in Dubai and developers expect this to continue throughout 2023. A definition of off-plan real estate cab be seen in the embedded short video.
Many developers are offering flexible payment plans for off-plan properties, as it can be difficult for foreign investors to secure a mortgage in Dubai. Ready homes are being transacted in cash on the secondary market. With a well-regulated market, customers purchasing property in Dubai – even through payment plans – are well protected, and under current market conditions, most developers are not concerned with extracting hefty down payments.