As 2022 has ended real estate sector in Dubai starts to set up the new goals and records. Let’s have a look at the expert forecast at the property market in the emirate as well as the Jumeirah area benefits. If you plan to buy property in Jumeirah, Downtown or any other area of the emirate, be sure not to miss our advice at the end.
Experts note an increase in demand for all products – from apartments to villas. The upward trend is expected to continue this year, pushing prices above pre-pandemic levels, Euronews reports.
“The market bottomed at the end of November 2020,” says Jeanne Yochinke, director of research at Cavendish Maxwell, a consulting group. – Then, during the pandemic, the markets were supported by the resale of villas and houses. And in the last 12 months, the sale of properties under construction has also resumed.”
According to Simon Baker, we will not see the same increase in prices as last year, but sales volumes will remain the same.
However, there are also opinions that the growth in property prices in Dubai may slow down in 2023. So, for example, thinks Richard Waynd, managing director of the Betterhomes group, a real estate consulting company.
In an interview with Reuters, he predicts that prices will rise by about 5% this year after rising by 11% in 2022, which in itself is a slowdown compared to 21% growth in 2021. In his opinion, the market in Dubai is subject to interest rates due to the predominance of cash purchases: “Thus, in the UK and the US, cash purchases account for somewhere from 20 to 40% of all transactions. Here it is about 70%.
Russians were the company’s top non-resident buyers in 2022, accounting for 15% of transactions, followed by:
- Britons at 12%,
- Indians at 11%,
- Italians at 7%
- and French at 4%, according to a Betterhomes report.
Buyers from Pakistan ranked sixth, Lebanon seventh, China eighth, the US and Canada ninth and Kyrgyzstan 10th.
Sultan Butti bin Meiren, CEO of the Dubai Land Department, notes that the emirate’s real estate sector has shown its ability to sustain rapid growth and increase its attractiveness as an investment magnet, according to Gulf Business.
In his opinion, thanks to close cooperation between public and private stakeholders, the sector should achieve even greater growth in the future.
Earlier this year, the Dubai Land Department announced its Strategic Plan 2026, which outlines a roadmap to transform the emirate into one of the world’s best real estate markets through good governance, innovation and the use of the latest technologies to develop new real estate solutions.
Market and transparency of real estate in Dubai
Free transactions were one of the reasons why the Financial Action Task Force on Money Laundering (FATF), an intergovernmental organization that sets global standards in combating money laundering and terrorist financing, placed the UAE on its gray list last March.
In response, the UAE stated that it “takes its role in protecting financial integrity extremely seriously and will work closely with the FATF to rapidly correct identified areas of improvement.”
The country’s authorities carried out a series of reforms, as a result of which the FATF later said that the UAE began to “comply” with 13 of the organization’s 40 recommendations, “substantially implemented” 23 recommendations and “partially complied” with four requirements.
In an effort to maintain its reputation as a transparent international financial centre, the UAE said last year that it “takes its role in protecting the integrity of the global financial system extremely seriously.” In August 2022, the authorities implemented a clear regulatory framework for real estate brokers who are required to file reports with the government’s financial oversight department on real estate transactions.
The emirate’s authorities do not publish their real estate register. Because of this, there is a perception that privacy is one of the reasons why the Dubai real estate market is in demand. Critics say there is little incentive for Emirati authorities to increase oversight or transparency, as they risk draining funds to neighboring Saudi Arabia, where the project city of Neom, the brainchild of Saudi Crown Prince Mohammed bin Salman, is growing.
In addition, recently the authorities of the kingdom began to demand that companies and corporations doing state-related business in the country relocate their business and offices in Saudi Arabia by 2024. Since that time, many international companies that do not want to lose the Arabian market have been forced to move their offices from Dubai to Riyadh.
Despite today’s positive performance, the Dubai real estate market had already experienced a slump in 2008-2009 amid the global financial crisis, when the real estate bubble burst, causing prices to fall by more than half. Today, the emirate’s market is 19 percent, almost a fifth of all bank credit risks associated with real estate.
Benefits and features of the Jumeirah area
Jumeirah area in Dubai is a rich area with the most elite infrastructure, entertainment and seaside recreation. There are many attractions here.
- A mosque built at the end of the last century stands out. It is built in the Fatimid architectural style. Any tourist can visit it, regardless of nationality and religion. It is best to come to the mosque in the evening, when its walls are illuminated by the rays of the setting sun. Tours are arranged for tour groups.
- Burj Al Arab is a unique seven-star hotel, located on an artificial island. It looks like a big sail. Gold, crystals, precious stones are important interior attributes.
- In Jumeirah Beach Park on the coast, you can walk or ride a bike. Safa is an entertainment oasis with many attractions. There is a world famous water park in this area.
- The small zoo contains animals that are on the verge of extinction. The park will expand in the near future. The authorities even want to make a safari out of it.
- A yacht club is available for visits, in which competitions of yachtsmen from different points of the earth regularly take place.
Property for sale in Dubai
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