In light of Global Financial Market Conditions, how is the Dubai Real Estate Market expected to perform in late 2022 and 2023?

 

In Q2 of 2022:

  • Dubai’s residential apartments have recorded AED29 billion worth of sales transactions which is a 50% increase as compared to Q2 of 2021.
  • Dubai’s residential villas have recorded AED17.8 billion worth of sales transactions which is a 33% increase as compared to Q2 of 2021.
  • Dubai’s commercial offices have recorded AED1.3 billion worth of sales transactions which is an 8.5% increase as compared to Q2 of 2021.
  • Dubai offplan land sales have recorded AED11 Billion worth of sales transactions which is a 57.5% increase as compared to Q2 of 2021.
  • Reference www.DXBinteract.com 

Considering global, regional and local spectrums, the Dubai real estate market is likely to continue to thrive in late 2022 and 2023; irrespective of sluggish markets in the US and the EU.

Global:

  • Unstable EU
  • Weakened Real Estate in the US.

Regional & Federal:

  • Strong GCC market with Oil prices on the rise.
  • Strong government spend: In June 2022, the UAE federal government announced their aim to increase the federal budget by 1.23 Billion dirhams 335m $. While the federal budget accounts for part of the state budget for Dubai and Abu Dhabi, as they each has their own state budget, it is still a solid indication for the strong economy.

Dubai Micro level:

  • Strong influx of ultra-wealthy investors to live and invest
  • Strong purchase-power of non-mortgage buyers
  • Transparent real estate market data (DXBinteract.com)
  • Uninflated prices of real estate. In fact, very competitive prices at the levels of 2014 for the majority of the residential apartment market
  • Competitive taxation environment  
  • World class infrastructure
  • Attractive rental returns
  • Business opportunities 


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