The volume of real estate transactions in Dubai is actively growing: a market overview
Last month, the volume of real estate transactions in Dubai reached the highest value in the last 13 years. The reason for such a rush on the market was the increase in interest from investors, who are actively investing in the development of the emirate. Among the latter are not only large companies but private businessmen.
According to the analysis of the Dubai market by CBRE, last month the volume of transactions in the housing sector amounted to 5,542 transactions. Compared to the previous period, the number increased by 33%. A total of 30,900 transactions were conducted during the current year, which is the highest value since 2009.
Last month, the volume of sales of residential real estate under construction increased by 55.4%. The number of transactions in the secondary market increased by 18%. High demand has also provoked a rise in prices. The cost of apartments in Dubai rose by 9.6%, and the cost of villas rose by almost 20%.
On average a square foot of apartment in the metropolis will cost 1102 dirhams, and a villa – 1307. It should be noted that these values are almost 26% and 9.5% lower than those observed in 2014 when the Dubai market experienced a record boom in demand for real estate.
Consulting company ValuStrat cites other results. In contrast to CBRE, here experts say that in the villas and townhouses sector the dynamics of the previous month are lower than it was recorded in other months of this year. The cost of apartments has changed insignificantly. The price increase for villas is 33.4% and for apartments – is 8.2%.
According to experts, the interest of investors in the Dubai real estate market will continue at least until the end of 2022. Accordingly, the cost of facilities will also increase, especially since the emirate offers excellent conditions for business development. One reason for the demand is the geopolitical conflict in Europe, which has forced many investors to diversify assets. In addition, many people have emigrated to Dubai, which triggered an annual increase in rental rates by 19.1%.
According to experts, this year will be a record success for Dubai. According to estimates, the UAE will have the largest number of people among other countries whose income is $1 million or more. Their number is expected to be more than 4 thousand, and this will allow the emirates to become a leader in the world by the number of rich people. In addition to the UAE, this ranking includes the United States, Australia, Singapore, Britain, and others. These states annually attract many people with millions of dollars in wealth, but this year the UAE was ahead of all.