The burgeoning real estate market in Dubai showed no signs of slowing down as the week began, with transactions continuing at a breakneck pace.
Data that was released by the Dubai Land Department on Monday showed that the Dubai real estate market recorded 643 sales transactions totaling AED1.93 billion ($525 million), in addition to 93 mortgage deals totaling AED1.25 billion ($340 million), and 10 gift deals totaling AED178.51 million ($48.6 million) on Monday.
The sales included 575 villas and apartments with a total value of AED1.46 billion ($397.5 million), and 68 land plots with a value of AED463.09 million ($126 million). The mortgages included 39 villas and apartments with a total value of AED79.09 million ($21.5 million), and 54 land plots with a value of AED1.17 million ($318,000), bringing the total value of real estate transactions for the day to more than AED3.3 billion ($915 As a result of the International Monetary Fund’s (IMF) recent upward revision of the UAE’s economic growth forecast to a projected GDP of 5.1 percent for this year, compared to its previous forecast of 4.2 percent, we can anticipate that this year will see the nation experience the highest growth rate it has seen in a number of years. At the same time, the real estate market in the emirate is seeing robust growth, with transaction volumes increasing by sixty percent in the first half of 2022 and prices increasing by eighty-five percent over the same time period. The resurgence of the real estate market is in no way comparable to a bubble, since demand is forecast to be bolstered by the anticipated migration of expatriates looking for refuge from the fast increasing cost of living in their respective home countries. Tourism associated with the World Cup is expected to provide a significant boost to Dubai’s hospitality sector, including its short-term rental market, but brokers are also expecting an impact on luxury-residential real estate, which has experienced a boom since the outbreak, with prime properties in some neighborhoods nearly doubling in price.
Dubai is quickly becoming more desirable as a place to reside as inflation in the United Kingdom approaches 10 percent, economic expansion in the eurozone is forecast to come to a halt in the fourth quarter of this year, and interest rates on mortgages in the United States have reached their highest level in 15 years. Numerous government efforts, in addition to solid compensation packages, low income tax, a high quality of life, and world-class infrastructure, are fast converting Dubai from a transient home along the expat path into a potential with longevity. Along with widespread employment law reforms and most recently, the announcement of the Golden Pension scheme, all of these factors have contributed to Dubai being seen as an increasingly secure city in which to settle down for the long term. The Golden Visa is valid for ten years, the Green Visa is valid for five years, and the Jobseekers Visa is valid for one year.