The year 2021 was marked by a new stage of development of Dubai as an economic center of the United Arab Emirates and a promising player in the international arena. Real estate in Dubai has played a key role in this issue. The official Internet website Emirates.Estate will tell you how profitable it is to buy a property in Dubai now, as well as about the current situation in the housing market.
Economic situation in Dubai, UAE in 2021
Before the coronavirus pandemic, the Dubai real estate market was suppressed by an oversupply. Then, with the onset of Covid-19, the market’s decline continued, and after that, it was completely frozen by quarantine. However, as the quarantine measures weakened, the demand that had been held all this time began to gradually recovered.
People, exhausted by self-isolation, felt the need to break out of the shackles of boring everyday life. So, within a few months of 2020, people bought up ready-to-move-in villas, townhouses, and apartments in Dubai. The demand for off-plan properties in Dubai also gradually grew, new offers from developers were successfully sold out in a matter of days. In the first quarter of 2020, the number of transactions has already exceeded the number of transactions for the same period of 2019 by 84%.
In 2021, the UAE economy progressed well. Rich Europeans, forced by the threat of repeated border closures, continued to invest in flats in Dubai, thanks to which transactions in the first quarter of 2021 exceeded the figures for 2020 by 168%.
The secondary housing market was reinforced in the country, the number of transactions on which increased by 66.2%. For the first time in 6 years, the market began to show positive dynamics, thanks to which house prices in Dubai increased by 19%. In March 2021, Dubai overcame a 10-year high, and the luxury real estate sector worth more than 10 million dirhams was enhanced in the UAE.
Now Dubai is at the peak of general economic prosperity, the government is stimulating the interest of foreign investors and potential home buyers with favorable offers in the luxury real estate sector, mortgage rates and other preferential conditions in free economic zones. If you were planning to become the owner of an Arab apartment in Dubai – now is high time.
Why it is worth buying an apartment in Dubai right now
A number of factors contribute to creating a favorable situation for buying a property in Dubai for expats. The main ones are:
- A relatively comfortable price for 1 sq. m. of living space – about 23 thousand dirhams;
- The average cost of a property in the Dubai city center is 2.7 million dirhams for housing with an area of 120 sq. m.;
- Rental of housing on average from 12 thousand dirhams with a yield of up to 12% per year;
- The maximum sales volume against the background of general price growth is $510 million;
- Increased consumer demand in the luxury real estate segment, in particular in the market of villas and townhouses;
- Comfortable conditions for the purchase of off-plan property in Dubai. Developers offer home buyers favorable conditions for drawing up an individual payment plan, with installments and discounts;
- If you have a good credit history, influential banks of the emirate provide optimal mortgage conditions for buying apartments in Dubai for foreigners.
Additional incentives for homebuyers in Dubai
In 2021, the government of Dubai focused on rethinking public spaces in residential areas of the city. According to a report by JLL MENA publishing house, due to the limitations of the coronavirus pandemic, there has been a shift in consumer demand towards spacious housing in areas with a comfortable environment, convenient infrastructure, and transport. This year, the UAE government began to actively develop projects for the improvement of urban areas by creating conditions for mixed and multi-purpose dynamics that would fully meet the needs of the lifestyle of a modern person. Thus, multi-purpose concepts were born, which were based on the evolution of consumer taste. Currently, such property in Dubai, the UAE, is actively being developed and put into operation.
An excellent example of the successful concept implementation was Dubai Marina and Dubai Sport City districts, which are focused on maintaining a healthy lifestyle and the well-being of citizens.
On the wave of positive changes in the social environment, buying apartments in Dubai for foreigners in one of the areas with comfortable living conditions will be a reasonable decision. Regardless of whether you are buying an apartment in Dubai for yourself or for doing business, investment real estate in 2021 will please you from a financial and practical point of view.
The best areas of Dubai to buy real estate in 2021
The following areas have become the most popular for buying property in Dubai for expats:
- Dubai Marina – 12.3% of total demand;
- Dubai City Center – 7.3%;
- Business compartment – 6,4%;
- Jumeirah Village Circle – 4.9%;
- Palm Jumeirah – 4.6%.
More than 10% of tenants preferred to rent studios, 18.9% found one-bedroom apartments attractive, more than 17% preferred two-bedroom apartments, 8% rented three-bedroom apartments. Villas and townhouses on the coast have become the most popular type of housing to buy apartments in Dubai near the beach. The main conditions for buying and renting are a spacious area, a balcony, a terrace, accessible infrastructure, sea views, metro within walking distance.
There is a high demand for villas in the districts:
- Jumeirah – 7.1% of total demand;
- Dubai Hills – 6.2%;
- Arab Ranches – 4.9%;
- Springs – 4.5%.
17.5% of requests were related to three-bedroom apartments, only 13% – four-bedroom apartments. Most often, people focused on new repairs, privacy, a swimming pool, their own parking space, and convenient infrastructure.
Emirate.Estate helps customers buy flats in Dubai
Look for the most relevant offers from the leading developers of Dubai on the website Emirate.Estate. If necessary, you can always get detailed advice on the selection of real estate in popular areas of the emirate, as well as comprehensive support in the process of completing the transaction from experienced specialists in Arab housing.