It’s no surprise that Dubai has become one of the most popular destinations in the United Arab Emirates. Whether it’s due to its high-end infrastructure, prime amenities or status as one of the safest cities in the world, it is now deemed to be one of the top destinations for holidays, business and, unsurprisingly, living.
Like many other countries, the UAE witnessed a significant drop in its real estate market, marking 12%, after the widespread of the novel COVID-19 virus. However, what distinguishes our nation from the rest of the world is how the real estate market rapidly bounced back once the lockdown got lifted. This result was mainly due to the government’s rapid and strategic actions in favour of returning ‘normal life’ to the Emirates.
Today, Dubai’s real estate market is booming. And following ground-breaking performance back in 2021, many factors have been paving the way forward for this market in 2022.
Dubai as more than a holiday destination
The Dubai Emirate has long been the ideal holiday destination. Whether it be for shopping or exploring what UAE’s culture and heritage have to offer, this Emirate was and remains a popular touristic hub. However, today, Dubai has much more to offer other than luxurious sites for yachting or large shopping malls for unwinding. It’s a perfect place to work and do business, and, as many have seen, it’s an ideal home for those looking for one. This all stems from the government’s continuous efforts at elevating the UAE higher in the eyes of its citizens, residents, and tourists.
Its amenities
One of the reasons why the real estate market has witnessed such growth stems from the various amenities the city has to offer. Dubai fosters a diverse hub with high-quality infrastructure, access to various business opportunities, a sustainable environment with extreme regards to the safety of its residents and so on. Many have chosen this city as their home for the amenities it offers individuals and their families, not to mention tenants, international investors and foreign businesses given the low-price entry point for freehold properties, high capital appreciation and low mortgage rates.
High demand for luxury homes
As previously stated, Dubai is a popular luxurious destination. So, it’s no wonder that several individuals have been attracted by its unique appeal and decided to take advantage of all that the city has to offer. The real estate market boomed in 2021, driven by the high demand for luxury homes. In fact, prices rose by 16.5 percent year over year with a record of over 54 villas over $10 million each being sold by September 2021.
Despite the omicron variant and the continuous uncertainties brought by the progressing COVID-19 pandemic, Dubai continues to enjoy a pristine reputation due to its infrastructure, quality of life and diversity that drives investors, families and individuals to take up residence in this evergreen city. With the higher demand, the real estate market is shaping up to grow significantly further in 2022 with new and larger investments on the way. And despite the introduction of the new tax law, many foreign investors remain attracted to what the UAE as a whole has to offer. Consequently, all this aggregate to dictate an increase in real estate prices; however, since when has this affected Dubai’s economy and driven the market backwards?
Individuals looking to relocate to Dubai and investors who are looking to set up their operations there can view our website or directly send their request to info@benial.ae, where we’ll be more than ready to assist them in mapping their way towards the popular Emirate.