Is Dubai real estate on the verge of a comeback?
When economies throughout the globe were suffering as a result of the pandemic-induced crisis, Dubai’s real estate market soared to unprecedented heights.
The phase recorded over 12,000+ transactions in the first quarter of 2021 alone and afterward saw a 51 percent increase in the last quarter since Q1, 2021. With more international buyers entering the market and a few headwinds in the pipeline, the Dubai real estate market remains a hotspot for the time being.
Without question, Dubai’s growth from now until 2021 has been remarkable in many aspects. Thanks to years of robust infrastructure and population growth, the market surpassed essential global asset markets, delivering the best residential capital rise of 17 percent in 2021.
In terms of transactions, the Dubai realty market has also piqued the interest of many buyers. According to the Dubai Land Department’s (DLD) figures, revenue has increased, and the total number of real estate transactions has risen by 51 percent since Q1 2021.
So, what is the actual cause of this massive increase? Taking you through such advancements, Square Yards presents you with a number of the doable aspects that sparked the Dubai real estate phase and how it will shape the real estate zone in the year 2022. Let’s get started!
Because of the movement limitations, the global disruption caused by COVID-19 has had a long-term and significant crippling impact on economies throughout the world, completely changing the way markets used to work. It was no different in Dubai’s real estate phase. According to data, Dubai’s vibrant real estate market, which saw 10,000 transactions in Q1, 2020, had a sharp decline in revenue in the pandemic-hit second quarter of 2020, with only 5,571 sales.
As a result of this blow to the real estate market, major real estate conglomerates and the government have announced relief plans for 2020 in their respective areas. To encourage their clients and business partners to keep up with the changing industry, such apps offered deferred billing plans, rent reliefs, and exemptions of specific charges.
On the other hand, the assets market has experienced a remarkable recovery! It became clear that the strong management presented in Dubai with the help of stakeholders provided a haven for people when the rest of the industry was still suffering from the crisis. Resonating with the restored confidence, the real estate sector saw more robust demand, with income climbing back to 10,000+ transactions by the end of 2020.
Despite the difficult conditions that arose with using the real estate zone, the shift to a healing sector was made more accessible by utilizing the government in the most environmentally friendly way possible. Apart from large-scale immunization campaigns, the authorities devised several game-changing visa schemes that positively influenced housing demand. Some visa programs included a ten-year residence for expatriates and five-year renewable retirement visas for individuals/families that met specific criteria. A new self-funded far-flung work visa was also established, allowing individuals from other countries to stay in and work remotely from the UAE, despite their agencies being located in separate countries.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
