Are you looking to invest in a new home? Consider Dubai, the city of gold! Dubai has been attracting investors and homebuyers from all over the world with its luxurious lifestyle, vibrant culture, and tax-free environment. However, the real estate market in Dubai is constantly evolving, and 2023 could be a turning point for buyers. Here are the top 5 reasons why you should buy a home in Dubai before 2023.
Table of Contents
In September 2022, Dubai’s real estate market registered 8,649 transactions worth AED 24.417 billion. This was a 52% increase in volume and a 51.66% increase in value from September of the previous year. It was the highest performance for September over the last 12 years.
The off-plan market, which includes real estate sold before it is built, saw the highest volume and value of property transactions in terms of both volume and value.
In terms of volume, 4,439 sales worth AED 9.755 billion were registered; this represented 51.32 percent of all sales transactions. Regarding value, 39.95 percent of all sales transactions comprised off-plan properties. The market has also seen a remarkable rise in volume and value, 80.23% and 94.13%, respectively.
According to the Official Sales Price Index for the Emirate of Dubai by MO’ASHER, Q3 2022 recorded a remarkable performance for a quarter over the last decade.
Here are the most compelling factors for the real estate market in Dubai.
1- Dubai’s population will increase from 3.3 million to 7.8 million by 2040
According to the new Dubai 2040 Urban Master Plan, the city’s population is expected to increase from 3.3 million to 7.8 million by 2040. Considering such strategic directions and expansion, many more new real estate projects are underway in Dubai. These projects may provide more investment offplan opportunities to those looking to invest or want to live in Dubai on installment payment plans.
The current trend of strong demand may see a short supply of ready-to-move apartments, which can push Dubai’s real estate market higher.
Some areas near Dubai and Sharjah border have also seen higher demand, and the average price of the home is relatively higher than last year (2021).
2- UAE Golden Visa reforms will drive Dubai’s real estate sector growth
On 18th April’22, the UAE Cabinet announced changes to the country’s visa program to benefit the economy by encouraging investment and entrepreneurship. As of May 1, long-term visas include UAE Golden and Green Visa, and long-term visit visa rules are being granted to investors, entrepreneurs, startup owners, exceptional talents, scientists, and professionals in various fields. Long-term visa benefits will extend to immediate family members.
These visa rule changes will increase the staggering demand for residential space in Dubai. Listings of Dubai properties already show higher numbers of searches related to property for sale related terms like houses for sale in Dubai, homes for sale in Dubai, luxury villa or luxury homes for sale, Villa for sale, Villa for sale in Dubai, property for sale in Dubai, etc.; which means a high number of people are looking to buy homes for sale in Dubai.
To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations
Anthony Hitt
3- Dubai Ranked Best on the Fair-Valued Property Index
In October 2022, Dubai ranked as fairly valued on the UBS Global Housing Bubble Index, which analyzes residential prices in 25 cities to highlight those with the greatest housing bubble risk. This is another factor inviting international investors to take advantage of the relatively fair price market where the upward potential exists for many more years.
Foreign investors are looking to buy in Dubai villas, especially the luxury villas for sale in popular locations in Dubai, are doing record buying. This trend appears to continue and will push the prices higher in the coming years. Consider Dubai property investments sooner if you want to enjoy good yields.
Source: https://www.ubs.com/global/en/wealth-management/insights/2022/global-real-estate-bubble-index.html
4- Contented Strong Real Estate Growth Momentum
Dubai has recorded strong real estate growth momentum and demand in 2022. Dubai is one the best liveable city which offers an excellent quality of life, fabulous infrastructure, and many opportunities for families to enjoy living and businesses to prosper. Demand for residential and commercial property is robust, and prices are rising steadily. Rental rates are also increasing compared to 2021, which is positive news for landlords and investors. There are no material signs of the real estate market in Dubai slowing down anytime soon.
September 2022 Mo’asher Results at a Glance
- The overall monthly Index recorded 1.358 and an index price of AED 1,316,023.
- Apartments monthly Index recorded 1.442 and an index price of AED 1,240,859.
- Villas / Townhouses monthly Index recorded 1.353 and an index price of AED 2,176,692.
- Overall quarterly Index recorded 1.383 and an index price of AED 1,315,810.
- Apartments quarterly Index recorded 1.444 and an index price of AED 1,232,604.
- Villas / Townhouses quarterly Index recorded 1.276 and an index price of AED 2,134,295.
5- The UAE Goal is to Get 40 Million Tourists by 2030
The UAE aims to get 40 million tourists by 2030 as part of strategic goals to boost the economy and generate jobs. The UAE is developing and improving its infrastructure and simplifying visa policies to reach its goal. The UAE has already made significant achievements in growing its tourism industry by attracting innovative projects, promoting entrepreneurship and investment, and supporting skills development.
More travelers mean more demand for residential places in Dubai, which will also boost the real estate sector. It is already expensive to buy apartments for sale in areas like Dubai Marina, Down Town, and Business Bay. Short-term luxury home rental demand is already rising as investors are looking to buy ready villas for sale in villa communities close to Dubai attractions.
Hot Areas For Dubai Properties for Sale
Here are some hot areas for property seekers looking to buy a freehold property in Dubai.
- Palm Jumeirah
- Arabian Ranches
- Dubai Marina
- Downtown Dubai
- Jumeirah Golf Estates
- Dubai Hills Estate
- Emirates Hills
FAQs
What are people looking for when buying a house in Dubai now?
Foreign investors primarily consider neighborhood development, location, city access, potential investment returns, and expected rental income.
Can a foreigner buy a house in Dubai?
Yes, foreign investors can buy freehold properties in Dubai or leasehold property for 99 years. Leasehold property rights are fixed for up to 99 years, and one does not own the property’s land. In a Freehold ownership, rights of the property land and the property can be sold, leased, or occupied as per the owner’s rights.
Is buying home in Dubai a good investment?
Surly, Dubai property investments are solid investment opportunities. Factors like no capital tax, a fairly priced market, low risk of the real-estate bubble, and strong governing laws of UAE protect investors. The recent real-estate trends are solid and indicate positive growth in Dubai real estate market.
Is it a good time to Buy Home in Dubai?
The recent real-estate trends are robust and indicate a positive momentum for the growth of Dubai real estate. Currently, the demand and supply are fairly balanced. However, prices will shoot up once the demand increases the supply, which appears to be the case in coming years due to the strong real estate market trends.
Can I get residency if I buy property in Dubai?
Yes, the new UAE visa laws offer residency long-term residency to property investors. The real estate must be completed upon purchase, and its value must be at least AED 1 million (US $272,057).
What is the cost to buy a house in Dubai?
The buying cost will vary depending on the size, location, and type of property you want to buy in Dubai. Here are a few details of the cost associated with purchasing a property in Dubai.
- Dubai Land Department (DLD) Fees 4% of the purchase price
- Registration Fee: Below AED 500,000 Valuation fee is AED 2,000 +5% VAT, and above AED 500,000 valuation is AED 4,000 + 5% VAT
- DLD Mortgage Registration Fees 0.25% of the loan amount
- DLD Transfer registration fees: Seller and Buyer each pay a 2% fee on the property value
- Bank fees (property valuation, mortgage fee, life insurance)
- Real Estate Agent Fees: 2%
- Real Estate Agency Conveyance Fee: around AED 6,000 to AED 10,000
Conclusion
Regardless type of property, a family villa, townhouse, apartment, or luxury home, the Dubai and United Arab Emirates property market offers lots of choices to foreign investors who want to buy a home in Dubai or want to invest in Dubai. Consider your personal objectives and reasons to buy a property. It is a dream for many to buy home in Dubai to enjoy the highest living standards.
Also Read:- 5 Reasons to Buy Home in Dubai Before 2023
