by admin
Leading Buyers By Nationality Were From India, With The UK, Italy, Russia, And France Rounding Out The Top Five.
According to Betterhomes, a renowned real estate consultant, Dubai has remained a top target for Property Investors. Due to its excellent capital growth, high returns, and government-led programs that encourage investment in the real estate sector. All property market segments in Dubai experienced growth in the first half of 2022, with sales and values maintaining steady.
Dubai’s property market remained active and healthy in the first half of 2022, the report said. “Despite challenges in the form of higher interest rates and a rising currency.” According to the survey, purchasers from India topped the list of top buyers by nationality. With buyers from the UK, Italy, Russia, and France filling out the top five.
DLD (Dubai Land Department) announced 37,762 total units sold from January to June this year, setting a new record for sales in Dubai. This is a 60% increase over the same period in 2021. Additionally, compared to H1 2021, the overall value of sold homes increased by 85%.
While many real estate markets around the world are showing signs of slowing down. Due to rising inflation and the logical response in the form of rising interest rates. Richard Waind, group managing director, said he is confident that the Dubai market “is uniquely positioned to weather any short-term storm. And, since we have seen throughout the outbreak, could very well be a net beneficiary of global uncertainty.”
According to him, the uncertainty in the world may really benefit the UAE. The UAE’s fiscal position was strengthened by high oil prices. The average Dubai consumer may be better able to endure this normalization of rates. Because our market is less tied to mortgages than the bulk of the rest of the world, according to Waind, even though rising interest rates will surely have an effect.
“More expats are anticipated to go to the UAE as a result of rising taxes, inflation, and geopolitical unrest in the West and persistent covid restrictions in the East. The DLD has made excellent strides in the previous six months by making all real estate data available to consumers. Boosting transparency, and providing investors greater ability to invest, according to Waind. Dubai will continue to change employment and visa restrictions to attract talent. According to Waind, market prices are beginning to normalize.
“As sellers sought to profit from recent price gains, supply limitations in the secondary market appeared to be loosening over the past six months. Additionally, developers have increased launches and supported the off-plan sector in response to the improved market conditions.
We can anticipate cooler temperatures and the World Cup, which is sure to draw many additional tourists to our shores in the second half of the year. In the upcoming months, interest rates will likely continue to rise, and for the rest of the year, we anticipate modest increases in rentals and sales prices. However, historically speaking, rates and prices are still low, and yields and capital growth are robust. As a result, for those looking at the big picture, Dubai real estate is still one of the best investment options out there, he said.
While buyer demand climbed by 23% compared to H1 2021, the number of signed MoUs surged by 138% on an annual basis. Townhouse listings increased by 141 %, trailed by apartment listings by 18%, and villa listings by a more subdued 2%. The research states that Property Investors accounted for 68 % of all transactions while end consumers accounted for 32%. Mortgage-backed trades made up about 31% of all transactions.
While occupancy in freehold regions soared to 90% and occupancy rates in leasehold areas improved to 86 percent. The average rental costs for apartments, townhouses, and villas increased by 29 and 33 percent, respectively.
