According to the 2022 EMEA Real Estate Report published by Berkshire Hathaway HomeServices global headquarters, Dubai’s property market has proven remarkably resilient during the pandemic, and more than 84 percent of real estate professionals expect competition within Dubai’s real estate market to ramp up going forward.
Over the past 12 months, Berkshire Hathaway HomeServices’ residential real estate professionals in Dubai, the United Kingdom, Germany, Italy, Spain, Portugal, and Greece shared their experiences in the report.
More than two-thirds (68%) of respondents in Dubai indicated they had seen growth in the previous year and expect it to continue, with a notable 77 percent anticipating the market to grow even more in the future year, the highest proportion reported across EMEA countries. These results, when combined with a positive expectation for future growth, show that Dubai’s real estate market will continue to thrive in the near future.
Since records began, the UAE’s real estate market had record-breaking growth in the fourth quarter of 2021. With a total of 6,989 transactions totaling AED17.95 billion in November 2021, Dubai had its biggest month of sales ever. When it comes to transaction volumes, Dubai reported a total of 57,043 for 2021, up 73.6 percent from 2020 and 51.6 percent higher than 2019.
Real estate professionals believe Expo 2020 Dubai has aided Dubai’s growth over the last year, citing a rise in the market value of the property as well as increased demand both regionally and internationally.
With the UAE at the forefront of global innovation and a physical location at the center of the globe, Dubai is gaining recognition and respect from investors across the EMEA area and the rest of the world. According to Dubai’s real estate professionals, around 60% of residential real estate investment comes from outside the region, with less than half (40%) of demand coming from within the city. According to the statistics, international investors from EMEA account for a third (32%) of the total, with just over a quarter (27%) coming from outside the region. Furthermore, more than half of respondents based in Dubai believe the balance of international vs domestic investment will shift in the next three to five years.
“We must recognize that Dubai’s market has totally transformed. In just a few years, we’ve seen a marked shift from a market that was almost entirely domestically driven in the past, to one that is attracting more and more foreign and institutional capital. The country’s investments in world-class infrastructure coupled with the exceptional lifestyle and amenities, from the world’s best hotels and restaurants have helped transform the city into a destination that people want to live in. We see this to be true as people from all parts of the world including Europe, India, and the UK continue to choose to live in Dubai and furthermore add up to the tally of over 200 nationalities of expatriates that make up for roughly 85 percent of Dubai’s population.” further commented Dounia.
When it comes to the sorts of homes in demand, more than half (55%) of real estate agents believe the epidemic has boosted demand for starter homes. Dubai is traditionally thought of as a high-end, second-home destination, but the findings show a trend toward first-time buyers in the rich hub. The pandemic has also shown that demand has increased for most property kinds, but most notably, detached homes have increased by 57 percent, while apartments and flats have increased by 58 percent in Dubai. Furthermore, Dubai has the highest need for accessibility to facilities, with nearly 70% of respondents citing it as the most important factor reported across the EMEA area.
