The market of real estate in Dubai and the entire UAE has been greatly transformed over the past few years, even though expats and locals want to buy property in the UAE. One of the driving factors was the crisis caused by the pandemic, thanks to which the market ceased to be difficult in terms of prices and the housing purchase process for foreigners, but became quite loyal and democratic. Other changes and the current state of the UAE real estate market are described on the Emirates.Estate portal.
Situation at the beginning of 2021
The period from 2019 to 2021 was a real test of strength for the UAE and Dubai in particular. The market was undergoing serious fluctuations: from falling to startling growth. The decline in the housing development sector caused by the lack of sales has been replaced by record demand. During this time, the number of completed real estate transactions hit 5-, 8-, and 10-year highs.
Market challenges
As a result of the crisis experienced, old issues have aggravated and new ones have appeared in Dubai. The most obvious of them are:
- An imbalance between supply and demand caused by restrictive measures in the midst of coronavirus. The main challenge was the oversupply, which was in no way paid off by demand.
- The elite housing market stagnation. The minimum demand in the market has led to a sharp drop in the elite housing cost and rent.
Despite this, there was little activity in the commercial and construction real estate markets. In connection with the massive transition to a remote work format, interest in studios and small apartments has also increased.
Current market opportunities
In 2021, buying a property in the UAE is a profitable investment in your own future.
Now entrepreneurs and investors have unlimited opportunities for business, including through the affordable purchase of real estate.
This is largely the merit of the UAE government, which introduced the anti-crisis measures in time, thanks to which the foreigners have more opportunities. Which ones?
- Simplified process for obtaining a resident visa
- Inspection and purchase of real estate online
- Prospects for obtaining a business license for 3 years with the possibility of renewal
- Advantageous offers for prime properties
- Installments and mortgage loans at reduced interest rates
- High ROIs on rental properties
- Low prices for off-plan apartments
Appropriate measures to support the real estate market have helped revive the Dubai economy. The number of housing investors and regular buyers has increased, which is an eloquent sign of the UAE’s growth.
UAE real estate purchase
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