The Influx of Foreign Capital and High-Net-Worth People into The Local Market Has Helped The Emirate’s Real Estate Market Rebound Significantly Since COVID-19.
Because of new initiatives regarding visa regimes, such as the Golden Visa, residents of Dubai who have lived there for decades are purchasing an increasing number of properties and establishing the emirate as their home.
The largest private developer in Dubai is optimistic about the future of the local real estate market. Because of the emirate’s effective management of the coronavirus pandemic and a large number of genuine homebuyers and families who are choosing to settle in Dubai permanently.
In order to provide their families with security, Dubai residents who have lived here for 20 years without purchasing a home are being encouraged to do so by the Golden Visa and other new visa programs. Many of employees have worked for us for 10 to 15 years, but they have never purchased a home.
They are willing to invest in real estate. Because they want to provide their family with security under the new visa regime. Even if they lose, they will not have to leave if they have a Golden Visa, stated DAMAC managing director.
Due to the influx of foreign capital, high-net-worth individuals, and billionaires into the local market, Dubai’s real estate market has experienced a significant uptick in prices and rents across the affordable, mid-range, and high-end segments.
“The type of investment that went into purchasing real estate over the past 18 months. Actually differed greatly from what it was in the past. Because of how the government handled the Covid-19 situation, buyers were put in the spotlight globally. Moreover, many genuinely wealthy people moved here with their families and businesses. Which led to the creation of job opportunities.
People came here and purchased numerous properties in Dubai. Because of the unpleasant circumstance between Russia and Ukraine. In order to have a second safe home for themselves and their families, she added.
About 7,000 units were delivered this year, and 8,000 units are expected to be delivered the following year. This year, it launched over 10,000 units that are currently in construction, and there will be a few more launches in the upcoming months. DAMAC has already shipped 40,000 units since it began.
The Top 5 Are Russians
She continued by saying that many large startups have also relocated their offices and corporate headquarters here. Which is helping the local real estate market. “50 to 100 people relocate to Dubai for every office that opens. Because of market went from being highly speculative to being very end-user-focused. Rich people needing homes in Dubai have really taken off in the luxury segment. A first or second home is what buyers of $100 million or $20 million penthouses are looking to purchase. These buyers are real people with real money.
The managing director of Dubai’s largest private developer said that the way the government handled the Covid-19 situation gave the buyers “a great deal of confidence.” Pakistani and Indian investors have consistently remained in the top five investors for DAMAC.
“We’ve seen an influx of Russian buyers who have climbed into our top five in the past 18 months. In addition to English and French buyers, we are now noticing many European buyers. A significant amount of investment is coming from Australia and, more recently, Lebanon. Since China has been closed for three years, interest in the country has recently increased, she continued. She emphasized that since new buyers genuinely end users rather than speculators. There is no cause for concern regarding the oversupply of units in the markets.