Due to the government’s relaxation of most pandemic-related restrictions, which will boost the tourist, aviation, hospitality, logistics, and retail sectors, experts believe Dubai real estate is poised to resume growth. The property sector will ultimately benefit from the relaxation of travel restrictions. That added in place to prevent the Covid-19 outbreak, according to analysts, top executives, and industry experts. They claimed that despite the epidemic, real estate continued to grow steadily. In addition, this time, investors will not have any significant obstacles to visiting or making investments in the UAE.
As long as there is, a strong demand for property prices will continue to rise, according to director at ValuStrat. Regarding demand for residential and commercial properties in Dubai, we can continue to anticipate strong growth. Market has not been affected by the pandemic limitations, with sales continuing at record pace over the past 21 months. However, with the rising cost of living, rising mortgage rates, the strengthening of the US dollar, and the projected new supply, this trend could shift. According to the most recent data, Dubai real estate experienced record sales during the first nine months of 2022. As buyers and investors flocked to the emirate to buy homes.
“With more than 67,000 transactions taking place between January and September 2022. The overall sales value exceeded Dh180 billion, setting a record for the first nine months of any year for sales value. According to the most recent data from DLD, emirate previously registered Dh116 billion in sales during comparable time in 2009.
Promising Future Ahead
The relaxation of Covid-related regulations, according to CEO of Samana Developer, will hasten the expansion of the real estate industry. “Right now, everyone just wants to move on and forget about the pandemic. No Covid restrictions will promote greater travel. Greater inbound and outbound tourism will improve the value of real estate in Dubai “To Khaleej Times, Farooq spoke.
According to David Abood, partner at real estate consultancy Core, the Dubai property market has maintained its strong momentum since the beginning of 2022. With robust growth seen across performance measures for all asset classes.
“Transaction volumes kept increasing, with the third quarter of 2022 marking the second-highest number of transactions overall. Moreover, the greatest value of secondary market transactions closed in a quarter.” We expect socio-economic sentiment to improve further as we return to pre-pandemic levels with travel, mobility, occupancy levels, and regulations (particularly the recent announcement that masks are no longer required, with some exceptions) indicating a return to normalcy,” Abood told Khaleej Times.
HNWIs to Lead
According to Ata Shobeiry from Zoom Property, Dubai property market has a reputation for being extremely resilient to outside influences. “When the epidemic in the area was at its worst, there was a decline. Because of government initiatives, a successful vaccination campaign, and developer incentives, it swiftly recovered and has cruising ever “said Shobeiry.
“And now that the pandemic limits are unofficially lifted, the market will keep growing. Several HNWIs and overseas investors have already expressed interest in purchasing real estate in Dubai, as seen by the market’s success over the past several months “said he.
According to Ayman Youssef, vice-president of Coldwell Banker in the UAE, travel and tourism make up a sizeable portion of the country’s GDP and have a considerable impact on a number of commercial, industry, and economic factors. In addition that this sector employs 10% of the workforce. Which is a sizeable portion of the population, the influx of tourists, and the relaxation of visa requirements. Moreover, the expansion of business opportunities will inevitably lead to a greater demand for housing and real estate facilities.
It has a cascading effect as travel and tourism become more accessible. There will be an influx of tourists, businesspeople, and investors, which will improve the economy and boost population. Consequently, this will raise demand for real estate properties and lead to higher pricing,”
Villa Sales to Dominate
According to Tuaima of ValuStrat, the demand for villas will remain high after Covid. “With the exception of Palm Jumeirah and Emirates Hills, where villa prices are currently significantly higher than their 2014 highs. Villa and townhouse prices have increased by 52% from the pandemic’s bottom, although overall they remain below the top. Despite slower growth rates, demand expected to remain high, particularly for larger, conveniently placed homes”.
According to Farooq of Samana Developer, end-user demand for our projects is now above normal according per DLD states. “Investor interest is not limited to villas or penthouses; it also includes high-end flats and luxury properties. Which are becoming more and more popular among the new millionaires and billionaires who are moving to Dubai,” he said.
Villa Supply Is Limited
Villa demand will continue to be high because to supply limitations, according to Abood of Core. “Yes, there is a supply shortage due to the high demand for villas, which is reflected in the rise in villa prices and occupancy rates. For many residents, especially for families with children, the desire for larger unit types. Especially villas and townhouses with enough usable outdoor space and masterplans offering a variety of services and a strong feeling of community. That remains a crucial decision-making factor “said he.
The majority of current villa occupants would choose to move to more inexpensive places to continue living in villas, he said. Even if we expect some, demand to shift from villas to apartments because of the high prices.
Villa prices in a few neighborhoods continue to climb by double digits each month, according to Shobeiry of Zoom Property. “Consider Dubai Hills Estate and the Palm Jumeirah as examples. In August 2022, prices in these localities rose by 11.5% and 18%, respectively. The demand for villas is rising despite this substantial price hike. This demonstrates unequivocally that the villa market would continue to experience robust demand even after Covid.
Sales of villas increased during the epidemic as people chose more room than flats. “We are certain that this trend will remain and we can expect moderate increase,” he added. “While the demand for the villa and luxury category did rise up during the pandemic. As individuals were looking for bigger and better working spaces due to the shift in lifestyle and work schedules. The demand for beachfront houses is now high while the supply is constrained. Thus, he predicted that the ultra-luxury segment would increase at a slower rate while beachfront properties would continue to grow.