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Dubai – a trendy real estate market

Dubai is a buyer’s market as the real estate sector rebounds from a major correction, offering a wide choice and attractive prices to homeowners and investors.

As one of the most stable and prosperous cities in the Middle East, Dubai is a dynamic hub for business, entertainment and leisure. Dubai is located in the United Arab Emirates, which consistently ranks in the top ten preferred countries for expatriate workers, attracted by the luxurious lifestyle, high income potential and tax-free income offered by the country.

In the past, investing in property in Dubai was an almost guaranteed way to grow wealth at an accelerated rate. However, following the drop in oil prices in 2014, the real estate sector in Dubai has undergone a lengthy correction with significant drops in purchase and rental prices for both villas and apartments. The resurgence of the pandemic and Dubai’s reputation as a safe haven has led to a resurgence in demand for Dubai properties and an increase in property prices.

In 2021, Dubai saw the highest volume of real estate transactions ever recorded in a single year. The first quarter of 2022 was the emirate’s best quarter since 2010, and sales of high-luxury properties also reached new records. There is still room for growth. According to Knight Frank data, values are still an average of 25% below their 2014 peak, although villas have performed better and are now only 12.9% below the last market record in 2014.

Supply is catching up to meet demand. 37,000 residential units have been delivered in Dubai in 2021. Knight Frank expects an additional 100,000 new units to be supplied by 2025, 25% of which will be villas. A total of 50,000 units are expected to be completed by the end of 2022.

With strong government initiatives to attract new residents and a healthy demand for real estate, the time is right for homeowners and medium to long-term investors to turn their attention back to the Dubai real estate market.