The real estate market forecast for 2022 has continued to show post-pandemic resilience by recording sales transactions worth AED30.5 billion ($8.30 billion) in November, among others, cited Houzon, the leading real estate company in Dubai.
With 10,941 sales last month, Dubai experienced a 58.5 percent increase compared to the same period last year. The off-plan sector in Dubai led the way with record sales. Among the high-net-worth individuals (HNWIs) in Dubai, over 4000 have been recorded, a record high. Almost 70,000 millionaires live in the city and are seeking UAE real estate assets in desirable areas. Tourism is also booming in GCC states as a result of the World Cup in Qatar, and many transit visitors are considering off-plan purchases in Dubai as investments.
Last month the tenancy market recorded 53,086 registered contracts, down from 53,756 in October, according to Houzon, real estate agents in Dubai.
“Over these past quarters, the Dubai real estate industry has demonstrated a positive momentum, demonstrating the robustness of its property market. The positive sentiment surrounding real estate investment opportunities in Dubai has been boosted by various governmental reforms and initiatives, said Nishchay Mehra, Director at Houzon.
Dubai Marina, Palm Jumeirah, Dubai Hills Estate, Jumeirah Village Circle, Downtown Dubai, Business Bay, Mohammed Bin Rashid City, Jumeirah Lakes Towers, DAMAC Hills (Akoya by DAMAC), and Jumeirah Beach Residences were some of the areas with the highest demand Dubai real estate properties searched for sale in November, according to proprietary property data by Houzon.
According to the Dubai real estate rental market report for November, the areas that were in the most demand were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Palm Jumeirah, and Jumeirah Lakes Towers.
Off-plan investments involve a few factors that investors should consider before proceeding. Consider these factors when deciding whether or not to invest in Dubai off-plan projects.
Things To Consider Before Buying Off-Plan Real Estate In Dubai
Delays Are Common: Off-plan property buyers often face delays in moving into their new home and this can be a big hindrance, especially if you are renting at the time. Having a contingency plan in place will keep you from being caught off guard by delays.
Fluctuations In The Market:
Although the present market climate seems to point toward capital gains and high returns from property investments, the opposite is also possible. You may have to wait many weeks before you receive the keys after you purchase the property. Off-plan properties in Dubai are a great investment, but you need to be aware of the current market trends.
Managing Expectations:
When buying off-plan real estate in Dubai, it is important to manage your expectations. You may have to make your decision based on brochures, a showhouse, and a floor plan. End results may be affected by the quality of construction materials. To get an idea of how the finished property will look, you should research the Dubai real estate developer you’re thinking of buying from and look at some of their other ready properties.