Dubai’s Property Market Set for Rapid Growth in Q3-Experts Predict
The stable increase in the population and availability of financing boost the sector reveals Dubai property market is headed for rapid growth in the third quarter. These factors have a crucial impact on alluring potential buyers, real estate prices, and fueling demand in the market. In this article, we will be exploring them in detail.
Factors Driving the Real Estate Market In Dubai
In the present market climate, the accessibility of financing takes centre stage, exceeding its usual importance. Many tenants are now opting for homeownership as a feasible option, as rental prices rise.
Including Dubai, the real estate market globally has been affected due to the global rise in interest rates. However, the emirate has been relatively sheltered from these effects because of its government regulations and political stability.
All these factors inculcate confidence in potential buyers and investors, promising a stable flow of interest in the city’s property market.
Because Dubai’s economy relies heavily on tourism and real estate, the ruling families’ business and political policies are key drivers of confidence among both new and existing buyers.
Another major factor affecting the market is population growth. Dubai has attested to a constant surge in its population year after year which directly impacts demand and supply dynamics. As of July 2023, Dubai’s population stood at 3,604,030, an increase of 88,766 individuals from the previous year. This population increase has impacted demand for properties in the upward direction, resulting in a natural surge in rates of available real estate.
Acknowledging this trend Dubai has released plans to dedicate 60 per cent of the city’s land to natural reserves and to expand public beaches in Dubai by 40 per cent. These plans aim to serve the ever-growing population stream through wider infrastructure growth plans and guarantee the sustainability of Dubai as the leading emirate.
What further supports Dubai’s real estate market is its attraction to international companies. Dubai’s prime location facilitates access to emerging markets in the Asia and Middle East, coupled with favourable tax policies and world-renowned infrastructure. As a result, demand for both commercial and residential properties in Dubai keeps on surging, fueled by the stream of international companies looking to establish their presence in the region.
Dubai Real Estate Market Experiencing Different Price Trends In Villas And Apartments
The present state of the Dubai property market shows distinct trends in rates for villas, townhouses, and apartments.
Dubai Production City comes out as the top-performing area, reaching Dh744 per square foot with an outstanding 23 per cent change over the last three months.
Reaching Dh697 per square foot, Living Legends reported a 21 per cent growth rate.
The well-established regions are also not behind in terms of price growth. Al Habtoor City and Bluewater’s Islands witnessed a 13 per cent and 10 per cent increase with prices reaching Dh2,058 per square foot and Dh4,044 per square foot respectively.
As compared to townhouses and villas, apartments in Dubai have shown higher rate changes over the past three months. The highest price change for townhouses and villas in Dubai was seen in Jumeirah Islands, reaching Dh2,006 per square foot, recording a 13 per cent hike.
Transaction activity has not shown any signs of slowing down, despite these price fluctuations. In fact, according to the Dubai Land Department, compared to the same period last year, the total sales transactions in Dubai surged by 57 per cent in Q2 2023.
The real estate market in Dubai remains robust, with booming transaction activity. Dubai luxury properties continue to allure high net-worth individuals.
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