Dubai has progressed even in a pandemic. No matter how bad the situation has been for the past two years, investors are still driving crazy when it comes to the real estate industry of Dubai. But, the real estate industry of Dubai is a bit tricky to understand; one wrong move and all your hard-earned money can go down the drain. Indeed, Dubai is a place to live and invest. The post-pandemic economic recovery of the UAE is commendable. If you look at the statistics, you will be amazed to see that real estate is booming.
The most surprising part, the villa segment, was not witnessing any growth since 2014 also experienced a boom. Nonetheless, the second quarter of 2021 showed that Dubai’s residential property market showed progress of 3.8% compared to the previous quarter. The villa’s segment fully participated in this growth with a rise of 7% and an annual gain of 6.3%. But, the prime villa market showed a slope of 1.65% lower than the previous quarter. The exponential growth of Dubai makes the investor stay and invest more. The increased demand for the luxury sector is coming up with many new and exciting opportunities for investors.
The property prices of Dubai reached $251.6 per square foot in the first week of July. The statistics showed the progress of Dubai, as it was the highest recorded in two years. The completed villa communities in Dubai with uncountable facilities worked as a booster. However, the European demand and the European buyers are evolving and driving Dubai’s real estate industry to progress. Not to mention, Dubai’s residential property market is also on a recovery track, and the prices have increased to 2.1% in June, the highest recorded in the two years. Dubai has a lot to offer investors and buyers. However, Dubai has not shown any such growth since 2014. But, the pandemic brought a lot of new opportunities and gains for the investors. European demand was the driving force behind the commendable progress of Dubai’s real estate industry.
If we look at 2020, property prices started to rise; and the recovery phase started. However, nobody was expecting such strong growth. The high price was seen for the villas and traditionally sought-after communities. The first of 2021 was great news for Dubai’s real estate industry as the demand from Europe was pushing the emirates to progress with the right approach.
The apartment villas traditionally sought communities, townhouses; the real estate industry showed commendable progress. Not to mention, ready-to-move properties continued to strive more with the demand. The off-plan developments also showed good progress. With the new project and projects, the sales of the completed property may drop in the market. However, the off-plan or completed project and properties jumped to 51.2% in June. But, with the new constructions, there is a prediction of dropping sales.
The market of high-end properties and other transactions is also a bit tricky to understand. June was a strong month for high-end property transactions, and over 111 transactions were recorded for this segment. However, around 117 transactions were recorded in May. According to the statistics of Q1, the dealings of ultra-luxury properties also spiked and represented nearly double what was recorded in the last year. Not to mention, last year was severely impacted by the coronavirus pandemic. But, here is a catch; high-value transactions were also done in the Emirate Hills community. The European buyers are emerging, and they are the driving force for high-end properties. Not to mention, the mortgages for villas and townhouses increased while loans for both apartments and loans declined, which clearly showed the buyer preference.