Latest trends in the real estate industry of Dubai in 2021
By Rocky Real Estate
People are investing in Dubai Real estate for a very long time, especially from this pandemic situation. Because in their opinion, the price that is decreased now will indeed increase with a bang after this pandemic. So, for this reason, so many people are investing flawlessly in Dubai real estate.
Some essential facts about Dubai real estate
According to Knight Frank, residential property prices in the United Arab Emirates may reach a bottom in 2022, after a 7.1 per cent drop in Dubai and a two per cent decline in Abu Dhabi in 2020.
According to the UAE Market Review and Forecast 2021 published by the real estate firm and consultancy, new property supply levels in Dubai and Abu Dhabi is projected to decrease in 2023 and 2022, respectively. The market had been “remarkably robust” in 2020.
According to the forecast, if present trends continue, mortgage rates stay at or near record lows, and loan-to-value ratios remain at their current levels, prices would likely bottom out around the second half of 2022.
Prices are expected to begin to rebound six months before this in top areas with low amounts of new supply. According to a study published by the Investment Company Institute, investing professionals have recognized that the COVID-19 epidemic poses “short to medium term risks in nature rather than long-term concerns in market fundamentals”.
Taimur Khan, the Associate Partner at Knight Frank Middle East, said that regulatory reforms from both the federal government and municipal governments have substantially strengthened these foundations over the past year.
The resolution of several geopolitical problems throughout 2020 will also contribute to the continued strengthening of market fundamentals.
Consequently, despite some of the inherent difficulties that the real estate industry is now experiencing, we should remain optimistic about the future and think that there are pockets of opportunity across various market sectors.
According to business data, sales prices in Dubai will decrease by an average of 7.1 per cent in 2020, with flats dropping by eight per cent and villas dropping by 7.1 per cent, with villa prices staying “fairly stable.” The average cost of a new apartment building has decreased by 4 per cent since 2007.
The most desirable residential market
According to the National Association of Realtors, prices in top residential regions increased in the second half of 2020. For example, from July to December, the cost of apartments in Palm Jumeirah increased by 5.1 per cent, while the price of villas increased by 9.4 per cent.
The market for office space
According to the latest assessment, a ‘flight to excellence’ has been seen in the office sector in Dubai, with occupiers opting to improve their workplaces in the face of lower rental rates.
With an outstanding expectation, everyone is investing in Dubai real estate, and I am also sure that the price will surely increase. So, invest in Dubai real estate and wait for the time to grow it with a bang.