Government Reforms Will Lead to the Growth of Real Estate Sales in 2022

In Q4 2021 the real estate market in Dubai saw record-breaking growth. November was the best month ever in the history of real estate sales in Dubai, as the total number of 6,989 transactions worth a colossal AED 17.95 billion (USD 4.89 billion). In total, the number of transactions in 2021 amounted to 57,043 which was 73.6% and 51.6% higher than in 2020 and 2019 respectively.

As for Abu Dhabi, the capital of the Emirates, transactions worth AED 16.2 billion (USD 4.41 billion) were registered in Q3 2021. As a result, prices have increased by 1.6% compared to the previous year.⠀

Such numbers in 2021 should mean that in 2022 the real estate sector in both Emirate’s will continue to develop, mostly due to the series of reforms that were taken to support the economic growth. For now the UAE is a leader in handling COVID-19. It’s in the TOP 10 countries recognised by the Global Response to Infectious Diseases Index due to their approach in managing the pandemic, which includes the newest technologies which aims at limiting the spread of COVID-19, its vaccination programmes and the country’s high testing rates.⠀

Foreign investors and expats wishing to build a career in Dubai choose the city due to its high safety levels, infrastructure development, as well as visa reforms that were recently implemented. For now, foreigners have the chance to apply for visas for digital professionals, entrepreneurs, retirees and talented individuals who want to stay in the country for a long period of time. These types of foreigners who come to the emirate, will eventually start thinking about obtaining a real estate unit or making an investment.

Another factor that is attracting foreigners to Dubai, is Expo 2020 which has only recently ended. Experts consider that Expo led to a 15-30% increase in real estate transactions in Dubai because the number of people choosing the emirate as a tourist destination is growing, as well as choosing Dubai as a permanent place to live, or to gain a passive income.

Even though there are still ups and downs in the Dubai real estate sector, it has always been considered a luxurious market, demanded both by buyers and tenants. Real estate in Dubai costs less than in a majority of other popular cities across the globe like London or Tokyo, however, the ROI in the emirate is up to 10% higher than in other cities that are popular among investors.

These factors are what attracts foreigners to the city. While business professionals, singles or couples without children consider living in central areas of the emirate close to their place of work, couples with children prefer to buy villas and townhouses in family-friendly communities located in other parts of the emirate.