Major factors that will have a positive impact on the Dubai real estate market

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Dubai’s property sector registered a total of 6,651 deals worth AED 18.3B (USD 4.98B) in May 2022, making it the best May in 13 years in terms of real estate sales volume and value. At the same time, according to Arabian Business, transaction figures rose by 51.5% year-on-year in sales volume and there was a 65.4% increase in sales value compared with May 2021.

Below we will review the latest trends in the region’s ever-evolving real estate scene that could influence the markets in the nearest future:

1. New amendments to the Golden Visa is a major driver of Dubai’s real estate sector

During the latest visa overhaul, the UAE government announced new residency programmes, including Freelance Visas and Green Visas, as well as the opportunity to obtain a Golden Visa when acquiring an off-plan or secondary property for a minimum of AED 2M (USD 545K). The property can also be mortgaged to qualify for this type of visa. As a result, this move will bolster further foreign investment into the country and will provide residents with a strong reason to invest in the UAE long term. In particular, the new change will appeal to young professionals, who will have the ability to contribute to the country’s economy while also being able to afford a home, as the upfront cash deposit is less.

2. The Dubai Land Department (DLD) are making all property information publicly available which will strengthen transparency

In April 2022, the DLD announced that its real estate data will be made publicly available on its website. This means that everyone has access to gifts, sales transactions, mortgages, Ejari registrations, land ownership, building and unit data, valuations, as well as the developer, broker and projects data. This includes unique identifiers for each property deal such as property ID’s and Ejari contract numbers. As well as all this, in 2020 the JLL Global Real Estate Transparency Index was launched, which placed Dubai as 36th in terms of transparency. According to Lynette Sachetto, one of leading UAE consultants, this proactive initiative positions Dubai, on par, amongst other mature property markets.

3. The use of cryptocurrency to pay for purchases and rent will boost the position of Dubai’s property sector

Recently some of the largest UAE developers, such as Nakheel, DAMAC Properties and Binghatti Developers, have cemented the use of crypto for real estate deals in the UAE. For example, Nakheel enabled its customers to pay for their rent, service fees and real estate purchases via cryptocurrency. At the same time, DAMAC Properties and Binghatti Developers revealed that they would start accepting Bitcoin and Ethereum as forms of payments for property purchases. According to Christopher Flinos, CEO of Hayvn, the use of cryptocurrency will attract multiple first time homeowners to the UAE, as about 68% of crypto holders are under 30, and together they make a market of USD 1T. The perks of crypto transactions encompass the absence of cheques, loans and fees, as well as lower cost.

4. Demand for homes that bolster mental health

According to a study conducted by the mobile tech company; Kisi, Dubai residents are among the most overworked in the world. As a result, a quarter of homebuyers in the emirate are opting for living spaces with amenities such as spa-inspired bathrooms, freestanding bathtubs, meditation corners, indoor plants, and fixtures and layouts that allow more natural light into the property, among others, in order to enhance their mental health. Potential homebuyers are focused on finding the right community, with parks, play areas, gyms and swimming pools, to enjoy spending their time. Not forgetting access to lifestyle facilities, such as schools, retail outlets, beauty centers and restaurants, as some communities are affected by traffic congestion, therefore, leading to the increase of stress levels.

5. Top developments in 2022

Amidst an influx of HNWIs in Dubai, local luxury real estate keeps hitting record-breaking sales, and from 2021 to date, upscale properties by all large developers in Dubai have fully sold out, as reported by Arabian Business. For instance, Signature Developers marked the sale of its full-floor penthouse at the Residences JLT last week for AED 36M (USD 9.8M). Located on the last floor of the Taj hotel, the penthouse boasts wall to wall decor, private elevator access, and a bespoke study, in line with the work-from-home trend.

It is worth mentioning that currently there is the most costliest villa in Emirates Hills, XLV Residence, available for sale at a cost of AED 225M (USD 61.26M). Developed by Select Group, this ultra-refined residence boasts furnishings and interiors by Fendi, Cavalli and Gaggenau.

Over the course of the first 2 quarters of 2022, Dubai has witnessed the launch of an array of luxury projects. These include, but are not limited to AVA at Palm Jumeirah, Elysian Mansions, The Ritz-Carlton Residence and Six Senses Residences the Palm, as developers are trying to fix the undersupply of luxury real estate in Dubai.

Elysian Mansions
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Elysian Mansions

Located in Tilal Al Ghaf

Elysian Mansions The Latest Spacious ultra-luxury homes by Majid Al Futtaim. 🔥 Spacious 5 & 6 Bed Villas in Tilal Al Ghaf. Starting from AED 18,000,000.

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