The high level of activity that began in the residential real estate market in Dubai in 2021 maintains a positive growth trend in 2022

Dubai’s residential real estate market in 2021 recorded over 52,000 apartment and villa property transactions, worth a total of AED 114.2B (USD 31B), which exceeds the figures for 2019 and 2020 combined. In addition, sales for last year accounted for 39% of all USD 10M home sales in the Emirate of Dubai since 2010.

A high level of activity in the residential real estate market in Dubai has also been observed in 2022, as the emirate emerges from a Covid-19 slump. According to the statement from CBRE Dubai Residential Market Snapshot, there has been, and continues to be an increase in the volume of transactions in Dubai. For example, in January 2022 sales volumes reached 5,517, which exceeded the figures for January 2021 by 80.2%.

The average prices for buying and renting real estate in the emirate also demonstrate positive dynamics, as the average price for apartments increased by 8.5% and villas – by 21.8%. The average rental price for apartments increased by 8.3% and villa rentals increased by 22.8%.

To date, elite real estate is gaining popularity in the emirate, both for purchase and to rent. This trend has been observed since 2021, when prices for luxury real estate in the emirate rose by a record 44% after a seven-year decline. Dubai ranked first place in the Knight Frank: Prime International Residential Index 100 (PIRI 100), according to their latest research The Wealth Report.

According to Knight Frank’s Global Head of Research, Liam Bailey, the luxury housing boom in Dubai will continue in 2022. By the end of the year, the price increase will be approximately 10-12%, as further growth in prices for luxury residential real estate is expected. Investing in real estate in Dubai is a reliable and profitable option in 2022, taking into account the steady increase in housing prices in the emirate. The main advantages of investing in the city are the absence of income tax for residents, including income from renting out real estate, a stable income at 7-10%, mortgage loans at low rates, as well as a wide selection of properties.

Real estate in the emirate can be purchased for cryptocurrency, which has been gaining more and more popularity around the world in recent years. The Emirate of Dubai adopted the crypto asset regulation on 9 March 2022 in order to establish a strong digital economy. The main goal of Dubai Virtual Asset Regulation Law, which will come into effect throughout the emirate, including free zones and special development zones, with the exception of the DIFC financial free zone, is to make the emirate and the entire UAE as a worldwide location for the virtual asset industry. The Dubai Virtual Assets Regulatory Authority (VARA) will cooperate with all related entities to ensure maximum transparency and security for investors.

Currently, more than 230 blockchain-specific organisations are located in The Dubai Multi Commodities Center (DMCC). By stimulating the growth of the sector with the help of Dubai’s new virtual assets law, Crypto Oasis set 1,000 blockchain firms by the second quarter of 2022. Crypto Oasis was initiated in the UAE and it is the biggest ecosystem of blockchain-related organisations.

The new law will facilitate transactions for investors, who want to acquire property with cryptocurrency. Some master developers in Dubai such as Emaar Properties, DAMAC Properties, Meraas, Dubai Properties, Select Group and MAG Lifestyle Development offer this option as a form of payment.