The UAE residential property market has recovered as people move to larger houses with outdoor facilities amid a rise in remote working and online learning.
The real estate market in UAE slowed due to a three-year oil price fall that started in 2014 over oversupply worries and the ensuing pandemic. The terminology employed in the market might be unclear to new property investors, further complicating matters.
Dubai real estate interesting?
The past year has seen an uptick in Dubai property values, notably in upscale districts, because to the UAE's overall economic rebound from the coronavirus-caused recession.
Now there has been a lot of change in the real estate market in UAE with the cost increase a lot with several other factors.
The Cost Increase
The COVID-19 epidemic caused the residential real estate market to collapse as people were compelled to stay at home, and the government imposed lockdowns. Investor and end-user demand are causing prices to rise throughout the UAE. According to the research, the capital projects 2,000 additional units, largely in master-planned communities, to be finished by year's end.
In light of rising yields, off-plan sales are high, and secondary market sales are also strengthening. According to the quarterly report, around 6,600 residential units were delivered in Dubai in the third quarter, bringing the total stock to 672,000 units. The third quarter saw the delivery of almost 1,900 units in Abu Dhabi, bringing the overall number of housing units in the Emirate to about 278,000.
Growth for UAE Real Estate Market
A survey of real estate analysts predicted that 3.0% price hike was seen in Dubai houses in 2021 and 2.5% in 2022. The UAE's hotel industry saw a noticeable increase in occupancy over the past five months thanks to an influx of tourists from a variety of source markets. Dubai and Abu Dhabi saw an increase in occupancy rates over the same time last year, with occupancy rates of 75% and 71%, respectively.
In the residential market, over 6,500 new units were added to Dubai's inventory in Q2 2022, whereas only about 1,300 new units were added to Abu Dhabi. Prime residential real estate is still in high demand, particularly in waterfront complexes. Leading real estate players who are developing new projects further support Dubai's current favorable environment for real estate investment. In Dubai, off-plan property sales experienced a significant rise in 2021.
Off-plan properties sold 2,599 units for AED 4.95 billion (about USD 1.3 billion) in August 2021. Since December 2013, this sale value for off-the-plan real estate in Dubai has been the highest on record, reaching an eight-year high.
The Workplace
Office rentals in Dubai's Central Business District (CBD) increased by 24% year over year in the third quarter due to the city's persistent dearth of high-quality stock and the absence of any new office completions. The most centrally located office space in the city is currently at or near capacity, with office vacancy rates at about 13%, down about 8% from a year earlier. By year's end, the emirate plans to add some 53,000 square meters of office space that will be available for transfer.
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