DUBAI, 1st April, 2022 (WAM) — The Dubai property market has proven remarkably resilient during the pandemic, and over 84% of real estate professionals expect competition in the Dubai property market to continue. intensifies in the future, according to the 2022 EMEA Real Estate Report published by the global headquarters of Berkshire Hathaway HomeServices.
The report reflects the experiences of residential real estate professionals in seven key markets for Berkshire Hathaway HomeServices, namely Dubai, the United Kingdom, Germany, Italy, Spain, Portugal and Greece over the last 12 months.
More than two-thirds (68%) of respondents in Dubai said they had seen growth in the last twelve months and expect this positive trend to continue, with a remarkable 77% – the highest figure reported in EMEA countries – predicting that the market will continue to grow in the coming year. These figures, coupled with strong prospects for future growth, suggest that Dubai’s real estate sector will soon continue to show considerable vitality.
In the last quarter of 2021, the UAE real estate market saw record growth since records began. In November 2021, Dubai recorded the best sales month ever, with a total of 6,989 transactions worth AED 17.95 billion. In terms of transaction volumes, Dubai reported a total of 57,043 for 2021, representing a 73.6% increase from 2020 and a 51.6% increase from 2019.
Real estate professionals credit Dubai’s growth over the past year with supporting Expo 2020 Dubai, as they have observed an increase in the market value of real estate coupled with an increase in demand at both regional and international.
With the UAE being at the forefront of innovation globally and geographically located at the center of the world, Dubai is recognized and respected by investors in EMEA and around the world. Dubai property professionals estimate that around 60% of residential property investment has been generated from outside the region, with less than half (40%) of property demand originating locally. According to the results, a third (32%) comes from international investors within EMEA and just over a quarter (27%) from outside EMEA. Additionally, over 50% of Dubai-based respondents are most likely to say that the balance between international and domestic investment will change over the next three to five years.
“We have to recognize that the Dubai market has been totally transformed. In just a few years, we have seen a marked shift from a market that was almost entirely domestically dominated in the past, to a market that attracts increasing foreign and institutional capital.The country’s investments in world-class infrastructure, coupled with an exceptional lifestyle and amenities, the best hotels and restaurants in the world, have helped transform the city into a destination in which people want to live in. the world, including Europe, India and the UK, continues to choose to live in Dubai and additionally has more than 200 nationalities of expats which make up about 85% of the population of Dubai.” Dounia further commented.
In terms of the types of homes in demand, more than half (55%) of real estate professionals said the pandemic has generated increased demand for starter homes. Dubai is often seen as a luxury second home, but the results illustrate a shift towards buying primary and prime properties in the affluent hotspot. The pandemic has also shown that demand has increased for most property types, but most importantly there has been a 57% increase for detached houses and 58% for apartments and flats in Dubai. Additionally, proximity to amenities is particularly sought after in Dubai, with almost 70% of respondents highlighting the highest metric reported in EMEA.