Property sales in Dubai are increasing at an unprecedented pace. The Emirates fascinates with its beauty and comfort, assortment of recreational activities, student influencers, and high standard of living. We suggest the opportunity to evaluate the modern Dubai market and the dynamics of Dubai property prices in 2024.
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Development of the Real Estate Market in the UAE
The UAE is well-known for its comfort. The hot climate, developed economy, and convenient infrastructure attract tourists and migrants.
In the past few years, the UAE has been seeking to overcome its dependence on the oil business and is developing tourism, services, the financial sector, and the real estate market.
Between 2000 and the financial crisis of 2008, Dubai’s property market quadrupled. But after 2008, sales and costs fell sharply. Gradually, the local accommodation market recovered and acquired momentum again. From 2012 to 2015, property costs grew by approximately 20% annually.
Until 2020, the situation was developing for the better, but after the pandemic outbreak, property costs in Dubai collapsed again. Fewer tourists and expats from the transport and hotel business left, and everything became quiet. Gradually, the borders began to open, and the real estate market grew again.
A constant flow of tourists and investors in the real estate sector has been restored. The country’s economy has picked up again. In 2021, analysts recorded that accommodation costs in Dubai showed strong growth rates – a growth of 175% compared to the previous year. At the beginning of 2022, accommodation costs continued to move upward: the price of one square meter rose to 10,775 dirhams ($2,930).
Dubai Real Estate Market Today
In June 2023, all property companies registered a record increase in residential sales in Dubai. From May to June, sales increased 42%. In June, 29 transactions were completed with a full value of more than 30 million dirhams (more than $8 million). This is despite the fact that the average cost for flats practically did not increase in June. Flats have been and are being sold most actively in Dubai’s residential property market.
The Dubai residential market formed to recover so fast for several causes:
- Dubai has vigorously and quite actually fought the coronavirus pandemic.
- Economic indicators have enhanced.
- Oil costs have increased.
What Defines Real Estate Prices in Dubai?
Real estate specialists expect that in the next few years, developers in the UAE will not build as many properties as they did in past years. The number of offers on the market will inevitably decrease. This means that real estate prices will increase.
The cost of one sq. m. of real estate in Dubai is influenced by:
- Kind of property
- Landscaping of the local area
- Transport accessibility of housing
- Distance from the sea.
View from the windows. Buyers look at this almost immediately as soon as they enter a home to evaluate whether it is worth taking it or not. View flats with big, panoramic windows play an important role in the perception of housing as a whole. The picture outside the window seems to continue the home interior, particularly when discussing housing in the center of a metropolis.
Thus, a flat with a view of the beauty of a large city in the Emirates (let’s take Dubai as an example) costs 7,000,000 dirhams or more.
Valued Views in Dubai Real Estate
The landscapes outside the windows may be different, but the following are valued more than others:
- View of skyscrapers and other city beauties (villas, wonderful townhouses, and so on). Usually, this happens from windows in new buildings located in prestigious neighborhoods. You can see high-rise buildings, major highways, and shopping and entertainment complexes from here.
- The historical center of the metropolis. Residents living here can see areas with architectural buildings built in the 20th century from their windows.
- View of the barriers, sea. Such apartments are listed in a separate category and can often cost more than others precisely because of their excellent location and wonderful views from the windows.
- View of the main roads. The lights of the highway seem attractive and even romantic. This picture from the window in the dark is especially beautiful.
- Green areas, parks, squares, trees. A view of green areas can help to calm down if necessary, but in addition to the psychological impact, such areas provide the opportunity to admire the beauty of nature.
The real estate market in Dubai and the UAE is dynamic: there are both downturns and ups due to crises and the pandemic. The Emirates are quickly recovering from difficult periods and are taking on tourism and development with even greater zeal. Today, numerous pleasant proposals are on the market for purchasing flats and villas. Their number will decrease over time, but the need is unlikely.
Where to Buy Property
AX CAPITAL employees, as well as the company’s partners, help citizens of different countries find the necessary objects for living and doing business, negotiate with sellers, negotiate discounts, draw up purchase agreements – and carry out all significant stages of the purchase and sale transaction. Start searching for real estate today and see what the company has in its database. The search on the website is designed in such a way that investors can conveniently find housing, a commercial property, or a plot of land.
Conclusion: Dubai Real Estate
In summary, Dubai’s real estate market has rebounded impressively, overcoming challenges like the financial crisis and the recent pandemic. The UAE’s economic diversification efforts, effective pandemic management, and rising oil prices have fueled a resilient recovery, evident in record-breaking residential sales and a consistent uptrend in property prices.
Looking ahead, experts anticipate a decrease in property supply, potentially driving up real estate prices in the coming years. Factors such as property type, location, and scenic views play a pivotal role in determining costs. Despite market dynamics, Dubai and the UAE remain attractive for real estate investment, offering diverse opportunities.
For those navigating the Dubai Real Estate, assistance from professionals like AX CAPITAL ensures a smooth purchasing process. As the real estate landscape evolves, Dubai’s market continues to present appealing prospects, making it an opportune time for investors to explore the flourishing real estate sector.