Dubai Weekly Property News Round Up – 23.04.23

Hello,

I hope you have had a lovely week and would like to wish all celebrating a joyous Eid Mubarak as you spend time with family and friends.

At this time in the year, we would like to take a moment to appreciate the incredible level of support we have had from our clients over the years and our hardworking team who are all integral to our ability to continue to serve you with integrity, diligence and commitment.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.

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Property Headlines This Week

• Skyrocketing Real Estate Transactions Hit Dh157 Billion in Q1 – Dubai’s real estate sector continues to grow, with a total transaction value of Dh157 billion recorded in Q1 2023 – an 80% increase from the same period in 2022. The Dubai Economic Agenda D33 aims to increase private sector investments and maintain Dubai’s position as a global city. The Dubai Land Department has taken measures to support sustainable growth, resulting in real estate sales worth Dh89 billion in Q1 2023, a 62% increase from the same period in 2022. There were also 13,338 new investors entering the market in Q1 2023; a 12% increase from the previous year, with non-resident investors accounting for 45% of total acquisitions, a 25% increase from 2022.
• Experts Cite ‘Pressing Need’ for More Homes to Ease Undersupply – Dubai’s population has grown by 69,000 to over 3.5 million in April 2022. According to experts, the city’s rising rental prices have caused residents to stay put, creating a shortage of vacant properties. Developers suggest that house hunters need to widen their search and look at less popular areas such as Sports City and International City, and the outskirts of the city on the Umm Sequim and Al Qudra roads, where new areas are developing. While these areas may require a longer commute, they offer more options for those looking to move. The property market in Dubai remains active, ranking fourth in the world for luxury residential markets.
• Experts Say that Cash Investors Will Help Keep the Market Strong – Cash buyers and Chinese investors are expected to drive demand in the Dubai property market, according to a report from Morgan Stanley. With the majority of Dubai property sales conducted with cash and interest rates having little effect on prices, the report forecasts continued price rises this year, supported by investors seeking high returns and the resumption of travel from China. The city’s successful pandemic management and liberal visa policies have also attracted more foreign buyers, including wealthy investors from Russia, crypto millionaires, and Indians seeking holiday homes.