Last year in the UAE there was an increase in the proportion of buyers of real estate, who buy properties for themselves and consider them as a long-term investment. This is due to the fact that the number of investors seeking to make quick money on speculative schemes has decreased. Demand for ready-to-buy apartments and villas in Dubai also continues to grow, as evidenced by a four-fold increase in the volume of transactions in the secondary market during the first half of 2022 compared to the same period last year. It is worth noting that, according to local laws, housing commissioned is considered secondary. At the end of the year this segment accounted for more than half of the total volume of housing transactions.
However, the price dynamics in Dubai for the year is 16-19%, which is a significant increase. In addition, the increase in demand for real estate under construction has led to an increase in the price of credit, which discourages investors and end users with more limited capital. At the same time, the cost of apartments and villas in Abu Dhabi rose by an average of 4% over the year. The greatest dynamic was observed on Saadiyat Island and Al Raha Beach, where some properties rose in price by 8-10% in 2022. Analysts note that premium villas are still in high demand, and prices for some of them have increased by almost 25% since 2020.
Investing in UAE real estate can be a profitable long-term solution, especially for those looking for stability and reliability of investments. However, it is necessary to consider the risks associated with changes in the economic and political situation in the region, as well as with fluctuations in real estate prices. Therefore, before making a decision to invest, it is necessary to conduct a thorough analysis of the market and consult with professionals in the field.
