There is no doubt that Dubai is one of the most sought after residential destinations in the world. The highly advanced city offers a high standard of living to its residents and that is why the housing market here reached its peak in 2013, opening its doors to more real estate developers in Dubai.
However, with some of the major tourist destinations in the Middle East, like Cairo, coming into the limelight in recent years, a huge setback was seen in the growth of the housing industry in the city. The impact of the Brexit was also felt by the property market here, with a drop of 8% in the traffic from the UK.
The first quarter of 2016, however, saw Dubai's real estate market getting back on its feet. The city's safe haven status and world-class hospitality led to 1% quarter-on-quarter growth in the overall sales of real estate here, according to research by Core Savills.
The second quarter saw 5% growth from the first quarter and the numbers are likely to pick from here over the next two quarters of the year. This growth has also been supported by the new laws introduced by the Real Estate Regulatory Agency to control the off-plan sales. The new brand strategy to improve the city's image is also helping the cause.
Growing Investments and the Future
In the first eight months of 2016, real estate transactions of more than US$43 billion (AED158 billion) had been made in Dubai, according to the Dubai Land Department's (DLD) Transaction Report. In addition to this, the Real Estate Research and Studies Department also declared 38,000 sales, mortgages and other investments.
In the months of June, July and August, 2016, the market picked up really well and saw transactions of a combined value of AED 60.5 billion. Property sales contributed to 46% of the total amount, with more than 28,077 deals done during these months, accounting for about AED71 billion. Land sales accounted for AED58.5 billion in the city.
The introduction of new real estate developers in Dubai's market, such as Shapoorji Pallonji Real Estate, which offer luxurious accommodation with environmental friendly amenities, will definitely give a boost to the market in the coming days.
If you are planning to invest in the real estate market in the near future, then Dubai should definitely be on the top of your list of preferred residential destinations.