Report: UAE records unprecedented growth in residential real estate
According to data provided by ZāZEN Properties, Dubai has set a 12-year high within the 0.33 sector in terms of the volume and price of the sale of off-the-plan and secondary properties. In the first half of this year, Dubai’s off-plan market had a 133% surge, and in the third quarter of 2022, 25,456 revenue transactions of AED69.72 billion were recorded. As the Qatar World Cup 2022 approaches, it is believed that the event will have a significant impact on the UAE’s residential real estate market.
Burj Binghatti, the world’s highest residential tower, will be built in Dubai, according to real estate listings. Dubai is a popular tourist destination across the world, and World Cup fans will want to visit the city before, during, and after the event because of its closeness to Qatar. With visitors looking to visit and invest inside the city, the UAE is predicted to experience an increase in demand for lodging of up to 40%. According to the report, a significant portion of World Cup tourists may be High Net Worth Individuals (HNWI) looking for luxury homes. Mid-market customers are also projected to be looking for real estate investments in Dubai.
At some point during the World Cup, more than 1,000,000 travelers are expected to travel to Qatar, which could result in a significant increase in site visitors to nearby transit hubs like Dubai. This will benefit the residential real estate market in the UAE as hotel occupancy rates within the emirate are anticipated to be above 90% and Q4 performance should be comparable to that of the Expo 2020, according to Madhav Dhar, Co-Founder, and COO of ZāZEN Properties.
Many travelers who pass through Dubai may acquire real estate, either for their use or to raise money. Although asset costs have increased inside the UAE, real estate’s long-term appeal as an asset is straightforward given that average rental rentals now hover around 27%. Customers of all backgrounds will most likely focus on finding the one-bedroom, two-bedroom, and three-bedroom products that are most in demand. These customers may even compare their purchases to high-quality European products that place sustainability and community-based facilities at the forefront, the author continued.
In the third quarter, there were over 25,000 real estate transactions totaling about AED70 billion, representing an expansion of over 65 percent in both extent and price. In September, there were over 4,200 deals for almost AED15 billion in the secondary phase and over 4,400 transactions worth over AED10 billion in the off-plan phase, marking a monthly high. The real estate market in Dubai has maintained its pace from the previous year, and with the World Cup in Qatar about to begin, this trend is most likely to persist.
Source: Arabian Business
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.