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    Real Estate News & Trends from Dubai

    On October 1, 2021, the long-awaited Expo 2020 will finally start in Dubai.

    We have compiled 10 exciting facts about the Expo.

    We hope you enjoy reading them!

    The recovery of the real estate market in Dubai mentioned in the first quarterly real estate report is confirmed and becomes concrete.

    Since November 2020, property prices have risen by an average of around 2.1 percent per month. Demand remains robust and the trend towards houses and villas is continuing. This segment has also seen the strongest price growth. This is also reflected in the mortgages concluded. Mortgages for villas and houses are increasing, while those for apartments are decreasing at the same time. In addition, completed real estate properties (secondary market) continue to be preferred and, at over 62 percent, account for the majority of all real estate transactions.

    After the project was sold out for a long time, the next expansion step La Sirene will be announced in the next few days.

    The Port de La Mer project is located on the coast of the Jumeirah 1 district between Downtown Dubai and the international airport.

    After a challenging 2020, the real estate sector in Dubai got off to a positive start in the first quarter of 2021. Impressive growth in demand has been recorded and prices and transaction volumes have also increased. According to Dubai Land Department data, over 6,300 residential property transactions were registered in the first quarter, representing a total value of AED 8.9 billion. The purchase of existing properties accounted for almost 64% of all transactions. This reflects the local situation. In other words, the market has been mainly driven by the local living and working population over the past few months.

    In addition, in some of the more popular residential areas, an increase in prices of between 5% and 8% was observed. This trend shows the confidence of investors in Dubai's real estate market. Over 60% of all investors entering the market in January as well as February 2021 were also new investors, according to the Dubai Land Department, further confirming the attractiveness of the local real estate market.

    According to the Bayut & Dubizzle report, the area ofJumeirah Village Circleretains its position as the most sought after area for affordable apartments and villas in Dubai. Also the areaDubai Marinais attracting the interest of many buyers and investors thanks to its high-end properties and proximity to several tourist attractions. Established residential areas such as.Palm Jumeirah,Arabian Ranches,Jumeirah Lake Towers orBusiness Bayhave been able to maintain their position and continue to be sought-after areas.

    In terms of demand for luxury villas, the area ofArabian Ranchesis one of the winners. There is still increasing demand for ready-to-move-in villas in the secondary market, which is one of the reasons for the popularity of Arabian Ranches and which is already reflected in rental income.

    The off-plan market in Dubai remains robust. The driver here is not a massive increase in interest for properties, but a slowdown on the supply side. Many of the announced development projects are sold out or only a few units are still available, mostly not the best of course. The market here is waiting for new announcements. In particular, smaller units in the luxury sector at theEmaar Beachfrontor atDubai Marinaare sought after.

    Our conclusion

    Although the figures for the first quarter are encouragingly up on last year, it is important not to lose sight of the bigger picture. After all, the current numbers are compared to a weak base in 2020.

    What we are definitely seeing is that price erosion in the market has stopped. Purchase prices in the secondary market have risen and now also justify the partly high off-plan prices of the last two years.

    The market development of the last months is in line with our personal experience. We have seen a pleasing increase in enquiries and a keen interest in property investment in Dubai. We are positive that this trend will continue in 2021 and may even be boosted by the Expo activities.

    On March 13, 2021, the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, personally announced the launch of the "Dubai 2040 Urban Master Plan". This plan shows how Dubai wants to develop over the next 20 years.

    In doing so, it becomes clear that Dubai also wants to commit to sustainable urban development and thus grow into the best city in the world.

    The "Dubai 2040 Urban Master Plan" is thus in line with the vision of the United Arab Emirates for the next 50 years. The focus here is strongly on promoting the quality of life.

    The ambitious plan has the following main objectives:

    • Increase public beaches by 400%.
    • 60% of the area in Dubai is to become nature reserves
    • Urban areas and infrastructure are to be constantly developed further
    • (By 2040, more than half of the population should have access to public transport within a radius of 800 metres).

    This is expected to further boost the growth of the economic sector, create more jobs and attract greater foreign investment at the same time. These exciting plans are also expected to grow the population from the current 3.3 million to nearly six million by 2040.

    The new master plan is the seventh plan developed for the Emirate of Dubai since 1960. Since 1960, the population has grown from 40,000 to an impressive 3.3 million. Dubai, an ambitious city with a clear vision and a development journey that is far from over, even after more than 60 years...

    The last few months of 2020 have been record-breaking in the Dubai property market. As a result of the Corona pandemic, more and more families are looking to own their own home, particularly a detached house, which explains the impressive increase in property transactions of over 160 percent year-on-year.

    Events such as the announcement of a retirement visa, as well as the normalisation of relations with Israel, further boosts investor confidence in Dubai. This is already reflected in market prices.

    The real estate market in Dubai has largely stabilized in the last three months - in the more attractive residential areas there has even been an increase in prices. Most notably in the villa market, a constant monthly price increase has been reported over the last six months. The trend towards buying a house instead of an apartment is therefore continuing.

    Only in the off-plan market no increase in real estate transactions could be observed. The reasons for this are that, on the one hand, fewer new construction projects have been started and, on the other hand, 'ready-to-move-in' properties are simply preferred at the moment. Due to the limited supply of new construction projects, a demand overhang is slowly beginning to make itself felt. We have experienced this ourselves - apartments disappeared 'overnight' from the availability lists or were reserved.

    More than five million people have already been vaccinated against the Corona virus in the UAE/Dubai. This makes the UAE second in the world in vaccination rate per million population. Everyday life is returning and many expats are working again in their familiar environments, be it in the financial district or in one of the many free trade zones. As a consequence of the lockdown, there is clearly more emphasis on home, or rather living. In addition, we are seeing an increasing desire for a 'second-home'. Demand is coming mainly from Europe and Russia.

    We therefore venture a continued positive outlook with regard to real estate demand in Dubai. Only the situational flight regulations and quarantine lists are slowing down the pace at best, but not the general demand - on the contrary, the quarantine lists and the European lockdown bans are having a positive effect on Dubai, as it is one of the very few holiday destinations that can be visited and will probably remain so for a few more months.

    Attractive properties (location / price) are currently finding buyers quickly. In terms of price, Dubai can be considered 'fair' and accordingly the prices per square metre are significantly lower than European prices. Conclusion for the real estate investor: There are still attractive properties at fair prices for short-termed buyers.

    We have set ourselves ambitious goals for the coming year. Despite the difficult initial situation, we have also been able to record some positive events in recent months. The normalisation of relations with Israel and the opening up of Dubai, which has been completed to the greatest possible extent, show that we are starting the new year with a lot of verve and energy.
    On the streets of Dubai you still meet people with masks. The Corona virus is also a concern in Dubai and strict hygiene regulations continue to apply. As already mentioned in the half-year report, the real estate market is also affected by this pandemic. After this shaky start to the next six months, the real estate market in Dubai recovered strongly. The third quarter was characterized by many promising events.
    As of now, persons over 55 years of age can apply for a residence visa for a period of 5 years. In doing so, applicants must meet certain criteria. They must be over 55 years old and meet one of the following three criteria.
    The first half of 2020 was pretty shaken up by the corona virus. Logically, this has also hit the real estate market in Dubai. However, one after the other...

    After a 3-month entry ban for residence visa holders and tourists, Dubai has been open to all since July 7.

    On 23 June 2020, the first expats with valid residence visas were finally able to re-enter the country. Among them was Marc Schwitter, who had been stranded in Switzerland since mid-March.

    Due to the global COVID-19 pandemic, the international mega-event has been postponed until next year. The postponement will allow all participants from around the world to safely cope with the impact of COVID-19.

    The Expo will now take place from 1 October 2021 to 31 March 2022. The name 'Expo 2020' will continue to be used.