Property in: Dubai

Dubai property market sees rising ROI ratings

3 minutes
The recent market data shows rising Return on Investment (ROI) appeal for the real estate market in Dubai over the past 6 months.
Following a strong recovery from the pandemic, the Dubai property market saw rising ROI ratings over the last 6 months. A growing number of customers, buyers, investors, and increasing business activity are one of the main drivers of the rising investment appeal of the region.

What changed for the investment appeal in Dubai?

Off-plan projects in Dubai see the most significant rises in ROI ranking. Currently, this property type sees record-high numbers of payback growth in 8 years.
Moreover, Dubai suburbs show higher ROI levels than sought after areas like Dubai Marina and Downtown Dubai. We see growing investment appeal in several suburbs, including Jumeirah Village Circle and Al Barsha.

Off-plan properties in Dubai

Even though property prices for off-plan projects in Dubai are rising, in line with the wider real estate market in Dubai, they still attract a lot of buyers and investors. In Dubai, 1 sqm (square meter) costs around $5,500, while similar prices in Paris or Sydney reach more than $11,000.

In Q4 2021, the total volume of off-plan apartments sales reached $3.1bn, up from $2.6bn in Q3 2021. The total number of deals also spiked by almost 1,000 sales, from 4,305 to 5,303.

Main drivers of rising property appeal in Dubai

The World Expo 2020 started in Dubai on October 1 and is coming to an end. The impact of Expo 2020 is hard to emphasize enough. For example, we have seen almost 24,000 property deals, both secondary and new real estate, in Dubai since the start of Expo 2020. The total worth of the deals reaches $17.2bn or AED 63.1bn.

Key market trends

The recent Dubai real estate market indicators show that current prices are just 20 points short of the base levels seen in 2014. Just between January and February this year, villas increased in price by 2.1%, while apartments became 0.5% more expensive.
The number of buyers and investors looking for both short-term and long-term rental offers in Dubai likewise spiked in February 2022. In turn, rental values jumped by 4%, which is also the record-high growth level in 8 years.
The real estate market continues to attract international investment too. Real estate agents in the UK report a 20% increase in searches for buying properties in Dubai in Q4 2021 and Q1 2022. And the focus of buyers and investors seems to be shifting toward long-term investment.
In addition, business activity in Dubai saw significant growth as well. New businesses open, and many professionals, specialists, and high-skill workers come to the city. And it is supported by other market data. According to the World Bank in 2021, the UAE ranked 16 out of 190 other countries for the ease of doing business and its security.
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