UAE Residential Real Estate Market Analysis.
The UAE residential real estate market is poised to register a CAGR of more than 8% during the forecast period, 2022-2027.
The residential real estate market came to a halt as a result of the COVID-19 pandemic, as the government implemented lockdowns and citizens were forced to stay at home. Nonetheless, UAE residential property prices are set to continue rising in 2022, driven by supportive economic reforms and an accelerated vaccination program that has helped to hasten a rebound from the coronavirus-induced slowdown, according to experts.
The UAE residential property market, which softened due to a three-year oil price slump that began in 2014 over oversupply concerns and the ensuing pandemic, has turned a page and is recovering as people move to larger homes with outdoor amenities amid a surge in remote working and online learning. In addition, economic support measures and government initiatives, such as residency permits for those who have retired and remote workers, in addition to the expansion of the 10-year golden visa program, have also helped to improve market sentiment.
Following the pandemic, there was an immediate decrease in demand for retail office spaces, as well as residential real estate. However, moving into the following years, there has been a strong reversal of this trend. In recent years, the UAE government has opened up the real estate market for expats to a larger extent, allowing for more investments. The concept of both a five-year and a ten-year residency visa has been introduced, which can be acquired through real estate investments.
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UAE Residential Real Estate Market Trends.
This section covers the major market trends shaping the UAE Residential Real Estate Market according to our research experts:
New Project Launches in Dubai are Expected to Boost the Market.
The realty sector in Dubai is back in the limelight, beating the COVID-19-induced uncertainties, and it is showing strong signs of sustained growth if one is to go by the statistics released by the Dubai Land Department (DLD). A survey involving property analysts forecasted Dubai house prices to rise by 3.0% in 2021 and 2.5% in 2022 compared to 1.1% and 2.8% three months ago.
The survey predicts the Dubai residential property market to be on a steady course for a couple of years with a modest rise in prices. This indicates affordability on the one hand and sustainable growth on the other. Dubai now has a favorable climate for investment in properties, which gets further endorsed by leading real estate players who are planning new projects. Danube Group, for instance, is one among them. Source: https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-uae
