The Dubai real estate market has transformed over the last decade. As the city of Dubai has shifted away from an oil-based economy, it has delved into the tourism and the future of real estate investment industries. Purchasing real estate has become one of the most common long-term investment opportunities in the emirate of Dubai.
In the last few months, the future real estate development has seen a dip in both sales of off plan properties and sales of ready properties - those involving a transfer of title deed - due to the coronavirus pandemic. Observed by multiple real estate brokerage firms, this trend is attributed to the lockdown that was imposed on Dubai during the earlier months of 2020. The conduction of business by real estate agents was brought to a halt during this time. However, since the emirate of Dubai has reopened its services and activities safely and consistently, through the provision of sanitation and the wearing of masks, the future of real estate market has picked up. Even though the coronavirus pandemic has slowed down the Dubai real estate company it has not put a stopper on its long term market growth.
The coronavirus pandemic has also affected the Dubai real estate market in a unique way. The analysis of trends by real estate agents is showing that buyers and tenants are on the hunt for properties that have outdoor spaces like gardens and swimming pools along with spacious, and uncluttered living areas. This inclination is due to the lockdown movement restrictions that were placed on the residents of Dubai. With residents having to stay home, the need for outdoor and spacious accommodations like villas and townhouses has been observed on the real estate brokers in Dubai. This requirement is not only limited to larger detached properties, but it is also seen as a requirement for apartments and penthouses through the provision of outdoor spaces like balconies and terraces.
The industry has seen prices decline in the homebuyers' market due to the postponement of the much-awaited Expo 2020. Buyers stand to benefit from another year of discounts on properties in Dubai before the 2021 Expo commences. It is predicted that after the Expo, the supply of housing will decrease in the city, driving up the home values.
Since 2019, new trends in areas of long term investment in real estate have been noticed. These include:
1. Student Accommodation:
The emirate of Dubai hosts over 62 educational institutions that are internationally accredited from a variety of boards. The presence of these prestigious institutions attracts students from all around the globe. The increase in the number of students in Dubai has presented the opportunity to invest in real estate for student accommodation.
2. Staff Accommodation:
Dubai is a city with an expanding market, and hence, acts as a magnet for business professionals looking to grow their career prospects and play a part in the impressive economy of the country. A majority of these professionals move from different countries and require accommodation. Thus, staff accommodation refers to the housing that is offered to the employees of a firm. This kind of real estate investment opportunity involves leasing residential housing units for the staff of a company.
3. Senior Living
In recent years, Dubai has seen an increased number of residents looking to settle in the UAE. This observation is seen due to the attractive investment opportunities that lie in the emirate of Dubai. Residents who invest in property over 2 million dirhams or have savings of over 1 million dirhams are entitled to a 5-year renewable retirement visa.
The Dubai real estate market is a dynamic and active industry. As one of the leading forms of long term investment in the city, it plays an integral part in the economy of the emirate. The real estate industry adapts and changes with the latest events in the country but always bounces back to its prominent state in the market. This is because Dubai is one of the best cities on the globe; people from around the world strive to make it to Dubai and work hard to stay in it.