Whether you are looking to invest in real estate or buy a home, Dubai’s housing market is a hot topic. According to UAE news, growing demand for large homes with outdoor amenities is driving up the local market. In addition, new projects are being launched in the UAE, which has the potential to make the real estate sector stronger.
UAE residential real estate market is expected to experience a CAGR of more than 8 per cent during the forecast period. According to a JLL report, the market has the potential to reach 40,000 residential completions in 2020. Nevertheless, UAE real estate market may experience a slowdown in the coming years. This is due to the oil price slump and oversupply concerns.
However, economic support measures have helped improve the market sentiments and make it more attractive for buyers. In addition, UAE has been working on increasing transparency in the real estate sector. The government has mandated financial reporting requirements for real estate transactions.
UAE land department has registered over 43,000 real estate transactions in the first half of 2022. This substantially improved from the 41,000 transactions registered in the second quarter of 2022. In the first half of 2022, 5,100 apartments were commissioned, and over 4,500 housing units were handed over.
In the third quarter of the year, sales in the Dubai real estate market rose by 18% over the second quarter. Moreover, the average rental rates in the UAE rose by 25 percent year-on-year. In the years second half, the average rental rates in Abu Dhabi climbed by 2 percent. In addition, Abu Dhabi’s rent cap was reinstated in December. However, there is no clear indication of whether the rent freeze will extend to existing contracts.
According to a Reuter’s poll, Dubai real estate market may see a slowdown in the coming years. However, this may only happen for a while, as some analysts do not see signs of a housing bubble in Dubai. The government has also introduced measures to help investors in the real estate sector. It will allow foreign investors to purchase property in designated investment zones.
UAE land department has announced a memorandum of understanding with the Chamber of Commerce and Industry to develop real estate rental market transparency. The Department will also ensure a healthy investment environment.