Dubai property

Dubai

Main article: Dubai

2024: The world's longest horizontal skyscraper is built in Dubai. It cost $1 billion

At the end of January 2024, it became known that the world's longest horizontal skyscraper was built in Dubai. The Link structure, which connects the two towers of the One Za'abeel high-rise complex, is approximately 225 meters long. Read more here.

2023

Sales of homes worth $25 million and above in Dubai doubled

Sales of homes worth $25 million and above in Dubai have doubled. Wealthy buyers spent $2.27 billion to buy luxury homes in 2023.

The number of deals is increasing as some of the world's richest people move to Dubai.

Russians sell more apartments in Dubai than they buy

In the summer of 2023, the Russian boom in the Dubai real estate market seems to be over. According to brokers, a sharp drop in the Russian currency accelerated the decline in the market, which was already at the limit of opportunities.

Russians sell more properties in Dubai than buy, according to one broker

Apartment prices increased by 20% over the year

Dubai apartment prices have risen the most in a decade thanks to a housing boom. For the year ending August 2023, prices for apartments in Dubai rose by 20%, the best since November 2014. According to CBRE, price increases outstripped 17.3% price increases for single-family homes, known locally as villas.

The return on apartments in Dubai, where the currency is pegged to the US dollar and rental income is tax-free, is 7.34 per cent, according to CBRE. By comparison, the average return in London is 4.18%, and in central London, where the vast majority live in apartments, it is even lower - 3.6%. The average annual rental price for apartments in Dubai is 106,674 dirham ($29 thousand), and villas - 322,573 dirham.

Rapid growth in the cost of renting a home

The cost of renting housing in Dubai has recently increased significantly, which is why former tenants are forced to move to less prestigious housing or move to the outskirts of the city and to other parts, UAE writes Bloomberg in April 2023.

On average, the cost of renting a villa over the past year jumped by 26% and reached $80.4 thousand, renting an apartment went up by an average of 28% and amounted to almost $27.7 thousand, follows from the data of the consulting company CBRE Group. The founder of the company for the selection of senior managers Metin Mitchell told the agency that "the character of Dubai is changing."

"It's becoming an ultra-dynamic economy again, but it's also becoming more like Monaco, catering to the needs of the rich and wealthy," Mitchell said.

2022

Real estate sales in Dubai updated the record of 90 thousand transactions thanks to Russians

In 2022 Dubai , more than 97,300 real estate transactions were completed in, which is a record figure for the emirate - 60% more than in 2021. $72.1 billion was paid for real estate. The previous maximum date was 2009, when 81.8 thousand real estate purchase/sale transactions were registered. This was announced in January 2023 by the agency Bloomberg with reference to the company's data. CBRE Group

Apartment prices in November also set a record. At the end of November, the average price of a residential property exceeded $362,000, which is 18% higher.

The most active players in the real estate market in 2022 were Russians, the newspaper notes. It is emphasized that Russian citizens began to actively invest in real estate in Dubai after the start of the Russian military special operation in Ukraine. At the same time, according to an analytical study by the company, Russians focused on purchases in the luxury segment.

Dubai property sales update record

CBRE experts did not specify what exactly the share of Russians among those who decided to purchase Dubai real estate, but limited themselves to data on the number of purchases.

Bloomberg notes that amid record sales figures, real estate prices in Dubai have risen. The average cost of an annual rental of a villa in 2022 rose by 25%, to $76 thousand, the average cost of renting apartments increased by 27%, to $25.8 thousand.

On December 25, 2022, the Financial Times, citing sources, reported that the main competitors of Russians in the struggle for the right to purchase real estate in Dubai are citizens of European countries, citizens of India and Asian financiers. At the same time, the main incentives for Europeans to buy housing in the UAE are the desire for a warm climate and low taxes.

According to statistics from the elite real estate agency Skolkovo Realty, the demand for real estate in Dubai among residents Moscow in January-November 2022 jumped by 205% compared to the same period in 2021. Residents of the Russian capital rushed to buy housing in a popular resort against the background of general uncertainty within the country, analysts point out.^[1]

Russia climbed to 5th place in the number of real estate purchases in Dubai

The share of Russian real estate buyers in Dubai increased by 67% in the first quarter of 2022. In the ranking of the most active investors in the Dubai real estate market, Russia rose from 7th to 5th place, second only to the UK, India, Italy and Canada.

2021: Dubai property market soars 90% This is the record for 12 years

In 2021 Dubai , the real estate market soared by 90%, which was a record for 12 years. For the first time, market growth was not accompanied by a drop in prices. The growth was facilitated by a competent state policy on coronavirus restrictions, which allowed the country to quickly get out of the crisis. This is stated in a study by BusinesStat analysts (published in August 2022).

Dubai is among the fastest growing cities in the world, attracting international business and investment with its special economic zones, highly developed tourism industry, communications, trade and financial sector, the researchers said.

Dubai property market soars 90%

Since 2009, the pace of construction of real estate in Dubai began to outstrip demand, and by 2013 the market was completely overstocked. By 2016, real estate prices fell by 20-30%, but sales volumes continued to decline. From 2017 to 2018 the volume of real estate transactions fell from 23.7 thousand to 16.6 thousand.

In 2019, the UAE government announced a 10-year residence permit for investors, and also allowed 100% foreign ownership of companies. Earned a national committee to control construction. As a result, by 2020 the market began to recover. The number of real estate transactions rose to 18.8 thousand per year, although prices continued to fall. Against the background of low prices, investors from the CIS showed significant interest in the market. The share of CIS citizens in transactions in the real estate market of the Emirate of Dubai amounted to 30%.

In 2021, 55,651 real estate transactions totaling AED 135.4 billion ($36.86 billion) were concluded in Dubai. Dubai real estate attracts investors from all over the world thanks to government initiatives in the field of providing resident visas, the absence of a tax burden for businessmen, as well as a successful vaccination program against coronavirus infection COVID-19.^[2]

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