Real estate value trends in Dubai, UAE

Last spring, the cost of renting and selling cottages in the Emirates began to increase rapidly. This fact is noted on the UAE website The National.
Demand for real estate in the Emirates rose strongly in April-May last year. Clients felt the need for sufficiently spacious cottages during the current recovery of the real estate market, the portal says.

According to the consulting firm Asteco, in 2021, the sale price of luxury homes in Dubai increased by 23% (annual rate), and the cost of rent increased by 10%. During this period, property prices in Abu Dhabi increased by 2%. And the cost of living space in Dubai soared by 6%, while in Abu Dhabi they did not change.

The cost of renting a villa in Dubai and Abu Dhabi is still increasing - in specific cases by almost a quarter in a given time, Asteco notes in the documents.

• The largest indicator of the cost of objects in Dubai was noted in the Jumeirah Park group in the UAE - by 52%;
• In addition, cottage prices have increased in a number of communities. The largest indexes were recorded in Arabian Ranches - 24%, Dubai Hills Estate - four percent less;
• A strong increase in the cost of villas in Dubai was noted in the three regions of West Yas - 24%, Al Reef Villas - three times less;

• Last spring, companies were able to sell more than 1,000 cottages and more than 6,000 apartments in new buildings on the real estate market. Approximately 2,000 cottages and apartments were sold in Abu Dhabi.

The Dubai Property Exchange, which has been softened by a persistent fall in fuel prices, is showing signs of a recovery. Clients need comfortable cottages with green areas, as many now work and study remotely.

The final income from the sale of villas in Dubai for 5 months amounted to approximately 17 billion dollars.

It is difficult to indicate certain figures, because the price of objects depends on the number of rooms, area, location and other parameters. The cost can be 250-300 thousand euros. In the elite segment, the price reaches 25 million euros.

The real estate exchange in the UAE is still one of the hottest markets in the entire universe. A loyal level of tax policy, growing megacities, developing infrastructure and a strong reputation - that's what attracts customers from all over the globe.

The main reason for the increase in value is the huge demand. According to analysts, the price of an elite class apartment this year has increased by more than 30%, the middle class - by 35%. In the budget type, the cost has increased by more than 15%.

One of the main reasons for the rise in prices was the huge demand for new buildings. If in 2021, approximately 60% of the main number of contracts fell on the secondary market, today customers tend to buy a villa in Dubai on the primary market.