Last Updated on February 24, 2024
The Arab property prices are gradually rising. At the end of the year, analysts begin to gradually take stock of the performance of the Arab housing sector. The official site https://www.axcapital.ae/ has prepared information on the current situation in the property market in Dubai and the reasons for the increase in the cost of flats for sale in Dubai Marina.
Current market situation
Amid the comprehensive recovery of the United Arab Emirates after the COVID -19 pandemic, by the end of October 2021, the value of villas and apartments either increased or stabilized. This is especially clearly illustrated by the report of the property advisory company ValuStart. The report displayed information on 21 residential districts and 13 cottage communities in Dubai. On average, the cost of housing in October increased by 12.6% at an annual rate. The rise in price was 1.8% for a month.
Villas have risen in price the most over the year in the districts as follows:
- Arabian Ranches;
- Jumeirah Islands;
- The Lakes;
- The Meadows/
According to analysts, the main reason for the rise in prices is the comprehensive recovery of the market.
Causes and prerequisites
After the recession amid Covid-19, the UAE‘s property sector has recovered significantly. In particular, this was due to monetary, tax and budgetary measures that helped to support the economy and set it on the path of transformation. Another equally important factor is an increase in demand from capital providers and ordinary buyers from abroad interested in buying a home. It was they who stimulated the sales of property in Dubai and Abu Dhabi.
Obvious signs of recovery proved themselves already at CityScape, where developers gave a demonstration of their plans to build new residential communities in Dubai.
Results
Over 8 months of 2021, 37,537 property purchase and sale transactions were recorded in Dubai totaling $24 billion.
According to the data of the analytical service Property Monitor, these indicators exceed the sales results for the entire last year by 23%.
Between September and October 2021, total home sales increased by 6.6%. As to off-plan projects, their sales increased by 15.8%.
Prices by districts
In some districts and residential communities of the Emirate, where villas and cottages are mainly sold, the cost of housing increased in October by 30% on an annualized basis. As for the apartment market, it is also recovering, but less actively.
Villas account for 13% of the property market in Dubai. The highest percentage of price increases was seen in the following communities:
- Arabian Ranches – 31%;
- Jumeirah Islands – 30,9%;
- The Lakes – 27,9%;
- The Meadows – 26,7%.
The cost of apartments increased mainly in the coastal areas of the Emirate:
- Palm Jumeirah – 14,6%;
- JRB – 12,1%.
On the contrary, there was a decrease in some places:
- Jumeirah Village (- 6,3%)
- Dubai Production City (- 2,6%);
- Dubai Sports City (- 2,8%).
Purchase of property in Dubai
Contact the specialists of Ax Capital to find a dream apartment. They will select the best variant of property for investment or residence, as well as advise on the sale and purchase.