A recent market survey found that expats accounted for 40% of all property purchases in Dubai last year, and that figure is expected to reach 50% by 2025. This is being driven by rising rental costs and the attractiveness and stability of the UAE’s economy, Al-Qabas reported.
According to a business magazine, Dubai is rapidly moving from being merely an attractive real estate investment destination to a preferred place for long-term settlement for families from all over the world. This is being driven by several government initiatives aimed at attracting talented people, as well as the prospect of a high return on investments based on expectations of continued price hikes in Dubai’s real estate market.
A recent survey conducted by global digital consultancy RedSeer showed that two-thirds of expats residing in Dubai are considering buying property, rather than renting, due to the rising cost of rent. The survey indicated that the average rental price for a two-bedroom apartment in Dubai has increased by 20% in 2023. This has made property ownership a more attractive option for expats, who are looking for a long-term financial investment.
In addition, a RedSeer study also determined that wealthy Russian expats still dominate Dubai’s high-end residential real estate market, preferring villas that account for nearly two-thirds of their investments. Abhishek Jha, senior legal advisor and managing partner at Foremen Fiefdom, said that besides the high rental costs, there are many other factors that contribute to the expected increase in the participation of local expatriates in the real estate market in Dubai and the UAE. These factors include the country’s strong economic growth, stability, prosperity, and favorable regulatory environment. This trend is expected to continue to escalate.
Moreover, Dubai is one of the fastest growing economies in the world and has a low price-to-income ratio, making it an ideal place to invest in real estate. The market has recovered well after the pandemic and is now back at its 2019 price level, but is still 20-25% below its 2014 peak.
Akshay Jayaprakkasan, associate partner at Redseer Strategy Consultants, told Arabian Business that Dubai is becoming a more attractive place to live for families. He said that the sharp rise in rental prices is driving residents to buy property, and that the city is also becoming a more attractive place to settle long-term due to the government’s initiatives to liberalize the economy and attract talented expat.
The Dubai Land Department (DLD) recorded the sale of four apartments worth more than AED 242 million (approximately $66 million). The most expensive apartment was sold for AED 65.7 million in the COMO Residences Tower project, developed by Nakheel on Palm Jumeirah. Two other apartments in the same project were also sold, for AED 59.3 million and AED 53.6 million, respectively. The fourth apartment was sold in the Bulgari Lighthouse project for AED 63.7 million. The department also recorded the sale of a land plot in Oud Metha for AED 350 million (approximately $95 million).
Read Today's News TODAY... on our Telegram Channel click here to join and receive all the latest updates t.me/thetimeskuwait
