Princeton,NJ/ 360prwire/ December 16/
According to the CBRE Group, an international real estate advisory company, the increase in property prices has been noted in Dubai. This refers to residential real property: now investments in villas in UAE to a foreigner will cost 4.4% more. Experts point out that this is the highest figure over the last 6 years. CBRE Group also notes that there is a counterintuitive decrease in property rental prices with such an increase in real property prices, the average rental price per the year has decreased by 2.7%.
Changes in the Dubai property market
The unstable economic situation in March 2020 affected the decrease in demand for real property, but the situation has changed dramatically a year later. According to the news agency, positive changes have taken place in the real property market in Dubai. This is especially true of elite residential property: sales of such apartments have reached their highest point, which has entailed the increase in prices. It’s strange, but the trend of price growth remained unchanged even in the summer, although it is usually at this time that transactions are carried out with the best discount.
Housing market trends
CBRE reports that villas have become very popular today.
After the pandemic and quarantine restrictions, people are moving from apartments to private houses. And this is despite the increased prices for this type of real property. As a comparison, apartment prices have risen by 2.5% over the year, while the cost of villas has increased by an average of 18%. CBRE also informs that current price increase has not reached their highest level in history: the highest increase in property prices was recorded in 2014, when prices for villas rose by 30% and apartments by 20%.
During the pandemic, most foreigners left the territory of the UAE, but the government authorities of the emirates took measures to combat the economic situation in the country. As a result, foreign investors began to return to Dubai.
Rental and commercial property prices
Interesting case: when real property prices grow, the cost of rent drops rapidly. However, here the situation is double-natured: rents for apartments decreased by 5.2 %, but the cost of renting villas increased by 15.5 % and reached its historical maximum.
As to commercial real property, advisory company CBRE Group reports that the current demand for office rental has grown by 77.1% compared to a time when there was no quarantine or restrictions. In contrast, rents have decreased by about 5%.
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