Dubai is one of the wealthiest cities in the world. Statistics show it is Dubai that is the leader in the influx of millionaires who wish to purchase real estate for their residence, business, and investment.
Tendencies in Dubai Real Estate Market in 2022
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Wealthy People Prefer to Buy Property in Dubai
The influx of millionaires into the UAE has also boosted total private wealth, totaling USD 13 billion in less than one year. Statistics also show that the total wealth of residents who own businesses, real estate, and shares is USD 530 billion.
Several factors explain the attractiveness of Dubai to wealthy people at once.
- First, safety and a high level of medical care.
- Second, these are measures that are attractive for businesses during the pandemic.
- Third, excellent tax incentives.
Real Estate Maintenance Fee Reduction
The Dubai Real Estate Regulatory Authority, together with private developers, will take measures to reduce the level of growth in service fees for real estate. It is assumed that property owners will reduce their costs by about 10-15%.
We knew the problem of service payments back in 2019. RERA and the DLD have urged many developers to lower their current property maintenance fees. Residents of some properties noted a significant increase in this fee.
In 2021, a very significant event took place in the property market. Now the list of RERA competencies includes control over the collection of service payments. The problem of non-payment of contributions by owners was also partially solved.
It is expected that reducing the cost of property maintenance will be another solution to attract new buyers. This factor is especially important for people who choose real estate in the middle price segment. The reduction in maintenance fees will also increase the profits of property owners who rent it out.
Off-Plan Property By The Sea
Over the past year, off-plan housing, near the sea, has become especially popular among buyers. Demand has increased for all categories of real estate – villas, townhouses, apartments. Statistics show that over the past year the number of transactions has increased by 94%. Experts believe that the reason for such rapid growth is the lifting of restrictions after the COVID-19 pandemic.
Every quarter, off-plan sales were up 56%. Slightly over 50% of the total number fell on such popular communities as Sobha Hartland, Jumeirah Village, Meydan One, Business Bay, and Dubai Harbor.
The Dubai Real Estate Portal reports that, in 2021, the largest off-plan deal to date is a villa that is part of the XXII Carat community. This community is on the artificial island of Palm Jumeirah, and the cost of the object itself was 28.59 million dollars or 105 million dirhams.
Real Estate in Dubai
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