What is the cause of today’s property boom in Dubai? While Dubai has been always attractive place to invest in real estates, two factors recently increased that appeal: 1/ successful handling of Covid-19 and 2/ influx of Russians due to the war in Ukraine.
While EU countries introduced lockdowns across Europe in 2020/21, the UAE adopted very different approach which ultimately paid dividends. Dubai remained open for visitors during COVID-19 passing negative PCR tests on arrival who stayed in Dubai longer than for a standard holiday reluctant to return home and being caught in lockdowns. Tasting no stress environment, high standard of healthcare and living in general, many visitors stayed to live in Dubai with their families, rented or bought properties which increased their prices.
The surge in Dubai’s property prices has been also influenced by an influx of Russians that arrived in 2022 after Russia started the war in Ukraine. It is estimated that this led to staggering approx. almost 50% increase in property prices. In 2022, we saw over 80% increase in residential sales transactions compared to 2021.
In 2023, the Russian wave slowly recedes and European investors have become the primary replacement in the Dubai real estate market. They occupy approx. 30% of the market followed by Indian investors with around 20% market share.
We expect Dubai’s property prices not to be decreased in the foreseeable future given many uncertainties in the world such as US elections next year, struggling UK post-Brexit and continuing war in Ukraine. Hence, investors are advised to monitor the evolving situation in the Dubai real estate market.
Planning to invest and buy an apartment or villa in Dubai? Not sure where to start and want to know more about what are good locations, prices and newest developments projects? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 515 2374) at any time, we will navigate you and help with your investment plans.
