It seems that everyone wants to become an owner of the property in the UAE as it turns out to be quite a profitable asset. There are plenty of residential complexes to choose from, like Royal Atlantis Resort and Residences, or One at Palm Jumeirah in the UAE. Do you want to buy property in Dubai? Ax Capital agency specialists are ready to assist you in choosing the right property. They will select for you the best offers that perfectly match your wishes.
Prices of real estate in Dubai
Consulting company Knight Frank has compiled a detailed report on premium real estate in Dubai. It turned out that over the past year, the average price for luxury real estate has increased by almost 60%, which is explained by the high interest from foreign investors.
- The artificial island of Palm Jumeirah recorded an increase in villa prices during the first quarter of 2022, which amounted to 11%. At the same time, over the past year, the overall increase exceeded the figure of 38%.
- Equally popular is the Emirates Hills area. Here, in the first quarter of 2022, the price increase was 6.5%, and over the past year – 20%.
It is these areas that have already won the status of exclusive enclaves in Dubai. And international investors, first of all, study proposals here. In the previous year, specialists recorded 93 sales of houses belonging to the ultra-premium class. This class includes homes worth more than USD 10 million. And in just the first three months of 2022, sales of homes in this class amounted to 32 transactions.
These statistics indicate a significant increase in the interest of international investors in ultra-premium real estate in the city. And this, in turn, has a positive impact on the property market and enhances the international prestige of the emirate.
Prices for property for sale in Dubai
Some experts predict that the emirate’s real estate market will begin a gradual decline in prices. The main factor is the growth of interest rates on mortgages. Today, the most active growth is shown only in the segment of super-premium housing.
What does this mean for the entire Dubai property market?
- On the one hand, the housing segment in the UAE is influenced by trends in the global economy.
- On the other hand, as practice and statistics show, the real estate market in the city always significantly outperforms the property markets in European countries and the United States.
This means that the real estate market is very resistant to interest rate risk. And there are three main reasons for this.
- First, initially the emirate’s housing market was not focused solely on mortgages. Accordingly, mortgage rates were higher than in European countries and the United States.
- Secondly, since the beginning of 2022, the total number of transactions using mortgages has decreased by 27%. Today, most buyers prefer to use cash or cryptocurrency for payments.
- Thirdly, prices in the real estate sector of Dubai are traditionally considered underestimated: especially when compared with other cities in the world. The only exception is housing belonging to the super-premium class. Thus, the risks in the emirate’s housing market are minimal, but at the same time, investors have the opportunity to buy investment properties at a reduced price.
Palm Jumeirah sells another super-luxury mansion
For many months now, the artificial island Palm Jumeirah has been a leader in the sale of luxury housing. Not so long ago, another premium mansion worth over USD 17 million found its new owner.
It is reported that the total area of this mansion is 798 square meters, and its architectural style is reminiscent of the best traditions of Los Angeles mansions. The property is located on the N Frond branch.
Specialists in charge of the transaction report that the buyer was a citizen of one of the European countries, who decided to move to Dubai. Among the distinguishing features of the housing itself is the presence of the “smart home” system. The house has five bedrooms and a private garden. From other options, the mansion differed in individual decoration.
This house received additional benefits due to the fact that the seller put it in excellent condition, according to experts. In general, such houses are always a rarity in the Dubai real estate market, since the number of such proposals is very limited. The combination of these factors made it possible to make a quick sale.
Protection of investors of long-term construction Marina 101
The purchase of housing in Dubai is a completely safe procedure, devoid of risks. This is once again confirmed by the story of the long-term construction of Marina 101, a project that was launched in 2005.
It is reported that RERA (Real Estate Regulatory Agency) has offered official payment protection for investors who have invested in this project. During the negotiations, the representative of the agency suggested that investors pay up to 90% of the total cost of the purchased property, which will significantly speed up the completion of construction. At the same time, RERA assumes obligations to reliably protect investors’ funds after the completion of the project.
One of the famous projects Marina 101 was announced back in 2005. After lengthy work, the project implementation process stopped at 97%: in 2019, construction was suspended as a result of the developer’s failure to fulfill its debt obligations. After that, investors began to work closely with the real estate regulatory agency, which made it possible to find common ground and revive construction.
Marwan Bin Galita, CEO of RERA, reports that even in the most emergency situation, investors’ funds will be reliably protected thanks to the project’s escrow agent. After the negotiations, a new construction schedule was presented, allowing to designate the deadlines for the completion of the project.
Real estate agency in Dubai
Do you want to buy property in Dubai? Contact the specialists of the Ax Capital agency. Their employees are well versed in the market, always aware of the most relevant offers. They will help you not only to choose the most profitable housing with non-he washers but also to fully accompany the transaction.