With the UAE being recognized as one of the first countries that fully recovered from the pandemic, life in Dubai has regained a sense of normalcy. Thanks to a successful vaccination drive, safety measures, Expo 2020, and the government’s new visa amendments, the UAE economy progressed significantly – ultimately impacting Dubai’s real estate market. In fact, Dubai’s property market grew at an incredible rate – with ready sales in H1 2021 reaching an all-time high since 2017. Now the question is: will this trend continue in the future? And what are the predictions for Dubai’s real estate market in the future? Let’s explore the factors influencing Dubai’s real estate predictions.
1) Expo 2020 Outlook
Expo 2020 is expected to have a prolonged positive impact on Dubai’s real estate market in the coming years. The huge amount of people flocking to attend the event and settling in nearby areas will definitely spark demand for real estate investments. Communities near the Expo site – such as Dubai South, Dubai Investment Park, Jumeirah Gulf Estates, and Town Square – have already witnessed an increase in value and rental rates. Also, thanks to UAE’s new business-friendly regulations, more entrepreneurs will be drawn to set up new businesses in Dubai – especially since the Expo site will turn into a business hub after the exhibition ends. Thus, given the following favorable conditions, communities near the expo site are becoming more popular as more of the population migrates there.
2) Dubai’s 2040 Urban Master Plan
The 2040 master plan was launched to make Dubai the most liveable city in the world. It mainly focuses on developing 5 urban centres across Dubai – with an emphasis on better green spaces and efficient resource allocation. In the hopes of making Dubai the most attractive destination for tourism and foreign direct investments, Dubai’s population is set to increase from 3.4 million to 5.8 million by 2040 thanks to the project. As a result, there will be rising demand for residential properties – which creates substantial opportunities for Dubai real estate investors. Analysts believe that Dubai will require up to 500,000 new properties to accommodate its expanding population.
3) Real Estate Technology
One can’t deny the pandemic’s role in accelerating the use of technology in various industries. Even in real estate, implementing advanced technology was pretty impressive and we have already seen it when people were able to view properties virtually with a, i.e. 360-degree view or simply a detailed video. Remote viewings were typically more prevalent with investors living abroad but are becoming more common now even for people living in the UAE. This trend will definitely continue as we incorporate blockchain also, which expedites purchasing of properties. What’s also interesting is the rise of real estate crowdfunding platforms that rely on cutting-edge technology and data-driven analytics to showcase only the best properties in Dubai for the fraction of their price. For example, MENA’s #1 real estate crowdfunding platform, smartcrowd.ae, enables you to immerse in a fully digital, hassle-free investment journey for as little as AED 500 only.
4) Commercial Real Estate
Similar to residential real estate, commercial properties have also witnessed an uptick in transactions. As more startups and businesses are emerging, the need for commercial spaces is also growing. Moreover, due to the favorable business conditions launched by the UAE government such as the 100% ownership structure and golden visas, more businessmen are drawn to settle in the region and purchase real estate in the future. Dubai is already welcoming a high influx of entrepreneurs who are opening additional branches for their businesses in the UAE.
Dubai will continue to experience this upward trend in real estate transactions for the next decade, at least. Even rent prices are expected to rise, given the current boost in economic activity and major events taking place in the city. Nevertheless, Dubai’s properties shall remain affordable, compared to other international markets. As referenced by the UBS Global Real Estate Bubble Index of 2021, Dubai is currently the only undervalued market – presenting a great opportunity for investors now more than ever!