I hope you have had a great week. This week, we have been comparing the different payment plans offered with our various developments and discussing the importance of a payment plan in building the best possible product for an investor.
We would love to hear your thoughts on payment plans, and how much of a part you personally feel they play in encouraging investors to take that step onto the ladder. Reply to this post and let us know today.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Property Headlines This Week
- Dubai Real Estate Market Continues its Upward Momentum – Historically, the UAE has experienced a high rate of volatility within the property market, with its infamous 2007 crash resulting in incredibly low pricing, even in the prime sector. Now there has been a swift upward momentum in the market following the emirate’s astounding v-shaped recovery during the height of the pandemic when other markets around the world struggled to stay afloat. Progressive government handling, excellent visa options and a constant drive to produce exceptional real estate options for both domestic and overseas investors have resulted in a continually strengthening market. Q2 2022 saw residential property prices rise by 4.04% on top of the 7.54% year-on-year growth of Q1, marking the fifth quarter in a row of yearly price increases. Rental prices are also anticipated to grow in the next year as a result of increased interest from abroad, particularly in the prime rental sector where the quality of life and value for money is highly competitive.
- Palm Jumeirah Top Pick for Villa Purchases as Prime Market Grows – According to market data, the Dubai real estate market has entered a period of significant growth, particularly with prime luxury residences. Zoom Property Insights has recorded an increase of up to 8% in the average price of affordable Dubai properties in H1 2022, with the average high-end property price growing by up to 19% within the same time frame. It is anticipated that H2 2022 will continue to show strong growth and that this will end as a record-breaking year for the Dubai real estate sector. While investors with a moderate budget have favoured areas such as Dubailand, Business Bay and JVC, those of high net worth looking for hyper-luxury villas have invested in prime communities such as Downtown Dubai, Arabian Ranches and Dubai Marina, with Palm Jumeirah still holding top place for prime villa sales. Although the momentum of the luxury sector is excellent, growth seen in affordable homes is the clearest indicator of a healthy market.
Continuing the Trend: Dubai Rents Rise Again in Q3 2022 – The Head of Research and Advisory at Core Real Estate Consultancy has remarked on the sustained growth of the Dubai rental market seen over the past year as a result of heightened demand and population increase, in line with the government’s overarching plans of expansion. In Q3 2022, the rental market saw a particular surge as the cost of renting an apartment rose by 26% and the cost of renting a villa increased by 28% year-on-year. These figures show rent prices to have risen faster than sales values during that time, with villa sales prices increasing by 16% and apartment prices rising by 8% – both excellent percentages in their own right. It is likely that the upward momentum will continue in Q4 2022 as interest continues to mount from the Russian market. Dubai’s short-term rental sector should also experience a strong uptick in the final quarter of the year as FIFA World Cup visitors flock into the city, perfectly positioned to travel to where the games are being held in Qatar.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.