Dubai Weekly Property News Round Up – 16.10.22

Dubai Weekly Property News Round Up – 16.10.22

Hello,

I hope you have had a lovely week. This week, we are very excited to announce the launch of the latest project by world-class master developer Azizi – Beach Oasis.

This sleek low-rise development comes with its own lagoon-style pool for residents to enjoy, a wonderful range of amenities and pristine apartments starting from just AED 457,000 (£110,411).

Reply to this post for more information.

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.

Episode 46: From Real Estate Boom to Bust and Then Back Again – The latest episode of the Pure Property Podcast is out now. You can listen to it on Apple Podcasts and all other major platforms.

Remember, you can also listen to this week’s newsletter on the podcast as well.

We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.

Property Headlines This Week

  • Prime Dubai Real Estate Jumps Nearly 90% in Past Year – According to research from property consulting experts Knight Frank, the value of Dubai real estate in coveted locations has risen by up to 88.8% in 2022 so far. The third quarter saw an increase of prime property values by nearly 30% thanks to a massive influx of high-net-wealth individuals who have chosen Dubai as the perfect place for a second home. The Palm Jumeirah, for instance, has seen prices rise by over 100% since the onset of the pandemic. This trend is significantly different from Dubai’s two previous market cycles which were both dominated by buy-to-let investors and those looking to “flip” properties in an effort to make quick cash. This time around, the dominance of second-home purchases driving the market indicates that a growing number of people are looking to settle down and call Dubai their home.

 

  • Dubai Market Risk of ‘Bubble Burst’ is Very Low, Say Experts – A recent study from Swiss bank UBS Global Real Estate has revealed that Dubai presents the second-lowest risk among 25 of the world’s major cities for having a real estate “bubble” burst. Even though Dubai has had a particularly hot year for sales, rental increases and house price rises, the market as a whole has only just returned its 2019 level and remains 25% lower than its peak in 2014. This puts current house prices at a “fair value” level, with growth likely to continue throughout 2023, albeit at a slower pace as higher financing costs kick in. It is still widely anticipated that the improving transparency of sales transactions, combined with excellent visa reforms and a high emphasis on quality of living for residents, will keep Dubai on an upward market trend for the foreseeable future.

 

  • Will Soaring Villa Prices Damage the City’s Competitive Edge? – As Dubai’s property prices increase exponentially, particularly in the prime sector, and the average rental value has also shot up between 26-27%% in the year through September, real estate advisor CBRE has issued a strong word of caution. The Head of Research at CBRE has warned that this kind of rapid growth may have an unintended impact on the city’s competitive edge, which is currently one of the biggest factors attracting investors and expats to Dubai. It may be that the rise in prices may end up going beyond what is considered “fair value” and result in an unaffordable market for the vast majority of the current population. This type of set-up has been seen before in cities such as New York, where a void grew between the hyper-wealthy and the city’s homeless population, outpricing all those in between who could not afford to own a home or even rent and were forced to leave the city in search of a more temperate market.

 

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.

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