I hope you are enjoying a restful weekend. As Q2 of 2022 begins, we are very excited to see the incredible progress visible across the evolving landscape of Dubai.
This year, many long-awaited projects are due for completion imminently and are poised to be spectacularly revealed to investors around the world. Now is a perfect time to join the scene, with experts predicting another excellent year for Dubai property investment.
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 News This Week
Expert Says Oversupply Was Never the Real Issue in Dubai – Over the past decade, the media has repeated the familiar narrative that oversupply alone lead to Dubai’s infamous 2008 market crash. But was there more to the story than that? When any market slows, it is natural to point fingers at any potential factor at play, and with supply being such a broad and multi-faceted issue that no specific person, company or government official is squarely to blame, this allows all the various participants to conveniently blame the other. This mass generalisation has helped to perpetuate the over-simplified undersupply narrative for many years. The true issue causing a lack of demand may actually lie with sharply rising house prices climbing well beyond the replacement value. No sooner had the price cycle changed course, than the media swiftly dropped its trope. Now it appears you will no longer find undersupply spoken of among the majority of Dubai news articles. While there may be some truth in both ends of the over-undersupply narrative, all discerning readers will wonder what the true landscape looks like when not being clouded by vague or partial analysis.
- Home Loan Rates Expected to Rise Amid Dubai’s Booming Market – After an exceptional market rebound resulting in a record-breaking growth rate in the final quarter of 2021, the Dubai real estate market is continuing its upward trajectory and is projected to continue to boom as 2022 progresses, with home loan rates predicted to climb while the market balances itself. Breaking a lengthy 12-year record, the value of property deals in Dubai rose by over 100% last year, demonstrating the remarkable resilience of the UAE real estate market. Global real estate brokerage firm Berkshire Hathaway Home Services has released its 2022 report, which showed the vast majority of property professionals surveyed felt confident of Dubai maintaining and building on its current upward trend. With highly incentivised overseas investors now able to take action after the pandemic, demand for prime Dubai real estate has risen, resulting in growing prices. However, according to Dubai-based property experts, higher prices will not put a damper on demand. However, the executive vice president & global head of real estate finance and advisory at Mashreq Bank has suggested that demand could cause a shortage in prime communities.
- Bitgara Allows Cryptocurrency for Dubai Real Estate Purchases – It is no secret that Cryptocurrency has been a hot topic for investors around the world for the past few years, with a large number of multi-platform investors now actively building their crypto portfolios. Due to its widespread popularity, cryptocurrency is already being adopted by various sectors. For many, it would seem like a dream come true to be able to use profits and savings held in crypto to purchase a brick and mortar property. Connecting cryptocurrency to tangible gains in the material world is not only a highly popular concept but is also crucial for the overall progress of crypto in the future. The innovative business Bitgara, which has been active now for over ten years, is now offering real-time, safe and simple intermediary services to enable real estate buyers in Dubai to purchase their dream home with cryptocurrencies. With an extensive amount of experience in the cryptocurrency sector, Bitgara is dedicated to helping investors, both domestic and overseas, to take this unprecedented step and use cryptocurrency to make real estate purchases. Using their expertise, Bitgara’s key focus is maximising return on investment for the buyer in this very unique field.
- Dubai Residential Market Experiences Record First Quarter – 2022 has started with a real bang for the Dubai property market. In March this year, the total transaction number of residential purchases in Dubai hit 7,865. This was an increase of 83.4% from the previous year. Throughout the same time frame, off-plan transactions grew by nearly 95%, while sales from the secondary market hit just over 76%. From March 2021 to March 2022, the number of total transaction volumes reached 19,009 – a record-breaking number achieved for the first quarter of the year.
By March this year, average Dubai house prices had grown 11.3% year-to-date, with apartment prices rising by an average of 10% and average villa prices by 20.2% respectively. With so many factors driving Dubai property prices, including the government’s continued efforts to actively encourage property investment, most experts agree there is nowhere to go but up for the real estate market in 2022.
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.