I hope you have had a relaxing week. This week we have been discussing the differences between investing in the Dubai property market and property investment in the UK.
Buying property is not a one-size fits all venture and it is important to keep an open mind when considering your options. If you would like to discuss the best location for your next investment, we have a vast amount of knowledge and market data to share with you.
Reply to this article today to speak with us.
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.
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
- Q2 Sees Dubai Prime Real Estate Value Grows by 23% – Analysts at Luxhabitat Sotheby’s have reported that the Q2 2022 average market volume has grown nearly 10% in comparison to this year’s first quarter. The prime property sector is still performing strongly, shooting up by 23% as high-net-wealth investors continue to be drawn to the impeccable builds and ultra-luxury lifestyle available in Dubai. The sales value for prime properties in Q2 totalled AED21.5 billion ($5.85 billion). Of these sales, apartments outsold villas after many months of dominant demand for high-class villas. The wider market is also looking very healthy, with overall property transactions in Q2 2022 surging by nearly 10% from the previous quarter. Dubai Marina, Downtown Dubai and Jumeirah Islands were the areas showing the most significant uplift in sales volumes. With excellent products, value and visa options, high demand in Dubai is predicted to continue well into the third quarter and beyond.
- Rental Growth Hits 8-Year High in Dubai Residential Market – In what will be music to the ears of Dubai landlords, rental growth in the city has now reached its highest point in 8 years for both apartment and villa rentals. The prime communities of Palm Jumeirah and Al Barari experienced the highest percentage growth in Q1 2022 as their popularity among renters and buyers remains strong. For this period, the number of secondary market purchases and off-plan sales was almost neck-and-neck, with off-plan ahead by just 1.9%. Q1 also experienced the highest volume of transactions in total, with 45,793 year-to-date sales recorded in July; the highest volume recorded in 13 years. Of the various property types for sale in Q1, villas outcompeted all others for price growth as it reached a 17.8% year-on-year boost.
- Qatar World Cup Boosts Number of Dubai Short-Term Rentals – Last year, short-term lettings in Dubai rose sharply as visitors flooded in for Expo 2020; a monumental festival of technology, innovation and creativity that showcased some of the world’s most prolific talent. This year, Dubai is already preparing for another huge influx of visitors in anticipation of the 2022 FIFA World Cup in Qatar. According to experts, this will cause another spike in the number of short-term rentals as landlords seek to cash in on the heightened demand, maximising their property’s earning potential. Agents have already reported seeing more activity within the short-term rental market, including more available stock in this sector, as landlords move from standard ASTs to the STL model for higher net yields. Landlords looking to switch to STLs are encouraged to consider their property’s location, amenities, proximity to popular venues and long-term viability – including potential void periods – before committing to the change.
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.