I hope you’ve had a great week. This week, we have been comparing some of the most prominent Dubai projects on our portfolios and discussing their unique selling points.
Dubai is a wonderfully diverse and varied city, with no two developments ever being alike.
If you are pondering the tenant demographic you should be aiming for and which developments would be best suited to it, feel free to contact us. We are always available to chat, with lots of information to help you decide.
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
Dubai’s Off-Plan Market Picks Up the Pace – In 2020, the Covid-19 pandemic caused widespread havoc to economies on an international scale – and Dubai was no exception. However, where Dubai differed from other similar cities across the globe was the phenomenal strength of its comeback in 2021. Throughout the 2020 slump, developers in Dubai were busy planning how to use the global economic downturn to their advantage, adapting project plans to match the evolving needs of homebuyers and determined to be at the cutting edge of the international house market. This innovative approach, combined with the government’s swift and proactive handling of the crisis which aimed to resume “normal life” at record speed, has resulted in Dubai’s remarkable V-shaped recovery. A steady stream of new development projects being launched and current ones being completed on schedule has also contributed to sales rising sharply – a trend that began in mid-2021, gaining traction toward the end of the year, and is predicted by market analysts to continue well into 2022.
- Russian Billionaires Pay £300,000 a Year to Escape to Dubai – Over the past few months, the UK, EU and USA have all been swift to condemn Russia’s invasion of neighbouring country Ukraine, using sanctions as a means of attempting to rein in Russia’s headstrong leader Putin and bring about peace talks between the warring countries. However, the leaders of Dubai have chosen not to go down this route and instead to adopt a neutral stance, welcoming both Russians and Ukrainians to its shores. With no sanctions or flight restrictions, Russian billionaires have been flocking to Dubai in an attempt to “wait out the war.” Offered the same excellent standard of living they are used to, wealthy Russians are opting to pay an average of £300K per year thousands of pounds to stay in luxury Dubai resorts and enjoy everything the glittering city has to offer, condemnation and restriction-free. Since the onset of Western sanctions, a host of private jets and superyachts have reached Dubai’s shores, where wealthy oligarchs hope to wait out this conflict in peace and relaxation.
- Dubai’s Property Market on Upward Trajectory – It has now been two years since Dubai came under lockdown due to Covid-19. Since this stressful time of uncertainty, much has changed thanks to Dubai’s visionary leaders. Throughout the pandemic, developers in Dubai were supported by the government to continue their work and create new adaptive measures for both working through the pandemic and for the development plans themselves as people’s lifestyle needs changed to require more space, sustainability and smart technology. With normal life swiftly returning toward the end of 2020, after a short lockdown and an admirably fast vaccination programme, the number of secondary transactions began to rise. Looking back, proactive government handling can be seen throughout all aspects of policy and decision-making, such as their timely delay of Expo 2020 and the strengthening of their already-attractive visa programmes. As a result, property transactions in the city went through the roof in 2021, breaking records and evidencing a clear renewed buyer confidence both domestically and internationally.
- International Property Show in Dubai Ends on Positive Note – The International Property Show 2022 has now come to a close at the Dubai World Trade Centre, where organisers confirmed a notable increase in participation compared to its previous show. Based on the number of participants in this year’s show, which provided a sales platform for domestic and global real estate transactions, it appears that business has returned to normal pre-pandemic levels. Organisers of the show reported on its success, revealing that the three-day event resulted in strategic new partnerships being formed and a number of high-value investments arranged across major property development projects. The success of this event reflects a high level of trust and confidence in Dubai with both the domestic and international buyer’s market, where investors expect steady house price growth in the years to come.
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.