I hope you have had a wonderful week. Back in London, our office joins the rest of the UK this week in celebrating the Platinum Jubilee, marking Her Majesty the Queen’s 70 years of service to the people of the United Kingdom, the Realms, and the Commonwealth.
Dubai has some remarkable leaders of its own, with the past decade showing their truly mind-blowing transformation in and around the city. With vast amounts of regeneration, terraforming and cutting-edge infrastructure, residents of Dubai can look on their unique heritage with a tremendous sense of pride.
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
- Foreign Demand is Pushing House Prices to New Heights – According to the latest May 11-26 Reuters poll of 13 property market analysts, data showed an average climb of 7.5% in Dubai house prices throughout 2022. This percentage has not deviated from the same poll taken two months prior. Analysts agree that Dubai house prices are predicted to rise at an even pace between now and 2024 as increasing demand from overseas investors continues to influence market trends. However, some analysts warned that growing interest rates and an undersupply of affordable houses could put a damper on this activity. Last year saw Dubai cast off its history of property market weakness as a reinvigoration of the trade and tourism market combined with higher energy prices sky-rocketed the economy to new heights. Since its dramatic V-shaped recovery, the Dubai market has continued on its upward trajectory momentum into 2022, fuelled by eased restrictions, Expo 2020 interest and the re-opening of travel corridors.
- New Visa Regulations Drive Interest in Dubai Real Estate – Following the government announcement on favourable new UAE visa rules, the number of Dubai resident and visitor enquiries on buying property has tripled. The new visa rules include an easing of the eligibility criteria for long-term visas, including Green Residency and the famously-generous Golden Visa. They have also adjusted long-term entry permits for tourists, students, job seekers, professionals, entrepreneurs and investors. entrepreneurs, professionals, job seekers, students and tourists. Following the pandemic, the UAE government has gone to incredible lengths to change the course of Dubai’s economy, and its hard work has paid off – with interest. The loosening of visa restrictions has already been a hugely popular move, positively impacting many core sectors such as construction and real estate. All this will drive Dubai’s ambitious goal to increase its population to 5.8mn by 2040. In turn, this increase of 2.3mn will creates even more demand for residential, commercial and hospitality properties.
- Dubai Tenants Face Further Rent Increases as Demand Surges – Experts predict that villa rents may increase to 15% throughout the remainder of 2022 as demand surges due to a population boom. Both current and upcoming villa developments have seen demand increase in the first quarter of this year, resulting in rental prices and occupancy rates both increasing sharply. At the peak of the pandemic, the population of Dubai dropped by 8%, but the economic recovery beginning last year has caused a rise of 10%, with numbers sitting at some 3.5 million as of Q1 2022. Many of these new residents are ex-pats drawn by the government’s intelligent and non-draconian handling of the pandemic and the excellent quality of living in Dubai combined with relatively affordable price points. This new interest has put pressure on the rental market which has seen substantial price increases as demand grows significantly.
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.