The Dubai property market breaking all anticipated records beyond expectations, with AED 61.9 billion in residential transactions so far in 2022.
Based on various factors, including the government’s diversified import strategy and the strength of the US dollar, however the global inflation spikes will have a limited or no impact on the UAE economy and Dubai’s real estate market for the time being.
“Dubai Market stability attracted lots of investors, by monitoring and measuring the market growth from early 2021 post COVID pandemic and the results exceeded expectations, followed by the geopolitical conflicts on the borders of east Europe and the impact on European economy as well as the Chinese market on the other hand and its surrounding Asian countries, all eyes goes to UAE market as the country is fully recovered from COVID and open for business in no time adding to this the investment security made it a sanctuary and a salvation for investors” quoted Salah Omar, A1 Properties
property prices in Dubai are likely to rise by 5-7 percent in the mainstream market and 12-15 percent in the elite areas this year.
According to Oxford Economics statistics, Abu Dhabi’s GDP growth will return from 0.5 percent to just over six percent in 2022, while Dubai’s GDP will grow by a similar amount.
In terms of interest rate hikes and their impact on buyers who use mortgages to finance their purchases, mortgaged buyers account for just 18 percent of Dubai’s residential market value at the moment, down from 40% last year and just over 50% in 2007.
Most foreign investors are mainly attracted by the Dubai’s economic stability, low cost of energy and more importantly, the tax-free environment for companies in Dubai. The absence of limitations on repatriation of profits also makes Dubai an attractive environment for both local and foreign investors. The number of transactions, we have seen so far this year, 2022 could be on course to see a breakthrough record over the past decade and marvelous recovery in less than 2 years.