The recovery of the real estate market in Dubai mentioned in the first quarterly real estate report is confirmed and becomes concrete.
Since November 2020, property prices have risen by an average of around 2.1 percent per month. Demand remains robust and the trend towards houses and villas is continuing. This segment has also seen the strongest price growth. This is also reflected in the mortgages concluded. Mortgages for villas and houses are increasing, while those for apartments are decreasing at the same time. In addition, completed properties (secondary market) continue to be preferred and account for the majority of all property transactions at over 62 percent.
However, this trend could shift towards new construction projects in the coming months. Many new construction projects are currently gaining momentum, as evidenced by June 2021 sales transactions. Sales of new construction projects increased by 51.2 percent in June to about 3,800 transactions.
In this context, a significant increase in European buyers is noted. An important indicator when it comes to the future and attractiveness of Dubai. We are also enjoying a significant increase in enquiries from Germany and Switzerland, not least with the aim of relocating to Dubai. Another indication of this trend is the increase in school enrolments, which in plain language means that Dubai is also attracting families with children from Europe.
Again, this is evidenced by the June 2021 figures, which, according to Property Finder, saw the highest total volume of sales transactions since December 2013, making it the highest monthly volume of property sales in eight years.
Dubai's real estate sector is steadily gaining attractiveness for foreign investment. The regulatory environment, leading infrastructure and flexible adaptations to the latest developments prove this impressively. This is evidenced by the results achieved in the sector over the past few months, especially since the beginning of this year, helping to strengthen the emirate's global position for real estate investment.
The Property Monitor Dynamic Price Index tracks the performance of residential property prices in the most popular residential areas in Dubai and is indexed to a base period of January 2008.Announcements such as the Retirement Visa and the 2040 Master Plan are also attracting foreign investment. In addition, with the start of Expo 2020 approaching, a further upswing in the real estate sector is expected. Expo 2020 will attract tourists, visitors and investors from around the world and represents a great opportunity to strengthen Dubai's positioning regionally as well as globally.
Our conclusion
Despite rising temperatures in Dubai, we are seeing continued demand and interest in real estate investment in Dubai. Investors are flying to Dubai despite the heat and there is no sign of a "summer break".
As already mentioned, many inquiries are Swiss or Germans who want to emigrate or are looking for a second home. In addition to the well-known factors that make Dubai an attractive location, the increasingly confused covid situation in Europe, which does not calm down and sometimes takes on chaotic features, helps. As Dubai expats, we can well understand this and enjoy the 'freedoms' in Dubai accordingly and of course hope that the upcoming Expo 2020 will be a success and that the demand for real estate remains stable - in any case, we are happy about every new inquiry regarding real estate, company formations or visa issues.