Dubai’s secondary real estate market booms in first quarter
Property investors from the UK, Italy, and France claimed prime spots in the top-10 list of foreign investors in Dubai as the emirate’s real estate sector witnessed the dominance of the secondary market in the first quarter.
The emirate’s resurgent realty market recorded the best ever quarter since 2010, with a total of 20,539 sales transactions valued at Dh55.5 billion.
Investors from India and Pakistan also made significant investments in Dubai real estate during the quarter, which also saw a big increase in Canadian investors and buyers. Investors from Russia, Lebanon, and China were among the other three nationalities in the top-ten list.
Secondary market shines
Citing official data, the Zoom Property Insights said the secondary market dominated the real estate sector as it constituted around 58 per cent of total sales transactions, while the remaining 42 per cent of sales were recorded in the primary market.
In April, the Dubai real estate market enjoyed its second highest ever April in terms of transactions, according to the latest data. A total of 60 per cent of the transactions were in the secondary market and 40 per cent in the off-plan market. This represents a 46 percent increase in volume and 67 per cent increase in value year-on-year, and comes after a record-breaking March.
Upward trend to continue
April saw a total of 7,009 sales transactions worth Dh18.3 billion, according to data available on the open data platform of Dubai Land Department. It was also the second highest April on record for sales volume and value, with April 2009 being the highest. Among the top areas for sales transactions in April for villas and townhouses was Arabian Ranches-3 for off-plan, and Dubai Hills Estate for the secondary market.
The market is expected to continue its upwards trajectory with more foreign investors pouring into the market, owing to visa reforms and economic stability. The changing scenario in the Dubai labour law and the abundant entrepreneurial opportunities are also attracting a huge number of investors, according to Zoom Property Insights.
Ata Shobeiry, CEO at Zoom Property, credits overseas investors for the exceptional performance of the property market in recent months.
“The rising demand, property prices, and ROI can be majorly accredited to the influx of overseas investors. Expo 2020 facilitated the visit of many first-time investors, who ultimately decided the market is worth investing in. I believe the recent announcement of the new green residence visa and broadening eligibility criteria for the golden visa will provide more opportunities for foreign investors, resulting in an even better performance in subsequent quarters,” said Shobeiry.
European investors dominate
The market remained dominated by European investors during the first quarter, with the UK, Italy, and France occupying the first, third, and seventh spots on the list of top nationalities investing in Dubai. Canadian buyers increased by 116 per cent during Q1 2022 as compared to Q1 2021. Investors belonging to the sub-continent, India and Pakistan, ranked second and eighth respectively, also contributed to the remarkable performance of the property market, according to the Zoom Property Insights.
The number of Russian investors in the Dubai property market has increased by over 65 per cent, as the country enjoys a fifth spot among the top investing countries. Lebanon and China are the other two countries that made significant investments in the Dubai property market during Q1, 2022.
According to Zoom Property Insights, foreign investors belonging to other regions are also expected to enter the market as it continues to show its high performance. Experts believe that 2022 will conclude on a stronger note due to the increasing prices and demand.