CONNECTING YOU TO OPPORTUNITY
The UAE continues to prove the strength of its diverse market by showing tremendous growth in its oil and non-oil business sectors. In recent years, one of the businesses that have displayed a significant demand in the UAE is the real estate market.
With stable and promising ROIs, the surge in demand for residential and commercial properties in the UAE has increased, opening more investment opportunities for developers and foreign investors in the region.
In this article, we will explore the growing business opportunities of the UAE’s booming real estate market. We will talk about the following:
Dubai and Abu Dhabi lead the UAE’s real estate market boom
In 2021, the real estate market in the UAE recorded considerable growth, with approximately 61,000 properties sold.
This momentum was carried in 2022 as Dubai led the way in the UAE’s real estate market boom after recording a 47.6% year-on-year increase in lease contracts registered in the third quarter of the year.
Over the same period, the average property prices in the city have increased by 8.9%, average apartment prices rose by 8.0%, and average villa prices rose by 14.3%. Overall, the average rental rates in Dubai have recorded their highest growth rate increasing by 26.6%.
The UAE’s capital, Abu Dhabi, has also recorded an upward trajectory in the same year after reaching a 3.2% average property increase in the residential sector. During the same quarter, average apartment prices rose by 3.3%, while average villa prices surged to 2.7%.
Sectors where the demand is high
These are the sectors that are showing a good demand in the UAE’s real estate market scene for the next 2-5 years:
3.Office rental: In the Q3 of 2022, the rates for office lease grew by 2% on average, although additional incentives may have influenced effective net rents.
Where to invest in real estate in the UAE
Real estate opportunities in the UAE are vast and varied. There are jurisdictions to suit all kinds of investors, from luxury villas and apartments to commercial and industrial properties.
4.Ajman, Umm Al Quwain, and Sharjah real estate: all offer a variety of real estate opportunities with lower prices than their more popular counterparts in Dubai and Abu Dhabi.
What caused the high demand for real estate in the UAE?
Various initiatives and continuous efforts from the government are the main factors for the UAE’s real estate boom. This includes the introduction of visa reforms and favorable tax laws backed up by the UAE’s growing population.
In addition, the recently held 2022 FIFA World Cup also became a catalyst for the surge of demand and prices of properties in the UAE.
Is it the right time to invest or buy a property in the UAE?
The short answer is yes. With the market expected to continue to grow in the next 5-10 years, it is advisable to get an investment property in areas with high demand.
What to remember?
Investing in real estate in the UAE comes with a lot or risk and benefits that you must be aware of. If you are interested in investing into properties, then it is essential to seek business advice from consulting firms, like Creative Zone.
How Creative Zone can help
In order to ensure a profitable investment, you must get professional assistance from our business experts in Creative Zone when starting a real estate investment in the UAE. Our team will assist you – from choosing the properties to get to up to selecting the most appropriate jurisdiction for your investment.
Begin your entrepreneurial journey by taking advantage of our free consultation today.
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