2021 was a record year in Dubai real estate sales. The increase in demand spurred a rise in prices. This is true of luxury real estate. Forecasts suggest that the situation will continue in 2022. Prices are likely to rise by up to 6%. According to Savills, Dubai is the third-largest city in 2021, with a high rise in the price of luxury properties. Investments in it are the most profitable. The process is associated with the capitalization of the average housing value. In 2021, it exceeded 17% and will decrease slightly, but will reach 4-5.9%.
Miami and Los Angeles occupy the first two places in the top three. The price growth in these cities was 21% and 20%, respectively. The situation affected not only the sales market but also the rental sector. The increase in demand is associated with the return to normal life after the pandemic. The capitalization of the property value in the world's largest cities can reach 10%. And there is no doubt that Dubai will be in the top of the leaders again.
Three factors influence the Dubai market: increased interest of foreign investors, a limited supply of luxury properties, and affordable mortgages. Despite the uncertain mutation of the virus, the UAE will remain a country where people will come not only to work but also to live. Therefore, the Dubai market will continue to develop.
