An increasing number of foreign nationals are choosing Dubai properties as investments. The market is recovering, and sales are growing in the emirate. A new report of the Dubai Land Department shows that the real estate market of the metropolis is directly related to investment flows. Investors are interested in receiving a net return on high-yield real estate.
The first push to buy foreign real estate was the lowering of mortgage rates facilitated by the pandemic. The situation began to change in the second half of last year, with investors accounting for more than 61% of transactions. In 2021, the real estate market continued to grow by investors. Specialists say that rent increases will help to maintain the latest trends in 2022.
Increased demand led to higher prices. Villas were popular in the second half of 2021. Sales growth reached 200%, and house prices, according to ValuStrat, increased from 20% to 25%, depending on the location. Experts also note that due to lower mortgage rates, there is a constant demand to buy real estate on credit. People bought 37% of the housing units on credit, which is 7% more than in the same period last year.
