The Future of Real Estate: Exploring Property in UAE in 2023
Property in UAE in 2023 is in two words – a hot cake. According to a June 2023 Arabian report, real estate revenue grew by 75% in 2023, registering about 261 billion AED, in comparison to 149 billion AED in the last year 2022. Putting that in context, it means the revenue as of June 2023 is about $6 billion dollars! When you compare these statistics with the statistics for the last half-decade, you will see an exponential increase. See the table below for a quicker review of the growth in the past years:
|2023||261 billion AED|
|2022||149 billion AED|
|2021||151,070 billion AED|
|2020||175 billion AED|
|2019||226 billion AED|
|2018||221 billion AED|
|2017||84 billion AED|
|2016||103 billion AED|
|2015||267,027 billion AED|
|2014||217,808 billion AED|
|2013||236 billion AED|
Source: Gulf News, Dubai Land Department, and Arabian Business News
Explanation: From the chart above, you can see that the real estate market in Dubai is peaking, and regaining stamina over the years, as it is reaching its all-time range in 2023, according to Emirates.Estate, experts agree that as the rate of growth being experienced in the first half of the year continues, the number of property sales and transactions will exceed 300 billion AED which is the best rate in the past decade, to say the least.
Who Are Those Enjoying the Exponential Increase?
Simply put, the persons who are benefiting from the exponential increase and buoyancy in Dubai’s real estate, are those who invested earlier, particularly investors that purchased properties in 2016 through to 2021. That is because their properties would have doubled by now. One cannot clearly state how high the market will go, but as far as the past half-decade, it has been good, it may be a good time to invest now, as there are many factors that will affect the market positively. Joining the investor’s terrain of Dubai now, will preserve your capital, to say the least, and based on track records of previous years, make you some additional monies by profit.
5 Top reasons to invest in Property in the UAE
- The Lucrativeness of the City: There is no need to reemphasize this point. Thousands of transactions take place in Dubai per annum, and billions of dollars are traded. A market that is always on the move with money exchanging hands is a live market. Being that revenue will be created by transaction; people get jobs through the process, and there are taxes, and expenditures being made in the city, etc. If you need a stable market to place your bet on or to invest in tourism real estate, Dubai is a great place to start looking. The profitability of the sector is one of its most alluring factors for ex-pats and business investors.
- Stable exchange rate: Secondly, a very silent yet controlling factor is the issue of exchange rates. Internationally, the stability of a country’s currency impacts its public image, has social pedigree, and is an indication of a stable economy. The legal tender in Dubai is the Emirati Dirhams and it has a measure of stability in the country and trades well on the international stock market. Currently, a dollar is equivalent to about 3.67 UAE dirhams, signaling that the latter is a very strong currency. Investors from around the world also rely on these facts to trade, knowing that there is a solid reputation and reliability in the UAE.
- Instalment Payment Options: Dubai may be an expensive city to live in, with all of the luxurious properties that saturate the town. However, the city also has one of the most flexible payment plans possible. The plans allow you to, as in any other country, make only a downpayment, and subsequently pay in installments until the mortgage is complete. People often leverage this factor to purchase properties in the city. Additionally, the percentage of downpayment required may differ based on the developer and other features of the property, so you may need to be clear on the terms before you purchase a property.
- Low Crime Rate: Dubai is a reasonably safe place, and that safety gives it another measure of credibility among ex-pats and indigenes. There are certain places that may be hot zones for certain crimes, but street waylaying, armed robberies, and assaults are minimal in the main city areas. More so, people are forced to be well-behaved due to strict regulations and legal conditions. For example, road rage is an offense, and there are a host of other things you could do and get fined for it, so people are usually on their lanes and law-abiding. The Police system is also quite responsive in the event of a report.
- No Property Tax: Having lived in any of the European states, you will greatly appreciate the no-tax policy of Dubai. You may yet have to pay some bills, however, such as municipality levy. Also, when transacting, the sum of a 4% transfer fee is payable upon the purchase.
How to Start Your Real Estate Journey in Dubai, 2023
Now, worthy of discussion, is the indices of real estate investment. You must understand that there are no manuals or hard and fast rules. In fact, it need not be a chore, or done in a rigid manner because that could dissuade you and potentially take out the fun from the tour. The aim should be to therefore combine the art of traveling with tourism, and real estate seamlessly.
The future of real estate in the UAE is brimming with excitement and innovation. The property market in 2023 promises to be a dynamic and transformative landscape. Now is the perfect time to explore the endless opportunities that lie ahead. So, fasten your seatbelts and get ready for a thrilling ride into the future of real estate in the UAE!