UAE – Foreign investors, end users and District 2020 will continue to drive growth in Dubai’s property sector this year as the emirate offers a complete lifestyle with excellent infrastructure to property buyers, according to reports.
Mortgage Finder, a technology-enabled mortgage advisory service powered by Property Finder, said around 82% of mortgages in the UAE last year came from first-time buyers and they are ready to reside in the property. Residents of the United Arab Emirates made up the majority of borrowers at 94%, while 90% of borrowers opted for fixed rate mortgages.
Another report says Dubai property is set to continue its golden run after Expo 2020 as foreign investors return to the market to capitalize on investment opportunities in the emirate.
According to Zoom Property Insights, the Dubai property market attracted a total of 52,415 investors last year and saw 72,207 new transactions with a combined investment of 148 billion dirhams in various projects in the emirate. This reflects a 100% growth in the value of investments, while the number of investors and investments jumped 65.6% and 73.7%, respectively.
“Of the total number of investors in 2021, around 38,318, or more than 50%, were foreign investors, who made 51,544 investments worth Dh99 billion,” Zoom Property Insights said, adding that this upward momentum would continue throughout the year, even after Expo 2020 drops its curtains on March 31, 2022.
The emirate is gearing up for the International Property Show (IPS) 2022, which is another event that will help attract foreign investment. From March 24, it will welcome investors from Spain, Serbia and Montenegro, Austria, the United States, Ecuador, Canada and Mexico, he added.
Ata Shobeiry, CEO of Zoom Property, said infrastructure, lifestyle facilities and visa reforms are some of the main reasons supporting the return of investors to the Dubai property market.
“Dubai’s excellent infrastructure, long-term visa options for foreign investors and world-class facilities are some of the main reasons attracting foreign investors. Expo 2020 has also played its part, but according to the latest trends, I think there will be increased activity in the market resulting from the return of foreign investors after the Expo ends,” he said. .
“Sustainability, economic prosperity, market diversity and high returns are some of the main reasons that keep Dubai property investors coming back,” Shobeiry said.
Mortgage Finder Managing Director Mohamad Kaswani said Mortgage Finder has seen unprecedented growth with our 2021 deals outpacing the previous two years combined.
Referring to data from the Dubai Land Department, he said the mortgage sector had a banner year in 2021, with deal values surpassing previous highs recorded in 2017 by 26%.
“We are energized by the trend of UAE residents choosing to put down strong roots by buying their own home here. This is a trend we noticed after the Covid-19 lockdown restrictions were lifted in mid-2020 and it hasn’t slowed down,” Kaswani said.
“The improved alignment between appraisals and purchase prices makes the mortgage process much easier for buyers. Furthermore, it is also a sign of maturity in market behavior as valuations have moved in line with market changes,” he added.
Apart from the return of foreign investors, the transition from Expo 2020 to District 2020 is also expected to boost Dubai’s property market in 2022. It is expected to be a mixed-use community, which will use 80% Expo resources.
As Expo draws to a close in days, District 2020 will continue its legacy as a sustainable, human-centered future city. It will include expansive retail and commercial spaces as well as modern loft or urban style residential units. Delivery is expected to take place in October 2022.
Haider Tuaima, Director and Head of Property Research at ValuStrat, said the District 2020 project will repurpose 80% of the current Expo 2020 site and become one of the five major urban centers under Dubai’s urban master plan. 2040 announced in early 2021.
“District 2020, a future Expo 2020 legacy, is expected to have over 200,000 square meters of LEED-certified Class A commercial and residential space, as well as 45,000 square meters of green space. The location benefits from a direct link to the metro network, three major highways, 90 minutes from three international airports and a seaport,” Tuaima said.
He said demand has already been demonstrated by the signing of technology and innovation-focused anchor tenants such as Siemens, Terminus, DP World and Siemens Energy.
“Strategically, given its location and advanced infrastructure, there is no doubt that District 2020 will be a successful hub for international business and act as an important catalyst for the entire city,” he said. he declares.
Husni Al Bayari, Chairman and Founder of D&B Properties, said Dubai’s property market will continue an upward trend this year.
“We remain optimistic for off-plan and secondary markets in the new quarters of 2022. There will still be strong demand for prime locations with multiple off-plan and secondary market transactions,” Al Bayari said.
“With Expo 2020 Dubai approaching and excellent residency visa options becoming more accessible, we expect a surge in sustainable and innovative projects in Dubai, attracting even more end users, investors and a new generation in the city,” he said.
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