United Arab Emirates, a promising prospect for real estate investment in 2022

Aldar Properties’ Yas Acres Abu Dhabi development is very successful in the buyer’s market
Image Credit: Gulf News Archives

A successful vaccination rollout in the United Arab Emirates, a rapid easing of Covid-19 restrictions and the meteoric opening of Expo 2020 Dubai have all seen the country’s real estate sector defy the odds of having a prosperous year.

On their own, property sales transactions in Dubai have grown by 88.37% per year in the first 11 months of 2021 as the UAE economy experienced a strong post-pandemic recovery. The emirate recorded 55,640 sales worth 135.4 billion dirhams from January to November, making it the best year in terms of total sales since 2014, according to data from the Dubai Land Department (DLD).

The UAE has therefore once again become a very attractive prospect for global investors, especially as a series of exciting new high profile developments have also started to be launched. In short, the market promises to be full of opportunities in the months to come.

The new projects have certainly revived real estate in the United Arab Emirates, with major developers such as Danube Properties announcing that they will launch two to three a year until 2026. The cost of these projects is estimated at around 1 billion dirhams. but could increase as Dubai property market continues to recover well from the impact of the pandemic. Danube has just launched the impressive Skyz Tower, a residential project with a development value of Dh475m.

Meanwhile, Abu Dhabi’s biggest developer Aldar Properties has also released the latest phase of its popular Yas Acres – Dahlias project. The community consists of 120 new spacious villas, duplexes and townhouses now available for purchase. Construction of Dahlias will begin in the second quarter of 2022, with delivery scheduled to start at the end of 2024.

Among the off-plan launches that are gaining international attention is Select Group’s soaring Peninsula into the heart of Business Bay. The modern development with its stylish apartments and villas will provide the rare opportunity to own a luxurious island home in the Dubai Canal itself.

The other emirates also present interesting opportunities for investors. Ajman Uptown’s gated development offers an astonishing range of properties, which includes a mix of apartments, townhouses and villas inspired by French architecture.

The payment plans here for off plan properties depend on the size and location of the property. In Sharjah, Maryam Island is a gorgeous waterfront option offering a selection of apartments complemented by a plethora of retail stores and luxury hotels. The community currently offers ready and off plan properties with a 24 and 36 month discount and 20/80 or 30/70 payment plans.

“I think 2022 will be bigger and even more successful than this year,” said Saleem Karsaz, CEO of UAE brokerage firm Aeon & Trisl.

“Knowing that all of these new developments are coming, along with all the new amenities to be hoped for like lagoons, golf courses, shopping malls, schools, hospitals – even the attractions that are being built within the communities themselves – same – are just indicators that the UAE is real, the real estate industry has a lot more to offer.

In terms of investing in established communities, Dubai experts point to Downtown, Dubai Marina, Emaar Beachfront, Dubai Creek Port, La Mer and Palm Jumeirah as the best buying options due to the areas under development, with a complete infrastructure as well as a -class facilities.

For many buyers the affordable segment will be very attractive in 2022 and there has been a constant stream of launches in this segment from various developers such as Danube Properties, Pantheon Development, Sun and Sand Developers and Akshara Global Real Estate. James Perry, Managing Director of the leading agency haus & haus, said: “Affordable housing is classified as anything that has rental or mortgage payments of less than Dh9,300 per month. “

He adds: “Dubai is generally considered a more affordable place to live, with property prices reflecting that. The government’s population expansion plan to 2040 aims to cover the salary range of low to medium households. Demand has been high, and this and speculative investors have pushed prices up. “

Affordable housing does not only refer to price, but to the flexibility of payment structures and the availability of mortgage facilities. These offer great opportunities for more people to buy their dream home – or to invest more easily within their financial capacity.

Upscale luxury properties in the UAE remain an attractive investment option, especially when compared in price to other cosmopolitan hot spots such as New York, London, Frankfurt, Beijing or Shanghai. “These cities are always a lot more expensive than what we have here in the UAE – especially in Dubai – so we will definitely see continued very high demand,” Karsaz said.

Luxury apartments have always been a real estate staple in Dubai, but for investors examining the market right now, there are a few insider tips worth considering.

“The main units would be the ones with an ocean view or a specification befitting the luxury label,” says Perry. “The quality has increased due to the competitive nature of the market and in Dubai the newer is often the better. “

The haus & haus MD also offers short term rentals as a good avenue for investors in high end apartments due to the high yields offered.

It’s also worth noting that off-plan villas and townhouses are in high demand right now, with developers in Dubai rushing to catch up. The best areas for transactions are Arabian Ranches 3, Villanova, Tilal al Ghaf of Majid Al Futtaim, South Dubai and Mohammed bin Rashid City, according to recent data from Property Finder.

“Over the past year, Dubai’s off-plan market has shrunk considerably,” says Lynnette Sacchetto, director of research and data for Property Finder.

“Today, we have bounced back on the 2019 ratios where the secondary and off-plan segments are close to 50:50. This is a clear indication that investors are returning to the market due to their confidence in Dubai’s future. “