84% real estate professionals expect competition to ramp up finds Berkshire Hathaway report
Dubai’s property market has proved remarkably resilient during the pandemic, and more than 84% of real estate professionals expect competition within Dubai’s real estate market to ramp up going forward, according to the 2022 EMEA Real Estate Report published by Berkshire Hathaway HomeServices global headquarters. The report reflected the experiences of residential real estate professionals across seven key markets for Berkshire Hathaway HomeServices consisting of Dubai, United Kingdom, Germany, Italy, Spain, Portugal and Greece over the past 12 months.
More than two thirds of respondents in Dubai said they had experienced growth over the previous twelve months and expect this positive trend to continue, with a noteworthy 77% – the highest figure reported across EMEA countries – predicting the market will grow further in the coming year. These figures, when coupled with a strong outlook for further growth, suggest that Dubai’s property sector will continue to display considerable vitality soon.
Commenting on the results of the report, Dounia Fadi, Chief Operating Officer of Berkshire Hathaway HomeServices Gulf Properties, said, “The positive momentum witnessed in 2021 is an encouraging sign of things to come in 2022 for the UAE real estate sector – much of which has been driven by the UAE government’s handling of the COVID-19 pandemic, combined with the series of reforms it has introduced to support economic growth and supported further still by EXPO 2020.”
In the last quarter of 2021, the UAE’s real estate market witnessed record-breaking growth since records began. In November 2021, Dubai registered the best month of sales on record, with a total of 6,989 transactions worth Dh17.95 Billion. When looking at transaction volumes, Dubai reported a total of 57,043 for 2021, representing a 73.6% increase on 2020 and a 51.6% increase on 2019.
Real estate professionals attribute Dubai’s growth over the past year to have been supported by EXPO 2020 as they observed an increase in market value of property coupled with an increase in demand both regionally and internationally.
With UAE being at the forefront of innovations globally and geographically located around the center of the world, Dubai is getting acknowledged and respected by investors across the EMEA region and wider globe. Dubai’s real estate professionals estimate that roughly 60% of residential real estate investment has been generated from outside the region, with under half 40% of demand for property originating locally. According to the findings, a third 32% comes from international investors within EMEA, and just over a quarter 27% from outside of EMEA. Additionally, more than 50% of respondents based in Dubai are most likely to say that the balance of international versus domestic investment will change in the next three to five years.
“We must recognise the Dubai’s market has totally transformed. In just a few years, we’ve seen a marked shift from a market that was almost entirely domestically driven in the past, to one that is attracting more and more foreign and institutional capital. The country’s investments in world-class infrastructure coupled with the exceptional lifestyle and amenities, from the world’s best hotels and restaurants have helped transform the city into a destination that people want to live in. We see this to be true as people from all parts of the world including Europe, India and UK continue to choose to live in Dubai and furthermore add up to the tally of over 200 nationalities of expatriates that make up for roughly 85% of Dubai’s population.” further commented Dounia.
In term of types of houses in demand, more than half 55% of property professionals said that the pandemic had generated increased demand for starter homes. Dubai is often seen as a luxury, second home destination, but the results illustrate a shift towards purchasing first and primary properties in the wealthy hotspot. The pandemic has also showcased that demand has grown for most property types, but most significantly, there was a 57% rise for detached homes and 58% for apartments and flats in Dubai. Furthermore, the proximity to amenities is particularly in-demand in Dubai with almost 70% of respondents highlighting the highest metric reported across the EMEA region.
