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24 August, 2022

Why Dubai Property Market increased by 1.5 times in the 2nd quarter of 2022

In June 2022, the Dubai residential property price index hit a ten-year high. The Land Department has registered nearly 9,000 sales transactions totaling AED 22.75 billion, or $6.27 billion.

Foreign investors can obtain a UAE residence visa when buying property in the country. Depending on the value of the object, a visa is issued for 3 years or 5 years.

The dynamics of the real estate market in the UAE: how to get a resident visa when buying a home in Dubai
Photo: Adobe Stock

Property sales in Dubai up 46% compared to 2021

From April to June 2022, 22,504 sales transactions were registered in Dubai. The total amount of transactions amounted to AED 59.15 billion or $16.1 billion. Real estate sales volume increased by 45.9% compared to the same period in 2021.

The Dubai Land Department calculates the Mo’asher House Price Index. This indicator allows you to regularly assess the state of the residential real estate market – it is updated every month, quarter and year. The data for 2012 were taken as the base values ​​for calculating the index.

The property rental price index in the 2nd quarter was 0.968, and the index price was AED 52,133, or $14,370 per year. At the same time, for certain types of real estate:

  • for apartments – AED 47,764, or $ 13,166;
  • villas and townhouses – AED 133,085, or $ 47,764.
$349 000
Average cost of residential property in Dubai in the 2nd quarter of 2022

In June 2022, 8.8 thousand purchase and sale transactions were registered for a total of AED 22.75 billion, or $6.27 billion. This is the highest volume of purchase and sale transactions in June since 2012.

60% of all registered sales transactions were concluded for the purchase of real estate in the secondary market.

Demand for the UAE Golden Visa has doubled since March 2022, when most European residency programs suspended Russian investors.

To participate in the UAE program, a relevant amount of €300,000 or more is required, and investments are also possible in real estate, an asset that is still preferred by most investors.

In general, the demand for the second document, which guarantees freedom of movement, has noticeably increased in the world. In addition, the UAE is one of the most actively developing countries, which attracts wealthy foreigners with the level of infrastructure and comfort they are accustomed to, as well as premium-class development.

Natalia Oganesyan - Immigrant Invest
Natalia Oganesyan
Real Estate Chief Operations Officer, RICS certified professional

The rental market is growing: the share of new rental agreements is more than 60%

From April to June 2022, 124,000 lease agreements were concluded, of which 60% were new contracts, and 40% were renewal agreements.

The property rental price index in the 2nd quarter was 0.968, and the index price was AED 52,133, or $14,370 per year. At the same time, for certain types of real estate:

  • for apartments – AED 47,764, or $ 13,166;
  • villas and townhouses – AED 133,085, or $ 47,764.
$14 370
Average cost of renting residential property in Dubai in the 2nd quarter of 2022

In June 2022, the most popular areas in Dubai for property rentals are:

  • Jebel Ali First, where 1423 contracts were signed;
  • Al Warsan First - 1311 contracts;
  • Al Barsha South Fourth - 1250;
  • Marsa Dubai - 1202;
  • Business Bay - 1148.

How can an investor obtain a UAE resident visa when buying a property

Investors can obtain a UAE residence visa when buying real estate for three or five years. The validity of the visa depends on the value of the purchased residential or commercial property:

  • visa for three years - when buying an object worth AED 750,000, or $ 204,000;
  • visa for five years - from AED 2,000,000, or $ 544,500.

The investor can choose a ready-made object or real estate under construction in Dubai from an accredited developer. Applicants can also get a mortgage if the down payment is more than 50%.

Examples of investment properties in Dubai

Residence permit in the UAE for investment: real estate in Dubai

Examples of real estate to buy for a UAE residency visa

Residence permit in Dubai for the purchase of real estate: UAE residence visa

Examples of real estate to buy for a UAE residency visa

Examples of real estate to buy for a UAE residency visa

Investors with a residence visa in the UAE automatically become tax residents of the country. If a foreigner earns income in several countries, he can receive a tax certificate that will allow him to optimize taxes. Individuals - tax residents of the UAE - do not pay income tax.

Immigrant Invest is a licensed agent for government programs in the EU and the Caribbean. If you want to get a residence visa in the UAE for investment, please contact investment program experts for advice.

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Why Dubai Property Market increased by 1.5 times in the 2nd quarter of 2022