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.
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.
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.
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 2 or 10 years. The validity of the visa depends on the value of the purchased residential or commercial property:
- visa for 2 years - when buying an object worth AED 750,000, or $ 204,000;
- visa for 10 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
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.
