Home Prices Rise, Rent Still Cheaper: Dubai News – Business
Princeton, NJ / 360prwire / December 16 /
According to the CBRE group, an international real estate consultancy firm, the rise in property prices has been observed in Dubai. This is residential real estate: now investments villas in UAE to a foreigner will cost 4.4% more. Experts point out that this is the highest figure for the past 6 years. The CBRE Group also notes that there is a counterintuitive drop in rental prices for properties with such an increase in property prices, the average rental price per year has decreased by 2.7%.
Changes in the Dubai real estate market
The unstable economic situation in March 2020 affected the drop in demand for real estate, but the situation changed dramatically a year later. According to the news agency, positive changes have taken place in the Dubai property market. This is especially true for elite residential real estate: sales of these apartments have peaked, causing prices to rise. It’s strange, but the price growth trend has remained unchanged even in the summer, although it is usually during this period that the transactions are made with the best discount.
Housing market trends
CBRE reports that villas have become very popular today.
After the pandemic and quarantine restrictions, people are moving from apartments to private homes. And this, despite the rise in prices of this type of property. For comparison, apartment prices increased by 2.5% over the year, while the cost of villas increased by an average of 18%. CBRE also informs that the current price increase has not reached its highest historical level: the biggest increase in real estate prices was recorded in 2014, when the prices of villas increased by 30% and apartments of 20%.
During the pandemic, most foreigners left the territory of the UAE, but the UAE government authorities took action to combat the country’s economic situation. As a result, foreign investors started to return to Dubai.
Rental and commercial real estate prices
Interesting case: when real estate prices rise, the cost of rent drops rapidly. However, here the situation is twofold: apartment rents have fallen by 5.2%, but the cost of renting villas has increased by 15.5% and reached its historic maximum.
When it comes to commercial real estate, consultancy firm CBRE Group reports that the current demand for office rental has increased by 77.1% compared to a time when there were no quarantines or restrictions. On the other hand, rents have fallen by around 5%.
Help in choosing a property
If you are looking for an apartment for the most profitable investment, we recommend that you contact the professionals. Emirates.Estate will urgently select the most interesting offers for you at attractive prices. Specialists advise clients on issues related to renting real estate in Dubai, educate about developers, new communities and residential complexes, help with paperwork necessary to buy a house in UAE.
Start a new life – start looking for accommodation in Dubai!
The post Property prices are rising, rent is always cheaper: News from Dubai first appeared on 360PRWire.