The United Arabian Emirates is a captivating federation of seven emirates with a first-class investment environment. The country’s cosmopolitan cities, headed by Dubai and Abu-Dhabi, and world-class infrastructure made it a fantastic option and prime investment destination. The rapidly developing market attracts investors from all over the world and offers advantageous conditions.
Factors Affecting Property Prices
The UAE is widely known for being a prosperous commercial and tourism hub of the Middle East, with much to recommend. The country is famous for numerous offers for potential buyers – from low taxes to many renters. Numerous factors contribute to the property market growth:
- Wide range of offers – from budget apartments to luxury residencies.
- Constant foreign investment inflow and business-friendly environment.
- Dynamic development of the tourism industry and launch of innovative projects.
- Simplified residence permit procedure and the ability to obtain it as a result of purchasing a property.
- Consistent policy of the UAE authorities to enhance the standard of living and attract foreign capital.
Over the last two decades, the United Arabian Emirates has been experiencing an increase in demand and buying activity from wealthy foreign businessmen. The growth is determined by a stable and diversified economy, representing a prime choice for investors who tend to save funds in a fast-changing world.
Best Emirates for Investment
The emirates of Dubai and Abu-Dhabi are believed to be the best areas to rent and purchase a home. The areas provide all the necessary conditions for wealthy investors, including a high standard of living and a favorable business climate.
Dubai has the most developed rental market compared to the other emirates. Investors seek to purchase apartments and studios for subsequent rental, investing in so-called off-plan projects (the apartments under construction or planned) to save money. One of such ambitious projects providing attractive prices currently under construction is Dubai Hills apartments and luxury homes. On the other hand, ready-to-move flats are significantly more costly, and their costs vary depending on the district.
Abu-Dhabi takes second place on the list of the most promising emirates and shows a steady increase in value. The city is proud of its strong economy, favorable tax regime, and world-class infrastructure. Therefore, it can be considered as a great alternative option. Foreign investors constantly explore options for purchasing Abu-Dhabi villas for sale, and its real estate market constitutes a significant part of the emirate’s economy.
Property Market Forecasts
According to real estate developers and analysts, property prices in Dubai are expected to continue growing in 2024. The key factor of the rapid and continuous growth over more than 20 years has been a high demand from buyers. Analysts at Reuters believe that average residential prices are projected to increase by 5-7% in Dubai, while in Abu-Dhabi, this rate will be 3-5%. As for the luxury housing segment, the prices will rise to 13,5%, considered the most significant increase among major world cities.
However, an inflection point is predicted in the second half of 2024, when potential buyers could face a turn in the curve. This point will predominantly affect the high-end luxury market, launching changes in this direction. Experts say that wealthy buyers plan to spend nearly $3 million on average on Abu-Dhabi property in 2024.