Property investors from the United Kingdom, Italy, and France dominated the top-10 list of foreign investors in Dubai in the first quarter, as the secondary market dominated the emirate’s real estate sector.
With a total of 20,539 sales transactions valued at Dh55.5 billion, the emirate’s rising real estate market had its highest quarter since 2010.
During the quarter, Indian and Pakistani investors made considerable investments in Dubai real estate, which also saw a major increase in Canadian investors and buyers. The other three nations in the top ten list were Russians, Lebanese, and Chinese investors.
Secondary market shines
According to official figures, Zoom Property Insights said the secondary market dominated the real estate sector, accounting for about 58 percent of total sales transactions, with the primary market accounting for the remaining 42 percent of sales.
According to the most recent figures, the Dubai real estate market had its second-highest ever April in terms of transactions. The secondary market accounted for 60% of the transactions, while the off-plan market accounted for 40%. After a record-breaking March, this represents a 46 percent increase in volume and a 67 percent gain in value year over year.
The upward trend to continue
According to data from the Dubai Land Department’s open data platform, there were 7,009 sales transactions worth Dh18.3 billion in April. It was also the second-highest April in terms of sales volume and value, behind only April 2009. Arabian Ranches-3 for off-plan and Dubai Hills Estate for the secondary market were among the top regions for villa and townhouse sales in April.
Due to visa liberalization and economic stability, the market is likely to continue its upward trajectory, with more foreign investors flowing into the market. According to Zoom Property Insights, the shifting landscape of Dubai labor law and the abundance of entrepreneurship options are also drawing a large number of investors.
Ata Shobeiry, CEO of Zoom Property, attributes the recent strong performance of the property market to foreign investors.
“The rising demand, property prices, and ROI can be majorly accredited to the influx of overseas investors. Expo 2020 facilitated the visit of many first-time investors, who ultimately decided the market is worth investing in. I believe the recent announcement of the new green residence visa and broadening eligibility criteria for the golden visa will provide more opportunities for foreign investors, resulting in an even better performance in subsequent quarters,” said Shobeiry.
European investors dominate
During the first quarter, European investors continued to dominate the market, with the United Kingdom, Italy, and France topping the list of top nations investing in Dubai. In comparison to Q1 2021, Canadian buyers jumped by 116% in Q1 2022. According to Zoom Property Insights, investors from the subcontinent, India, and Pakistan, rated second and eighth respectively, also contributed to the market’s outstanding performance.
The number of Russian investors in Dubai property has surged by more than 65 percent, putting the country in fifth place among the top investing nations. Lebanon and China are the other two countries that invested heavily in the Dubai property market in the first quarter of 2022.
Foreign investors from other regions are also expected to enter the market, according to Zoom Property Insights, as it continues to perform well. Due to rising prices and demand, experts anticipate that 2022 will end on a higher note.