Dubai Housing: Inside the Boom

Thanks to its enviable location and visionary government, Dubai has long been a popular choice for expatriates and travellers. Year-round sunshine, generous tax allowances, five-star hospitality and endless leisure options have ensured plenty of demand for the city in terms of tourism and residency uptake. Free zones, business initiatives, geographical convenience and an ambitious entrepreneurial spirit have consistently appealed to multi-national corporations and international investors. But its ability to weather the storms of the past year is one of the key ways in which the city has really excelled on the world stage. The Dubai housing market is an excellent marker for how things are changing in the city and what the future holds for its development. So, what do the trends and status quo of the property arena have to teach us?

The Working from Home Effect

The idea of ‘working from home’ took on a whole new meaning in 2020. More and more people found themselves confined to quarters and reliant on online communications to keep things moving. Whilst many workplaces are now back up and running, a large number of organisations have opted, at least in the meantime, to take advantage of the benefits of remote working. Offering their staff a more blended working environment is great for employee engagement and can allow companies to reallocate resources to reduce costs. This new normal, along with the large increase in those opting for freelance contracting or self-employed consulting, means that more and more people are continuing to work from home. For the Dubai housing market this means a jump in those looking for villas or spacious apartments to rent thanks to an increased demand for larger living spaces, waterfront communities, convenient access to recreational amenities and private outdoor spaces.

The Government Effect

In 2021 the UAE will turn 50, making it a relatively young nation in the eyes of the world. But the UAE, and particularly Dubai, have consistently overcome their youthful age in terms of ambition, innovation and drive. The government is committed to pioneering new initiatives and championing progress at an unprecedented rate. Current leaders have built on the invaluable foresight of its founding father Zayed bin Sultan Al Nahyan to cultivate an environment that attracts international assets, resources and talent in order to bolster the nation in an inclusive manner. Their collective support for GDP diversification, infrastructure stability and economic growth have produced exceptional results both before and during the pandemic. In addition, a series of new proposals and legal updates have been implemented lately that significantly enhance the opportunity for individuals and businesses to make Dubai their home. Immigration changes including the remote working visa, golden visa and cultural visa have broadened the opportunities for expatriate individuals to move in-country. Steps such as reforming the commercial companies’ law and the annulment of the requirement for some onshore companies to have an Emirati shareholder have significantly increased the stream of foreign direct investment. This means that there is a consistent demand for residential and commercial housing from in-coming individuals and companies.

The International Perception Effect

From its encouraging economic stimulus proposals to its comprehensive vaccination campaign, Dubai and the UAE, has been seen to excel by the wider international community during one of the most challenge periods in modern history. In Dubai, swift action and government support have transformed the city’s ability to negate the impact of the pandemic, offering an open, functioning society in which people can work, meet, relax, shop, dine and entertain together. This has meant that the city has become even more popular for international property investors. In recent months we have seen palatial mansions sell on the Palm for hundreds of millions of dirhams and luxury brand residences sell out in record-time. Dubai continues to host some of the world’s highest property development rates with new residential and commercial projects being announced and completed almost daily. This upward trend signifies a collective assumption of resilience and stability that has been backed up by demonstrative evidence. Dubai and the UAE have proven themselves capable across the board, so the international demand for property and the sunny lifestyle is unlikely to lessen any time soon.

At EER we work with the most trusted agents to ensure that we have the most up-to-date information and can offer expert advice on buying or renting in the UAE. If you are looking into relocation and want to find out more about housing, get in touch today on 971 4 4211819 or info@eerme.com