Yousef Al Arabi (Dubai)
Property demand in the local market is concentrated on spacious residential apartments ranging in size from 160 to 210 square meters, consisting of two to three bedrooms, according to officials and experts in the sector participating in the Cityscape Global 2022 exhibition, which has its activities from launched. yesterday, and who indicated that real estate companies are offering projects of this kind to keep up with demand.
They confirmed to Al-Ittihad that the demand for residential villas is currently concentrated on those consisting of four to five bedrooms, with areas ranging from 450 to 550 square meters. They attributed this demand to the availability of these luxury products at reasonable prices and reasonable service charges, in addition to the lack of supply of luxury and ultra-luxury housing units. They advised to choose spaces suitable for actual use so that the rental price would be high and in line with the requirements of tenants in the market.
PNC Menon, chairman and founder of the Sobha Group of Companies, told Al-Ittihad that the United Arab Emirates, as one of the preferred economic destinations for investors and projects, has stimulating policies for investment and high-quality infrastructure, and the country has been able to establish its position as a center for real estate and luxury facilities and luxury, thus attracting more wealthy investors year after year.
He said: The strategic geographical location of the country has played an important role in attracting more projects and companies from all over the world and establishing their headquarters in the country, for easy access to the regions of the Middle East, which in turn has strengthened its position as a leading financial center for the development and expansion of projects, and encouraging high net worth individuals to invest in the real estate sector in the country. He explained that the UAE offers many advantages that attract investment, especially the diversity of luxury homes in the country, as the UAE has a variety of luxury real estate options, including a wide range of luxury villas and apartments equipped with all services and amenities, and branded residences.
He said: The UAE is an ideal center for various types of investment as it is full of opportunities for various projects and policies that stimulate investment such as tax exemption policies. These factors have led to the acceleration of the growth of all sectors in the country, including the real estate sector. He added: In the post-pandemic period, the demand for luxury property in Dubai has increased, due to the influx of millionaires to live in the emirate.
He added that many luxury and innovative real estate projects have been launched to keep pace with the growing market demand for luxury properties and property from investors and homeowners. He attributes the growing demand in the luxury real estate market to several factors, including the effectiveness of the country’s strategies to confront the pandemic, the possibility of obtaining various and flexible visa options, in addition to the full ownership of projects by foreigners. He expected the luxury residential sector in Dubai to see remarkable growth during the last quarter of 2022. He said: Since the beginning of this year, demand for luxury apartments and villas in Dubai has increased as investors, high-net-worth individuals and businessmen look to buy or relocate to various properties in the emirate. According to the latest REIDIN report, the value of residential units in Abu Dhabi has increased by 8.3% since last year. He explained that this increase includes apartments which include an increase in prices by 11.6% and villas by 1%.
Resale and rental
In turn, Dr. Tayseer Al-Saati, executive partner at Luxpetat Sotheby’s International Realty, said: The real estate demand is currently concentrated on residential apartments ranging in size from 160 to 210 square meters or apartments consisting of two to three bedrooms, and in terms of villas, the demand concentrated on those consisting of four to five bedrooms, with surfaces ranging from 450 to 550 square meters, because their prices are reasonable and there is a possibility of easy resale.
He explained that the real estate market cycle started its upward trend in the UAE in mid-2020, when we saw a significant and noticeable improvement in some residential complexes that differ according to the region and the supply and demand therein. high demand from pre-owned and new investors from major markets, and we expect demand to remain strong over the next three years.
He said that in relation to the average real estate sector, the market is expected to see a slight correction of up to 10% during the next two years, and there are promising opportunities. He pointed out that the real estate market today is linked to banks and the interest rate, which affects average residential apartments, which have a price of about two million, so we will see a correction in this category, because supply still exceeds demand, unlike luxury property.