2022 Real Estate Trends in Dubai

What trends in the real estate market should we be watching in the world’s premier real estate markets? After a 2019 that saw the luxury real estate market asking where all the buyers went and a global pandemic in 2020, there are some trends in this segment we’ll need to look out for as we enter a new year. Let’s have a closer look.

Real Estate Prices

In many cities, luxury properties were built at a rapid pace when prices were inflated, like New York, Vancouver or London. Now, these cities are experiencing affordability issues as even more luxury construction comes into the mix. 

As real estate prices are falling and interest rates are low, investors are looking to diversify their portfolios; some real estate investments do not provide the same attractive returns as they once did. Analysts, such as Bartlett School of Real Estate at University College London chair Yolande Barnes, claims that “[w]e reached the end of an era of capital value growth.” Another property market analyst in Britain, Neal Hudson, claims that property is not as safe of an investment as it was in the past. 

uae real estate market overview

Population Trends are Leading to Market Segments

As the global population’s dynamics are changing, the future will see a new sector emerging in advanced countries: a new type of dwelling for older people as those countries’ people age. According to The Financial Times, “[t]he new model of retirement assumes older residents will live alongside everyone else, often in cities, and will focus on keeping up relationships with their neighbours.” 

But specific residential real estate segments are not limited to old age. As we mentioned before when discussing real estate prices, affordable housing will emerge as a segment in 2022 and beyond. Another example could be city flats for young professionals that could potentially go without car parks or full kitchens.

Following the COVID-19 pandemic, people also realised that they no longer needed to rely so heavily on city living; remote working grew and many people chose to either to move out of cities or even abroad. 

Emerging Markets 

With emerging markets continuing to grow in strength, one of the areas that will see increased competition from their presence is in the acquisition of real estate in up and coming cities that offer attractive and flexible possibilities for foreigners. PriceWaterhouseCoopers (PwC) noted that “[a] recent survey by Preqin showed that 54% of all sovereign wealth funds (SWFs) invest in real estate, with most SWFs from the Middle East and North Africa and Asia.” 

The same survey acknowledged that 57% of SWFs preferred investments in core real estate, making them even-more cutthroat competitors in significant markets like London and New York.

Property Tech

Another one of the UAE real estate market trends we’ll see in 2020 is the rise of proptech, or property technology. While brick-and-mortar real estate agencies managed to get through the 2010s, Warburg Realty president Clelia Warburg Peters claims that “...proptech will follow a similar pattern to fintech over the next decade, and that it will spread beyond real estate sales to construction, property management and leasing.” Among the startups flourishing is the use of blockchain technology.

uae real estate market forecast 

Blockchain in the Sector

One is through tokenisation that allows property owners to issue tokens that represent a number of shares in an asset, in this case, the property in question. Investors can purchase these tokens and gain exposure to the appreciation. And Dubai is on the forefront of blockchain technology and virtual assets, helping to provide investors and residents with even more opportunities for maximising their investments. 

Real Estate Investment Dubai 

Our team of real estate investment experts at Europe Emirates Group is at your disposal to help you make your next real estate investment in Dubai and more than 60 other jurisdictions around the world. Don’t hesitate to get in touch with our team today to begin the process. 

Written by
Adrian Oton
Adrian Oton
CEO, Europe Emirates Group

Luxury and Lifestyle
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