UAE Property Market Trends

The UAE property market has gone through a significant evolution over the course of the past two decades. However, public perception and media coverage have not necessarily always kept up with the current trends in the market, often mischaracterized by the patterns present a decade or more ago, when Dubai’s market truly began to surge.

In years past, developers used all manner of striking and even outlandish marketing ploys to incentivize investments in the region. However, this is no longer the case, and the UAE property market has undergone decisive changes that set it distinctly apart from what it was even a few years ago. The days of eager investors taking unstable deals offered by developers without considering the risk are largely in the past.

It is important for investors to bear in mind that the UAE is less than 50 years old, making it one of the youngest nations on earth. This means that the real estate market, too, is incredibly young, especially where expats come into play.

Today’s market is far more driven by end users and long-term investors than in years past. There are also far more mortgaged purchases than cash purchases. Because of the high number of expats present in the market, international economic trends tend to influence the UAE to a large degree. That said, the UAE’s market diversification helps to insulate it from any one factor dictating the trajectory of its growth, such as the historically low price of oil.

Large sectors of Dubai are unaffordable by most standards. However, many places within both the city and the UAE at large are far more affordable for a wide variety of buyers. In addition, prices are currently falling, increasing affordability in many locations. This includes the price of rentals, leaving open more possibilities for both investors and renters alike. These rate drops are true of both emergent and established communities, too, meaning they have not been limited to any one sector.

By far, the best yields are to be found in emergent communities over established ones. The latter typically have higher pricing and, therefore, less profitability, while there is far more variety in newer projects.

All things considered, the UAE market is growing and shows strong signs of continued stable development.

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