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How is the Dubai real estate market different from other emerging markets?

Introduction

Investors from developing countries, as opposed to investors from more established western markets, often inquire as to why the Dubai real estate market draws such a high level of interest from foreign by Land and finished property transactions totalled Dh151 billion in the first 11 months of 2013, according to data from the Dubai Land Department, representing a more than 30% increase in value over the same period in 2012.

In the month of March this year, prices throughout the city rose by 1.3 percent. This is the first time we have seen a year-on-year price rise since early 2015.

Information about global investment

While Dubai continues to attract large amounts of investment capital from emerging markets, purchases by more “institutional investors” such as listed property trusts, real estate investment trusts (REITs), insurance companies, and insurance funds, which dominate the real estate markets in more mature western economies, have been far fewer in the past few years.

According to data compiled by Jones Lang LaSalle, global investment in completed commercial real estate totalled more than $360 billion (Dh1.3 trillion) in the first nine months of 2013. The total number of transactions for the year is expected to reach between $500 and 520 billion, making 2013 the highest number of transactions since before the financial crisis in 2008.

Dubai’s market is a great place to shop.

When it comes to individual purchasers from developing countries, Dubai real estate is much more appealing than institutional buyers from more developed regions. The answer may be found in part in the nature of the market and interest in the psychological makeup of investors.

When compared to other markets across the world, the Dubai market is still young and immature, with land accounting for about 70% of total investment in 2018. In this industry, local developers and private investors from developing countries, who tend to be more risk-averse, are more interested than other investors.

As the Dubai market develops and becomes more well-regulated, it will begin to draw the attention of institutional investors from more developed markets across the world. Because of their aversion to risk, investors from developing countries will continue to dominate the need for the foreseeable future, and these investors will control the market.

This tendency has the effect that the market is likely to be highly volatile and susceptible to more significant fluctuations in value than more stable mature markets in the foreseeable future.

Conclusion

Being one of the most valuable places on earth, Dubai’s real estate becomes one of the most beautiful things in this pandemic situation. The price of Dubai real estate is always high, just for this pandemic in goes down and it will come back with a bang after this pandemic. You can see a significant percentage of high-profile people lives in Dubai, because of its highly VIP structure, and this thing makes Dubai different from any other country in the World.

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