Some investors from the west have a skeptical notion that Dubai’s real estate market is currently inflated and will see a correction in due course. However, the data in front of us tells us a completely different story. For instance, the housing market in states is majorly driven by mortgage buyers and secondary strongholds that commit a direct relation with the increased cost of borrowing. However, in Dubai, A growing number of wealthy buyers are entering the Dubai property market with cash purchases as financing is getting more expensive due to rising interest rates. About 81% of villas and apartments in the last quarter were cash deals and 70% same time last year.
According to recently released data by Dubai Land Department Dubai recorded transactions worth AED 1.9 million on Monday alone. 468 sales transactions worth AED1.55 billion, in addition to 92 mortgage deals of AED325.87 million, and 22 gift deals amounting to AED58.33 million on Tuesday.
The sales included 420 villas and apartments worth AED1.14 billion, and 48 land plots worth AED409.18 million, while mortgages included 66 villas and apartments worth AED109.06 million and 26 land plots valued at AED216.8 million. This data is a clear indicator of confidence investors from across the globe put in Dubai’s real estate market. In our personal opinion, we feel that Dubai being just a 20-year-old market has not yet reached half its potential and there is a long way to go.