Why Are Property Prices Increasing In Dubai?
The first four months of 2024 has seen a rise in the pricing of luxurious properties. Builders are going to launch even more projects to attract buyers and investors from other countries.
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Professionals in Dubai Housing are saying that the new launch properties will also be sold out because of the increasing demand. Let us see some reasons behind this-
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Huge Demand from Investors and Residents
After the Covid there is a high number of demand from both local and international buyers. The buyers include very rich people and foreign investors, which are contributing to the rise in property prices located in the prime areas of Dubai. People are getting attracted by Dubai's long-term residency programs such as the Golden Visa which allows them to live in Dubai for 5 to 10 years. Projects like Binghatti Phantom and Damac Elo 2 are good choices to get a residence visa.
Economic Growth and Population Increase
Dubai's population is predicted to grow in a few years, which will put builders working in Dubai to increase the supply of housing. The UAE’s economic growth, coupled with government initiatives to attract businesses and skilled workers, is also a big reason for the growth and rise of property prices in Dubai because of huge demands. The builders who are known for their world-class projects are launching extra luxurious properties to attract rich people around the world. The price of the properties are increasing at a double digit percentage also.
Continuous Development
Ongoing and planned developmental projects, such as the addition of the Dubai Metro Lines will increase the attractiveness of various locations in Dubai, further driving up property prices. Making of new properties in areas like Dubai Silicon Oasis and Dubai Creek Harbour are expected to benefit from increased transport links. The properties are normally built with more luxuries and modern equipments in Dubai. The new launches of properties from big builders like Aldar, Binghatti, Damac, Emaar, and more are now attracting more and more investors and celebrities from other countries.
Luxury Property Market
The costly property market, particularly in areas like Palm Jumeirah and Downtown Dubai, continues to see strong demand especially from celebrities. Developers are launching extra luxury projects, which normally get sold at higher pricing in these types of locations. One of the bollywood celebrities like Shah Rukh Khan also owns a grand house in Dubai which cost millions of dollars.
Government Roles and Investor-Friendly Environment
The UAE government is also supporting developers which includes favorable rules and a focus on technologies, providing a supportive environment for investment in luxurious properties. This is further improved by the introduction of programs aimed at attracting remote workers and expatriates, encouraging more people to buy new houses or live on rent. Dubai is becoming the new second home destination for the celebrities of India where actors and actresses are buying luxurious properties in Dubai. In 2024 also popular people from India are looking for a lavish house in Dubai.
Conclusion
The property price of Dubai is increasing because of reasons like increasing demand from foreigners. While the pace of price increases may slow down compared to the past few years, the combination of strong demand, economic growth, more developments, and supportive government rules is expected to keep property prices in Dubai on an upward trajectory.
