Dubai Real Estate News For Investors

Dubai’s Real Estate Evolution: Analyzing Mortgage Trends and Expo Impact

October 04, 2023 Alessandro de Rubertis Season 1 Episode 156
Dubai’s Real Estate Evolution: Analyzing Mortgage Trends and Expo Impact
Dubai Real Estate News For Investors
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Dubai Real Estate News For Investors
Dubai’s Real Estate Evolution: Analyzing Mortgage Trends and Expo Impact
Oct 04, 2023 Season 1 Episode 156
Alessandro de Rubertis

Book your free consultation here https://alessandroderubertis.com/

The global context of real estate:

Real Estate is the world largest asset class, worth over $326.5 trillion globally (3 times larger than the global stock market) and 80% of this wealth is contributed from residential real estate.

Impact of hosting Expo on real estate price:

Did you know that the largest price increase takes place on the 5th year post event? (check the stats below)

1998 – Lisbon, Portugal  +60%

2000 -Hannover, Germany +40%

2015 – Milan, Italy +40%

2021 – Dubai ?????

How to overcome real estate depreciation in Dubai:

Rate of depreciation depends on the asset class as well as the pace of innovation around the space 

Did you know that 44% of dubai residential supply is older than 10 years??

If we consider the following:

  1. “Recommended minimum design life” of building, as per The Dubai building code 2021, to be 50 years. 

2. Rental increase will be connected to the performance of each individual building (level of services and asset management) rather than sub areas, as per Dubai propose rental index (nov 2022).

then, we can see many investment opportunities in those “old” Dubai buildings located in key locations where we can buy cheap, renovate and rent/resell expensive!

Mortgage vs Cash transactions in Dubai Since 2018:

2018 – 41.2% vs 58.8%

2019 – 31.2% vs 68.8%

2020 – 36.7% vs 63.3%

2021 – 32% vs 68%

Statistics may support that Dubai attracts a greater portion of HNWI foreign investors and may indicate that cash purchases have remained majority despite low-interest rate mortgage.

👉 Book your free consultation on www.alessandroderubertis.com

Drop me an email at info@alessandroderubertis.com

Show Notes

Book your free consultation here https://alessandroderubertis.com/

The global context of real estate:

Real Estate is the world largest asset class, worth over $326.5 trillion globally (3 times larger than the global stock market) and 80% of this wealth is contributed from residential real estate.

Impact of hosting Expo on real estate price:

Did you know that the largest price increase takes place on the 5th year post event? (check the stats below)

1998 – Lisbon, Portugal  +60%

2000 -Hannover, Germany +40%

2015 – Milan, Italy +40%

2021 – Dubai ?????

How to overcome real estate depreciation in Dubai:

Rate of depreciation depends on the asset class as well as the pace of innovation around the space 

Did you know that 44% of dubai residential supply is older than 10 years??

If we consider the following:

  1. “Recommended minimum design life” of building, as per The Dubai building code 2021, to be 50 years. 

2. Rental increase will be connected to the performance of each individual building (level of services and asset management) rather than sub areas, as per Dubai propose rental index (nov 2022).

then, we can see many investment opportunities in those “old” Dubai buildings located in key locations where we can buy cheap, renovate and rent/resell expensive!

Mortgage vs Cash transactions in Dubai Since 2018:

2018 – 41.2% vs 58.8%

2019 – 31.2% vs 68.8%

2020 – 36.7% vs 63.3%

2021 – 32% vs 68%

Statistics may support that Dubai attracts a greater portion of HNWI foreign investors and may indicate that cash purchases have remained majority despite low-interest rate mortgage.

👉 Book your free consultation on www.alessandroderubertis.com

Drop me an email at info@alessandroderubertis.com