Dubai’s real estate market backed by strong buyer appetite

What’s your outlook for the property sector in 2022?
Based on trends and developments in 2021, we saw real estate property transactions in Dubai touch a staggering Dhs300bn. This coupled with strong sales in January and February portend a positive outlook for the year.

What are some of the factors driving this growth?
The Dubai government has done a great job of getting the city back up and running as quickly as possible after the onset of Covid-19. The vaccination roll out was also effective and successful. This brought new businesses and a new wave of expats to Dubai, looking to stay here for the long term. Expo 2020 Dubai has also played a great role in the sector’s recovery, attracting people from all over the world and introducing them to Dubai and its wonderful offerings.

Going into 2022, we’ve observed that buyer appetite is still strong. Being one of the highest performing economies in the world, coupled with high capital appreciation and gross rental yields of 5-9 per cent, Dubai is the ideal place to invest in property right now.

A few other attractive incentives for buyers and investors include low interest mortgages and residential visa opportunities. We’ve noted that investors are moving toward higher quality and more sustainable properties, even sacrificing immediate return on investment to capitalise on longer term yields. There are young professionals who come here on holiday and end up staying for the safety, opportunities and lifestyle that Dubai offers.

Which areas in Dubai are most preferred by buyers or renters?
Towards end of 2020 and through the first half of 2021, the market saw a large number of sales and investments in luxury properties and gated villa communities with high quality facilities. The majority of people already living in Dubai sought to move from apartments to villas due to reasons such as working from home or adopting pets during the lockdown – these often require extra room and garden space. These factors contributed to rising demand in Palm Jumeirah, Dubai Marina, Dubai Hills Estate and Downtown Dubai.

We expect to see the upcoming Emaar Beachfront to join the thriving luxury communities of Dubai in 2022. An island within the city, the community provides private beach access and beautiful views of the Gulf. There is already an increase in interest for leasing and end users. Following the footsteps of Downtown Dubai, we are also expecting Dubai Creek Harbour – which is slightly more affordable – to do well, with many retail and hospitality developments in the works already.

Tell us about your company in brief.
D&B Properties has developed and expanded from an agency exclusively selling off-plan to a multicultural firm with several successful divisions: D&B Properties, Real Estate Asset Leaders, Real Estate Commercial Experts, D&B Valuation and Be Our Guest Holiday Homes. In August 2021, we were presented with Bayut’s ‘Agency of the Month’ award. I was honoured to receive RERA’s ‘Real Estate Brokers Award – 4 Star Rank’, which is the highest rank presented by the agency. We have strong collaborations with leading developers, such as Emaar, Nakheel, Dubai Properties, Damac, Sobha, Aldar and RAK Properties, as well as listing platforms such as houza, Bayut, Property Finder and Yalla Deals. We have more than 170 staffers who hail from 32 nationalities. We’ve also touched Dhs5bn in transactions so far.

How will D&B Properties further leverage the growth the market is witnessing?
It always comes back to the client. We plan to remain focused on continuing to build our relationship with clients and investors through trust and transparency. We aim to further work with the best developers and developments that are reputable. Our team is highly trained, and are always ready to assist residents and newcomers to find their dream home.

Tell us about your decision to launch Real Estate Asset Leaders.
This division was born purely from the relationships we’ve built with our clientele. Most often the investors we work with are based overseas, so once we provide our expertise to help them purchase a property, their next question is: ‘do your services extend to managing our new asset?’
With trust and transparency being key factors in our dealings, we now provide our clients with an ‘A-Z’ service list, ranging from the systematic upkeep of their property and maximising revenue through rentals, to analysing market trends and handling government proceedings. Our services include property, financial, lease and tenant, and facility management, allowing the investor to rest assured that their property is under great care and yielding income.

Short term rentals are becoming a popular option. What are some of the opportunities and challenges faced in this segment, and how are you serving this market?
Short term rentals are a hidden gem in the property market right now, both for investors as well as renters. Our analysis has revealed properties such as short term rentals and holiday homes receive an extra 20 per cent rental income compared to traditional residential properties. However, people are cautious of entering this segment because of the perceived risk. As this is still a new industry, investors must proceed with caution, ensuring the real estate agency handles legal proceedings if needed as per government regulations.

Be Our Guest Holiday Homes is an integrated division under D&B Properties and an officially licensed operator with Dubai’s Department of Economic Development and Department of Tourism and Commerce Marketing (DTCM). We serve homeowners and holidaymakers with short-term rentals. Our properties are ideal for people with part-time or contract-based jobs, longer vacation days, or for those seeking to experience the city before moving here. We ensure our investors’ property is registered with DTCM, furnished, marketed and maintained with precision. Our guests are provided with concierge services, ranging from airport pick-up and drop-offs to advice on living in Dubai.

What are some of your tips for people looking to buy property in Dubai?
Find an agent you can trust and who is well informed on market trends and regulations. An experienced agent will be well-versed with established and reputable development portfolios and recommend the right product for your needs, ensuring you get a home and not just a house.