We have analyzed the Dubai real estate market:
- It has shown rapid growth since the beginning of this year, with average apartment prices up 8.5% and villa prices up 13%; October this year accounted for more than 72.5% of transactions compared to October last year;
- The price growth was boosted by a 133.5% increase in off-plan sales in the primary market and 29.4% in the secondary market following the emigration of Russian businessmen to Dubai due to the announced mobilization;
- According to the UBS Global Real Estate Bubble Index 2022, the Dubai real estate market is currently considered fairly valued. Moreover, for the first time after seven years of decline, the Dubai real estate market is showing a recovery - only now the market has reached 2019 figures and is still 25% below the peak of the second quarter of 2014;
- The Dubai market leads the world's top 25 luxury real estate markets, according to a Knight Frank report. Prices are expected to rise 13.5% in 2023.And we concluded that Dubai's real estate market is just beginning to accelerate and will continue to grow in 2022 - that's why we've launched the real estate destination now. We gave our clients two participation options:
- The classic option of buying/renting a property of interest. You contact our support and we find you a property based on your request;
- A joint transaction option with the purchase of an investment lot. You buy a lot (a part of the object) on our platform in a joint transaction with our other clients in our carefully selected properties. The main advantage of this investment option is that you jointly own several unique properties with a lower entry threshold than buying one whole property for little money.
We calculated it all out and achieved a 71% return on the investment lot option (valid through January 15):
- We, using interest-free mortgage leverage from the developer, purchase with our clients a townhouse in the Damac Lagoons - Ibitza project at 2022 prices for 42% of the full value of the property;
- We wait 9 months, sell for full price and have ~71% yield.