Why the Real Estate Market in the UAE is booming: Changing consumer preferences

With the advent of technology that allows us to view, tour, and buy homes with the press of a mouse. This shift will continue at unprecedented speeds.

Having recently relocated from the United States, we have witnessed this shift in a number of nations. And we can tell with confidence that the UAE is progressing at an unbelievable rate. It is supported by investors from all over the world and encouraged by the government.

And all of it is made even more intriguing by the fact. The fact is that the area is home to over 40 distinct nationalities, a variety unmatched anywhere else, and an equally exceptional economy

In the past, trade exhibitions, classified ads, word-of-mouth, dispersed brokers, and a demand for more trustworthy sources in the market were the key driving forces behind property purchases in the UAE.

In the UAE, a buyer’s home was not only one particular area in a place they owned. It was instead naturally mobile and categorically more nomadic in structure.

Real estate or property today is more than simply a handy investment or a nice way to break the mold. Since the epidemic, the UAE and, specifically, Abu Dhabi, have witnessed a significant increase in ownership rates driven by modern customers who are paving the way for a more forward-thinking real estate boom.

‘Long-term option’ is the UAE

A new generation of home hunters is eager to see new places. It considers living in the UAE permanently rather than just temporarily.

People are open to looking at homes with a variety of features. Such as distinctive outdoor areas, beachfront living, upscale lifestyles, and picturesque waterscapes.

Al Reem Island, Yas Island, Al Raha Beach, and Saadiyat Island were among the top options for Abu Dhabi residents looking to buy an apartment for investment or habitation in Q1 2023, according to our most recent Property Finder Market Watch report for that quarter.

However, for those looking for cheap luxury villas and townhouses, Yas Island, Saadiyat Island, Al Reef, Al Reem Island, and Khalifa City were top choices. Furthermore, as a result of the diversification of visa regulations and rising tourism, there is an infusion of foreign investors.

Different backgrounds bring with them a slew of fresh tastes and lifestyle options. This is evident in the more recent lifestyle patterns our exclusive data has captured.

We have observed a growing desire for environmentally friendly living options in Q1. As Masdar City became one of the most popular locations in Abu Dhabi.

For one-, two-, and three-bedroom apartments in Masdar City, the average asking prices in the first quarter of 2023 AED 745,000, AED 1.1 million, and AED 1.8 million, respectively. When comparing Q1 2023 to Q1 2022, the average asking price for flats also saw a significant increase of seven percent.

Studios, two-bedroom flats, and four-bedroom apartments were the main drivers of the upward trend. However, due to a spike in demand for two and three-bedroom villas, the average asking price for villas grew by 7% from Q1 2022.

Despite the price increase, this moment is special because the return on investments has been rising steadily. A more sophisticated consumer mindset maintains a positive view fueled by increased value and significant investments for the UAE’s future.

With so many possibilities available, now is the perfect time to invest for those with the means.