European investors have stopped investing in the domestic markets.
In 2022-2023:
the number of registered mortgages decreased by
20%
the amount of purchased real estate decreased by
15%
How did Dubai become
the most desirable Real Estate market for European investors? And why will it be too late to buy property there in 5 years?
Why:
low liquidity, fear of a repeat of 2008
20% price increase over the past 3 years
the mortgage rate exceeds CAP. Average SAR is 5%, mortgage is 7%.
The European real estate market has lost its positions over the past 5 years. If in 2019 it was ranked fourth in reliability and projected profitability for investors, in 2023 it is currently ranked 26th.
According to our forecasts, it will continue to decline further. We expect it to drop another 10-15 positions by 2026.
According to our forecasts, it will continue to decline further. We expect it to drop another 10-15 positions by 2026.
Analysis of AI AXE - first algorithm that analyzes Real Estate in 157 countries
Why do Europeans choose Dubai?
3 reasons:
Steady GDP growth and the exchange rate of the Dirham (currency of UAE) to the euro provide reliability.
1
Low taxes on property purchase and rental income - 0.5% purchase tax, 0% income tax.
2
The number of tourists reached a record high in 2022 - 20 million. The rental prices are increasing by 10% annually. This is the highest rate in the world, which is why European investors consider Dubai real estate as an asset for generating passive income during retirement. The number of EU citizens purchasing property in Dubai increased by 15% (575 properties purchased) in 2022.
3
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