The total value of ready freehold Dubai property will soar up to USD 272 billion by 2022

28.06.2016
Dubai’s freehold housing market capitalization increased by more than 1,600 percent in the past decade.

A new report by Reidin has graphically demonstrated the benefits of investing in Dubai property in a long term. In-depth analysis conducted by the agency experts showed that over the last ten years capitalization of the entire ready freehold Dubai’s real estate property market was 1,632 percent.

The report results, supplemented by historical data brought by the Unitas Consultancy as of 2006, showed that then the overall value of all ready freehold housing in Dubai totaled AED 28 billion (USD 7.6 billion). And today, in 2016, the cost of this valuable investment package in the form of ready-made houses and apartments in private (freehold) ownership totals to AED485 billion (USD 132 billion). Moreover, by 2022, according to some forecasts, this figure is about to grow up to AED 660 billion (USD 179.6 billion).

Moreover, this calculation took into account only the prospects of capitalization for the existing freehold Dubai housing, according to its forecasted value growth. But when taking into account also a significant number of housing units already being built or planned for construction in the city master communities, the figure looks quite astronomical — AED1 trillion (USD 272 billion) – that much all the ready freehold Dubai property units could cost in 2022, according to Unitas estimates.

Besides, the report also revealed that in recent years Dubai has annually invested and keeps investing significantly more of its budget into the city development than other countries, like the United States or United Kingdom. In 2016, Dubai authorities spent 35 per cent of the Emirate’s budget onto the city’s urban infrastructure development, which is ten times more than other developed countries did (the US spent only 8 per cent, the UK and Saudi Arabia — just 3 per cent of their budget each).

Unitas’ report states: “We opine that with debt levels having room to grow, and with rapidly rising population growth rates, it appears likely that although the growth rates of asset values may well be lower than what was achieved historically, there will be an expansion of both the values and the quantum of real estate assets and it is this prime pump along with infrastructure spending that will continue to underpin economic growth.”

Our new Investment Guide will help you estimate all the prospects of investing in Dubai’s real estate. Make the right choice now, before all the Brexit consequences come to the surface. 

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