Dubai’s soaring population is leading to an increase in property rents making the real estate market a huge centre of investment. The urban planners proclaim that the construction of residential buildings by new communities is observed on the City’s edge. This extension of smaller housing is switching rental dwellers into buyers.
There will be more residential high-rise buildings in Dubai because of the expected increase in the population, from 3.6 million to 5.8 million by 2040. In turn, Dubai is going to be a hub for real estate investment. There will be more demand for skyscrapers leading to the city’s real estate success.
According to CBRE Consultancy’ report, an annual increase of 17% is observed in the average price of Dubai’ residential properties.
Increase in Dubai’s Skyscrapers
Dubai is transforming into a home of skyscrapers and is likely to see a surge in pressure put on renters in the coming three years. The chief executive of a real estate company; Allsopp Real Estate, Lewis Allsopp affirmed the climb in the rental prices because of the supply shortage.
Nonetheless, this surge will be reprised by low-interest rate loans provided to renters for a few years. That will cut down repayments of property loans and the prices will continue to grow.
Last week, Mudon Al Ranim was initiated by Dubai’s real estate sector. It will add 182 residential houses, ending the goal of the Mudon Master Development Plan. Thus, the rise in townhouses is advantageous for Dubai’s real estate sector as tenants prefer to stay longer for a decade and even after retirement.
Hence, altering the standard of living as people are shifting towards demanded infrastructure to experience the vibrancy of the city. This means seeking more high-rise buildings that offer expanded rooms with access to better educational institutions and sports centres.
Demand of Silver Economy
The silver economy community is seeking relatively smaller residential apartments to meet the demands of the 21st century. This is to cater the demand of the growing population as of the unprecedented entrance of 3.5 million migrants into the city.
The number of enrolment in the City’s schools has swelled up with people being placed on waiting lists. Therefore, imbalance discerned in the demand and supply of Dubai’s real estate sector is pressurizing lower- and-middle-class families to cater to their needs for accommodation.
Several communities will emerge as a result of higher rent prices and a growing population. Establishing urban centers in speculative areas in the next decades. This will be an advantage for real estate investors to build skyscrapers with attractive costs, offering extensive varieties of properties.
