Property prices in Dubai continued to rise in May, with transaction volumes also growing as the emirate's real estate market makes a strong rebound from the coronavirus-induced slowdown.
Average residential property prices increased by 10.9 per cent in the year to May 2022, with apartment prices rising 9.6 per cent and villa prices up 19.8 per cent, CBRE said in its latest Dubai market report.
Month on month, prices rose 0.4 per cent for apartments and 1.2 per cent for villas in May, the report said.
The total volume of transactions in the market reached 5,542 in May, up 33 per cent from a year earlier.
“Transaction activity in Dubai’s residential market continues to remain on a strong footing, with total transaction volumes in the year to date [until] May 2022 reaching 30,903, the highest total recorded since 2009,” said Taimur Khan, head of research for the Mena region at CBRE.
“Price growth has also remained robust, despite the rate of growth slowing marginally from a month earlier.”
Check apartment price rises and falls in the slide show below
Where were the highest price increases in Dubai?
The prime areas showed the most significant price growth in May amid strong demand and a supply shortage in the segment.
The market has been attracting high-net-worth individuals from around the world on the back of the UAE's strong economic rebound from the global pandemic-induced slowdown.
Allsopp & Allsopp recorded a 50 per cent decline in ultra-prime properties coming to the market when comparing May 2022 to May 2021, chief executive Lewis Allsopp told The National earlier this month.
While demand is increasing, supply has remained stagnant, he said.
“Most ultra-prime property owners are holding on to their properties unless there is a need to sell,” he said.
Palm Jumeirah apartments recorded a 4.2 per cent price rise, month on month, in May while villa prices on the man-made island increased 5 per cent. This follows similar rises in April.
Properties in Meydan City and Jumeirah Golf Estates also posted price rises last month.
In terms of the highest average sales rate per square foot, Downtown Dubai topped the list for the apartments segment at Dh2,045 while Palm Jumeirah led the villas segment, with prices at Dh3,207.
While average prices per square foot stood at Dh1,102 for apartments and at Dh1,307 for villas in May, they remain 25.9 per cent and 9.5 per cent lower, respectively, when compared to the highs witnessed in late 2014, CBRE said.
Inflationary pressures
Inflation in Dubai accelerated to an annual 4.6 per cent in April, from 1.1 per cent in December 2021. The UAE's consumer price index rose 2.5 per cent in 2021, according to official data.
Property consultancy Knight Frank said the level is “relatively tame compared to the rest of the world”.
The UAE Central Bank raised its interest rate by 50 basis points last month, in line with the US Federal Reserve board's decision to increase its key interest rate.
More rate increases are expected during the rest of this year, including one this week.
However, Knight Frank said it does not expect rate increases to affect the stability of the Dubai residential market.
During the first five months of 2022, mortgage buyers accounted for about 18 per cent of the residential market, by value of deals, compared to about 40 per cent last year and 52 per cent in 2007, it said in a report.
“Right now, the bulk of deals at the top end of the residential market are cash purchases, in large part due to the unrelenting influx of ultra-high net worth capital targeting Dubai’s most expensive homes,” it said.
“A persistent and intensifying wave of UHNWI capital from markets as varied as Monaco, Singapore, Hong Kong, Austria, Switzerland and even mainland China continues to zero in on the emirate’s residential real estate market.”
Looking ahead, while property prices are continuing to increase, they are unlikely to rise by 60 per cent again this year.
“It is unsustainable and unhealthy for the market, so price increases will undoubtedly be less vigorous,” Knight Frank said.
With price growth expected to hover at about 5 per cent to 7 per cent this year for Dubai's mainstream market and 12 per cent to 15 per cent for the prime properties, “residential property in the emirate is still an excellent inflation hedge”, the consultancy said.
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COMPANY%20PROFILE
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
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UAE currency: the story behind the money in your pockets
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
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Dubai World Cup draw
1. Gunnevera
2. Capezzano
3. North America
4. Audible
5. Seeking The Soul
6. Pavel
7. Gronkowski
8. Axelrod
9. New Trails
10. Yoshida
11. K T Brave
12. Thunder Snow
13. Dolkong
Sreesanth's India bowling career
Tests 27, Wickets 87, Average 37.59, Best 5-40
ODIs 53, Wickets 75, Average 33.44, Best 6-55
T20Is 10, Wickets 7, Average 41.14, Best 2-12
More on Yemen's civil war
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Monster Hunter: World
Capcom
PlayStation 4, Xbox One
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
EA Sports FC 24
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
AIDA%20RETURNS
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The Greatest Royal Rumble card as it stands
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight Championship AJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Chris Jericho
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v tba
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