Property prices in Dubai rose 2.5 per cent in April recording the largest single-month increase since March 2014 as the economy recovers from the coronavirus pandemic-driven slowdown, according to a new report.
The average property price in the emirate climbed to Dh895 ($244) per square foot last month from Dh873 per square foot recorded in March, the Property Monitor monthly market report said.
“Since the end of 2020, prices have steadily recovered to record gains of 9.5 per cent in the last six months,” the report said. “However, this strong performance is not uniform across all communities, with some areas still displaying price weakness.”
The lifestyle, safety and business-friendly environment are key pull factors
The strong double-digit increase recorded in some communities is likely to slow in momentum “as the recovery switches to a more sustainable pace across Dubai as a whole”, according to the report.
Property prices in the UAE are expected to stabilise in 2021 as the economy bounces back from pandemic headwinds, driven by government initiatives to spur growth.
New programmes such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme to attract foreign professionals to the UAE are also expected to support the local real estate market.
Dubai’s total transaction volumes in April stood at 4,879 deals, recording a year-on-year increase of 167.4 per cent and a 6 per cent jump on a monthly basis.
“Continuing the recent trend, there was a good volume of transactions in the high value segment of properties worth over Dh10 million. In all, 90 transactions were recorded for this segment, representing a month-on-month growth of 6.7 per cent,” the report said.
Some 81 villa transactions above Dh10m have been recorded on Palm Jumeirah so far this year, compared to 54 across the whole of 2020.
Dubai also recorded 1,926 off-plan transactions in April, up 13.9 per cent on a monthly basis and 46.5 per cent year-on-year.
“Betterhomes recorded the highest number of sales transactions on record for the month of April, despite it coinciding with the beginning of Ramadan,” Richard Waind, group managing director of brokerage Betterhomes, said.
“The extreme low interest rate environment and mortgage availability continues to drive healthy domestic end-user activity, and investors are returning with confidence, buoyed by recent capital gains.”
Wealthy Europeans clients are also buying the property in the UAE, he said.
“The lifestyle, safety and business-friendly environment are key pull factors and we think the post-Covid tax bill in many countries will act as a key push factor.”
Killing of Qassem Suleimani
Summer special
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
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
Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
