Real Estate 2022 Archives

Dubai’s Real Estate Odyssey: Five Years of Triumph and Transformation

02/27/24 7:56 AM

As the sun sets on another vibrant day in Dubai, the city’s skyline—a testament to ambition and resilience—stands tall, mirroring the dreams of thousands who call this desert oasis home. The past five years have woven a rich tapestry of growth, challenges, and triumphs in the real estate market, each thread colored by the hopes and aspirations of investors and families alike. This is a tale of more than just buildings and transactions; it’s a story of a city continually rising from the sands, shaped by the ebb and flow of economic tides and the collective heartbeat of its people.

From the anticipatory buzz of Expo 2020 to the unforeseen global pause brought on by the pandemic, and through to the resilient rebound and strategic innovations that followed, Dubai’s real estate market has embarked on an emotional journey of adaptation and growth. Join us as we delve into this narrative, exploring how fluctuating trends, regulatory changes, and shifts in investor sentiment have sculpted the landscape of one of the world’s most dynamic cities. This is not just the history of a market; it’s the story of Dubai’s spirit, its unwavering drive to excel, and its undying promise of possibility.

As the sands of time shift, so does the landscape of Dubai’s real estate market, painting a picture of resilience, innovation, and transformation over the last five years. From the hopeful anticipation of Expo 2020 to navigating the uncharted waters of a global pandemic, the city has witnessed a journey of remarkable growth, challenges, and a steadfast commitment to progress.

2019-2020: Pre-Pandemic Growth and Expo 2020 Anticipation

The dawn of this period was marked by a palpable sense of optimism, fueled by the upcoming Expo 2020. The city buzzed with preparations, drawing investors’ eyes worldwide, eager to be part of Dubai’s next big leap. The luxury and off-plan segments, in particular, saw significant growth, with skyscrapers reaching towards the heavens and futuristic projects taking shape on the drawing boards of architects. However, as the world braced for the unforeseen storm of COVID-19, Dubai’s real estate market felt the immediate tremors. Travel restrictions and a global sense of uncertainty temporarily clouded the horizon, pausing the dreams and aspirations tied to the grand event of Expo 2020.

2021: Recovery and Resilience

Yet, like a phoenix rising from the ashes, Dubai’s real estate sector began to show signs of a robust recovery in 2021. The city’s adept handling of the pandemic, coupled with a gradual easing of travel bans, rekindled interest in the market. A notable shift in demand emerged, with more people seeking larger homes and properties that offered outdoor spaces—a reflection of a global reevaluation of lifestyle choices towards health and well-being. This year also heralded the green shoots of sustainability and the adoption of smart home technologies, aligning with a growing consciousness towards environmental stewardship and digital convenience.

2022-2023: Sustained Growth and Market Maturation

The subsequent years unfolded a narrative of sustained growth, underscored by the successful hosting of Expo 2020, albeit delayed. The event not only showcased Dubai’s indomitable spirit but also reinforced its global appeal, drawing back international investors with renewed vigor. The government’s strategic regulatory reforms further polished Dubai’s image as a transparent and secure real estate investment haven. These reforms aimed at enhancing market transparency and investor protection, laying the groundwork for a more mature and stable market environment.

Shifts in Investor Demographics

A fascinating subplot in this journey has been the diversification of investor demographics. European and Asian investors have increasingly joined the traditional Middle Eastern investor base, infusing new preferences and dynamics into the property market. This kaleidoscope of investor backgrounds has enriched the market, making it more dynamic and responsive to global trends and demands.

Also Read: The Dubai Real Estate Market: Navigating Through Evolving Trends

Technological Integration and the Rise of Sustainable Living

The crescendo of this five-year odyssey has been the harmonious blend of technology with sustainability. Developers are increasingly leaning into green building practices and smart technologies, driven by a demand for living spaces that are not only eco-friendly but equipped with the latest digital comforts. This trend towards sustainable living is not just a fad but a testament to Dubai’s vision of becoming a leading example of innovation and environmental responsibility in the real estate sector.

In reflecting on the past five years, it’s evident that Dubai’s real estate market is not just surviving; it’s thriving, evolving, and setting new benchmarks for the world to follow. Amidst fluctuating trends and global uncertainties, the city’s real estate landscape remains a beacon of opportunity and innovation, promising an even brighter future ahead.

The past five years have been a remarkable journey for Dubai’s real estate market, characterized by growth, adaptation, and maturation. Through the highs of pre-pandemic anticipation for Expo 2020 to the lows of global economic uncertainties, the market has demonstrated unparalleled resilience. It has not only weathered the storm but has emerged stronger, driven by strategic foresight, regulatory reforms, and a commitment to sustainability and innovation.

Dubai continues to cement its position as a leading global city, with its real estate market playing a pivotal role in this narrative. The evolution witnessed in this sector is a testament to the city’s dynamic nature and its ability to adapt and thrive amidst challenges. Looking forward, the horizon is bright for Dubai’s real estate market, promising exciting opportunities for investors, developers, and homebuyers alike.

As we stand on the brink of new possibilities, the journey of Dubai’s real estate market is far from over. Its vibrant landscape beckons investors to be a part of the next chapter of growth and innovation.

We invite you to explore the myriad investment opportunities within Dubai’s evolving real estate market. Join the conversation in the comments section below, share your insights, or pose questions about future trends and predictions for this dynamic sector. Together, let’s navigate the promising future of Dubai’s real estate market.

FAQs

Q1: How has the pandemic impacted Dubai’s real estate market?

A1: While the pandemic initially caused uncertainty, Dubai’s real estate market quickly rebounded, showing strong resilience and growth, particularly in demand for larger homes and sustainable living.

Q2: What makes Dubai an attractive destination for international investors?

A2: Dubai’s strategic location, tax-friendly policies, regulatory reforms aimed at transparency and investor protection, and commitment to sustainability and innovation make it an appealing choice for investors.

Q3: Are there opportunities for sustainable and smart home investments in Dubai?

A3: Absolutely. The trend towards sustainability and smart home technologies is strong, with developers increasingly focusing on eco-friendly practices and digital conveniences.

Q4: How can investors navigate the Dubai real estate market?

A4: Investors should stay informed about market trends, regulatory changes, and seek opportunities in areas with growth potential. Consulting with local real estate experts can also provide valuable insights.

Q5: What is the future outlook for Dubai’s real estate market?

A5: The future looks promising, with sustained growth driven by Dubai’s appeal to a broad investor base, ongoing innovations, and its status as a leading global city. The market is expected to offer exciting opportunities for both investors and homebuyers.

Brampton’s Housing Market in 2023: What you need to know

03/10/23 1:00 PM

Brampton has become one of the most expensive suburban communities in Ontario. And it’s only getting hotter. Experts think this won’t change anytime soon and predict that residential prices will continue to rise at an exponential rate. Investors are rejoicing at this news- but will things stay hot forever?

Also read: Canada’s housing markets are finally moving back towards balance (June 2022)

About Brampton.

According to the latest census, it is the third largest city in Ontario and ninth-largest municipality in all of Canada. With a population of just over 649,000 people – this small town has grown quickly from what was once nothing but farmland. And despite being considered a suburb of Toronto, its growth shows no signs of slowing down anytime soon.

After setting new benchmarks for five consecutive months, this continued trend was evident yet again in January 2022 when Brampton set another new benchmark – now home prices are soaring. It doesn’t stop there though; the average selling price of homes sold in Brampton reached $1,367,444 – a 41% increase from last year and making it one of the most expensive housing markets in Canada. One more thing worth mentioning is that this is six consecutive months where they’ve broken all-time home price records.

Graph showing average sale price curves for detached, semi-detached, townhouse-style condos and apartment style condos in Brampton between December 2020 and December 2021. (Source)

However, detached houses comprise a higher percentage of the housing market in Brampton in comparison with Metro Vancouver and Toronto. The distribution of properties in each city plays a significant part in the overall average of price of homes. Condos, with lower average prices, comprised 36 percent in the Greater Toronto’s real estate market however only 6% of Brampton’s residential market at the beginning of 2022.

Examining specific types of property in the month of January, 2022 detached houses have the highest year-over-year increase, rising 41.4 percent over last year, and 13.4 percent compared to the previous month. The average price for selling a detached house in Brampton is currently $1,652,088, which is a record. This means that the median cost of a detached house has increased by $484,020 in the past year and $1953,325 over the last month.

The gains in annual prices of other types of property were also significant. Semi-detached houses had a 40 percent increase in year-over-year value and a 10% increase per month in the average price, whereas condo townhouses experienced an 42.5 percentage increase from year to year, and an increase of 9 percent per month in the average price. Freehold townhouses saw an increase of 38% in price year-over-year, and an 11.4 percentage monthly increase and condo apartments lag behind , with a cost increase by 30% year-over-year.

In analyzing average prices for sold for January 2022, we can see that the average sold price for a semi-detached house located in Brampton was $1,230,275. Freehold townhouses costing $1,129,851, condominium townhouses priced at $873,098, and condos with a price of $622,579.

Semi-detached homes were the sole type of property in Brampton that saw a year-over-year rise in sales. Sales of semi-detached homes increased by four percent over the course of the year to the 124th sales of January in 2022. While detached home sales fell by 21% year-over year to 313 sales. Freehold townhouse sales fell by 30% over the course of the year to 74 sales. Condo townhouse sales dropped 27% over the course of the year at 53 transactions, and condominium apartment sales dropped 24% from year-to-year, up to 38 units.

The supply of homes is still the main topic in Brampton’s real estate market, as inventory continues to decrease this month. In January 2022, there were 832 listings January 2022. This is lower by 13% from 961 listings added for January 2021. The 255 active listings as of the end of January 2022 is the 31.6 percent decrease year-over-year. The inventory of Brampton’s market for housing has decreased to 0.6 months, which makes one of the smallest of the GTA. The average price sold for homes located in Brampton is 15% higher than the median price of listing due to the fact that the average number of days on the market decreased to six days.

With homes sold within an hour and at 15% more than the price of listing The month of January 2022 proved to be a progressively competitive market Brampton buyers continue to battle for a smaller number of homes.

Market Trends

Median List Price$999K
Median Selling Price$1.1M
Listing-to-Selling Ratio105.11%
Price Change (Month)+3.96%
Price Change (Year)-3.98%
Average Days on Market12

Market Report Summary for April 2023

Updated May 17, 2023

In April 2022, there were 7,940 total residential transactions recorded in Brampton. However, in April 2023, this figure decreased to 7,531 transactions. This represents a year-over-year reduction of 5.2%. In other words, the total number of residential transactions in Brampton in April 2023 was 5.2% lower than the same month in the previous year.
Brampton’s average home sold price has declined by 26% since the beginning of the year as the housing market slows down.
On average, the price of a detached home decreased 10% in the past year, costing about $1.18 million dollars now.
The average semi-detached home price decreased by 1% over the past year to $939,000.
The average price for freehold townhouses remained the same from last year to this one.
On average, condo townhouses prices have increased by 1% in the last year to reach around $705k.
The average price of a condo apartment increased by 7% year-over-year, totaling $567k.

How to Build Equity in Your Home

08/26/22 12:04 PM

One of the primary goals of home ownership should be the building of equity in your home. Equity is simply the difference between the current value of a property and the balance of all mortgage obligations.

For example, if you have a home that is valued at $375,000 (based on an appraisal or a Comparative Market Analysis) and a mortgage balance of $175,000, you have $200,000 ($375,000 -$175,000) equity in your home. As long as the market remains stable, this is like money in the bank. As your house value increases over time and mortgage payments you make reduces the level of your debt, your home equity increases.

Why Equity in a Home is Important?

Simply stated, the appreciation of equity in a home is one of the easiest and most successful paths to wealth that is available to you. To a large degree, it is almost painless—you make the mortgage payment that you would have to make anyhow and the balance is reduced. The value of the home, meanwhile, is rising. As a result, your nest egg should be growing. The quicker you find yourself at 100% equity—owning nothing on your home—the quicker the route to less financial stress and true wealth.

How to Build Additional Equity?

There are a number of ways to build additional equity in a home, some easier than others but all effective:

1) Higher initial down payment
The most obvious way to build additional equity is at the first opportunity—making a larger down payment at the time of purchase. This extra money is immediately “banked” in the home, making it much less tempting to spend.

2) Extra principal payments
Making extra payments of principal (or just adding money to your monthly payment designated to go to principal) has a double effect on your equity. First, every dollar you contribute reduces your debt by the same amount. Second, reduced debt means less interest paid, which means that each month more of your payment goes to principal and less goes to interest.

NOTE: Although most loans allow it, check with your lender to see if they accept extra payments of principal with no penalty.

3) Shorter mortgage term
The lower mortgage interest rates that we have seen recently means that for many buyers, they are able to either initially secure a mortgage with a shorter term or, if the are currently in a long term mortgage (such as 30 years) refinance and get a shorter term. Shorter mortgage terms mean that you will be paying down your principal much quicker and therefore gaining additional equity at a much faster rate.

4) Home improvements
When you improve the quality or size of your home, you also increase its value and thus your equity. Be aware, though, that although virtually all home improvement projects will bring some return, some are much more advantageous than others. For example, remodelling kitchens or bathrooms traditionally have brought a greater return than adding leisure amenities such as pools or whirlpools. To get the maximum equity enhancement, make certain that the kind of improvements you want to make will increase the home’s value appreciably.

5 Tips for Buying an Investment Property

03/8/22 1:30 PM

If you’re considering buying an investment property, there are several things to keep in mind before you commit to the purchase. The key to your success with the property will be researching and planning to know what factors will affect the house’s value and how much of your time and money you’ll need to put into it to maintain its value over time. Here are five essential things to consider before investing in a property. If any of these crucial things don’t make sense to you, or if you find them too complicated, be sure to talk with an expert who can help guide you through the process.

1. Risk in Real estate investing.

Real estate investing is a lower-risk option than other investments, such as stocks or cryptocurrencies. To assess the risks involved, it is essential to thoroughly research the property, the area, the appreciation over time, and future plans. You should also consider operating, mortgage, and maintenance costs when investing in property.

2. Your Financial Situation

Before you consider investing in property, It is essential to assess your financial situation. These investments are not cheap, so be prepared to invest substantial money upfront and over time if you have to mortgage. When determining your financial situation, consider your income to debt ratio. This could make a difference in whether you can use your existing funds for the investment or not. Consider how much cash you have available after the acquisition. This can help with closing costs and emergency fund requirements.

3. Property Management

Depending on the type and size of your property, you might need management services to maintain it operational after you have bought it. It is wise to hire a property manager to manage your rental property. They can find tenants, handle legalities, and maintain the property. This will take the burden off your shoulders and allow you to concentrate on other investments and personal ventures.

4. Property location

The “where” is much more important than “what” when investing in property. Property prices heavily depend on the location of the property. The property price in urban areas will always be higher than those in rural and suburban locations. The high cost of living in urban areas will result in higher long-term profits. Because of the ease of access to transportation and social factors, urban lifestyles are often more appealing to the masses. Once you have purchased the property, the property’s location will be determined by who your target audience is. If you plan to rent your property out to families, you might consider buying a property in Brampton and Mississauga, the best places to purchase real estate in Ontario.

5. The One Percent Rule

The real estate’s one percent rule states that the monthly rent should not be less than 1% of the property’s price. Your property rent should cover your monthly mortgage payments. This ensures that you don’t invest your income in the mortgage but rent the property. This is what will make renting a rental property worth the investment.

Why is Housing Supply So Low in Ontario?

03/1/22 5:39 PM

There are some reasons to be optimism given that housing starts increased dramatically in 2021 in the same year, and the efforts around the nation to tackle the shortage of housing are increasing. In spite of these encouraging signs, we remain convinced that the housing shortage in relation to the needs of the population will continue to exert upward pressure on rents and prices and lower the affordability of housing. There is still a lot to be done by policymakers to close the gap in housing.

The housing stock in Canada that is adjusted to population is the lowest among the G7.
Results differ by provinces within Canada and Canada, and Alberta, Manitoba and Ontario having the lowest numbers of homes per person compared the others provinces.
Ontario would require more than 650,000 homes to bring its dwellings-to- people to be equal to all of nation

It’s no secret that people who want to buy homes are struggling to find one they can afford. In fact, even people who qualify for loans may still struggle because there aren’t enough houses to choose from! With so few choices, bidding wars are inevitable, making things even more difficult for buyers. So why does the housing market have such little selection? There are a few different reasons Why is Housing Supply So Low in Ontario?

housing market canada — Source: Scotiabank

Too many studio and one-bedroom condos

When it comes time to purchase homes in Canada, most Canadians prefer townhouses, semis, and detached homes. They are large and can enjoy a front lawn and a backyard. Although condos do not offer additional outdoor space but they are larger to allow for families. But, the majority of condos in the GTA are built to be used as investment properties. Developers target investors who are able to purchase multiple units at once, and later lease them to young professionals and students.

A family of three or more people can’t reside in a small 400 square foot condominium with a walled kitchen and no private space. The older condos located in Mississauga with more than 1,200 square feet are an ideal option, and there are plenty of families who live there. If you come across an old condo available for auction in Mississauga and you are able to purchase it, do so since it’s the best value for your money!

New Home Construction Fell in the back for a few years

The construction of new homes in single-family houses in the last five decades, and includes the average of long-term housing units built. Builders surpassed that average during the time of the housing bubble. This led to an oversupply of houses on the market, and the value of homes fell. This was among the reasons that led to the housing market crash in 2008.

The rate of construction for new homes has slowed. In the past 13 consecutive years, builders weren’t capable of building enough homes to match what was the average. This underbuilding has left us with an inventory deficit of multiple years that could turn into the epidemic.

The Pandemic’s Impact on the Housing Market

When the pandemic struck the country, it brought a new admiration and renewed appreciation for the importance of the home. The need for a secure place to work, live or study in, as well as exercise was even more crucial for Canadian all over the country. Therefore, when mortgage rates fell to less than 2%, buyers were eagerly entering the market to take advantage of these low rates to secure homes that could meet their ever-changing demands. In the meantime, sellers were reluctant to put their homes for sale as fears regarding the pandemic grew.

Lower mortgage rates

Bank of Canada dropped the mortgage rate from 5 percent to under 2 percent, which led to numerous Canadians to purchase homes. People who are looking to buy homes benefit from record-low rates of interest. The demand grew overnight, but the supply didn’t. The first houses sold at $300k to $400k more than the asking price. Many who did not desire to buy a house considered buying a panic house, believing that the prices would rise more.

Market Report Summary for January 2022

Average home prices in Ontario have increased by 25.6% in a year to $998,629
Toronto home prices increased by 24% year-over-year to $1.07M
Ottawa home prices increased by 15% year-over-year to $677k
Mississauga home prices increased by 30% year-over-year to $1.15M
Brampton home prices increased by 41% year-over-year to $1.37M
Hamilton home prices increased by 35% year-over-year to $976k

Here’s the thing: there are less houses on the market, and this is having a huge effect all across Canada. In fact, inventories are lower than ever before and if you’re thinking about buying in Central Ontario or anywhere else in the country – take notice!

If you are looking for property, there is no better time than now! Housing prices are skyrocketing due to limited supply. Low inventory means that this trend will continue over the next few years, so don’t wait too long!

For more information, please contact me at parveen@teamarora.com or +1 (416) 910-8923.

Tag: Real Estate 2022