FIFA World Cup 2022 Qatar had a positive effect on Dubai real estate market

The FIFA World Cup 2022 has not only affected the economy of the host nation Qatar but has also had a positive impact on other countries in the region.

In November, a report by real-estate developer ZāZEN Properties forecasted that Dubai’s volume and value of the sales for off-plan and secondary properties would hit a 12-year high. According to a report by Fast Company Middle East, the actual effect of the rise in tourism in the region will be seen in the following months. 

The world cup led to “a positive effect on the Dubai market", Prince Ufuoma Eshalomi, Sales Director at Powerhouse Real Estate, said.

What makes Dubai stand apart?

Alex Galtsev, Founder and CEO of Realiste, said local rental prices increased by 50% over the three months before the tournament. This occurred due to a significant hike in demand for leasing in Dubai.

Galtsev further highlighted how Dubai's visa programmes and affordable housing in comparison to markets like New York and London help it stand apart. "But the World Cup 2022 played its role in attracting more attention to the region," he added.

Realiste has developed an AI-powered tool that enables real estate investors to see the asset’s price history. It also helps discover the average price in the vicinity and book it online. It is active in ten cities globally. These include Dubai and Riyadh.

Galtsev stated that when it comes to Dubai, many investors are viewing "buying apartments for renting them out as a wise investing strategy".

“If it stays tax-free, safe, keeps up the high quality of life, and continued development, then there’s no other city that can beat it," he said highlighting Dubai's growth.

He stated, “The UAE is an ideal place for capital storage as it happens to be one the most stable regions in the world. It is not affected by the current geopolitical situation and energy crisis.”

When it comes to investing in real estate to make money, Galstev states how investors view Dubai as a fast-growing market where they can profit by buying an apartment and selling it in the future.

Citing the Jumeirah Village Triangle as an example, he said that an average apartment in this district would cost $199,156. However, the prices will increase by 62% in the next three years. An important point to note is that not all areas of Dubai will lend investors much profit, according to the report in Fast Company.

"For instance, Dubai Marina prices will rise by 19% in the next three years. And even in the profitable areas, some projects will bring investors no money. “It is a challenge to find hidden gems here,” he added. 

Galtsev said that Dubai's position as one of the firsts in peoples' choices is because it was one of the first Emirates to allow foreigners to buy property.

"Since then, the international business community has grown significantly. So it seems easier to find a job or run a company from here than from other Emirates,” he added.