Posted by: Helena Kryukova 2013 was another milestone for Dubai's real estate market on the road to sustainable development, and it was a watershed period, thanks in large part to the victory of Dubai in the competition for the world exhibition "EXPO 2020". But there were many other events. We suggest that you look back at the main ones, identify those key points that set the vector for further movement to the modern "city of the future" that Dubai has managed to become today.
ABOUT PRICE GROWTH
The first thing to note when summing up the development of the real estate market in 2013 is an unprecedented increase in prices for real estate of all types compared to previous years. The fact that Dubai expects a “hot” year, both in terms of demand and in terms of price increases, was the first signaled by the most significant event of April, namely, the crazy excitement surrounding the sale of villas in the Mira complex from Emaar, when thirsty buyers stood for three days in queues for housing. From this moment, Dubai's developers have become more clear about the scale of demand and an adequate level of housing prices.
At the end of the year, all leading international consulting and analytical companies, such as John Lang LaSalle, Knight Frank, CBRE and others, presented their reviews, the data of which show that in some cases the cost of housing in the emirate almost doubled over the year. Such data was published on its website by the UAE's popular real estate portal Propertyfinder. The trend towards a rapid increase in prices in 2013 became apparent even at the end of the first half of the year, when, according to a report by Cluttons analysts, property prices in Dubai rose by 30.6%, ahead of the pace of development of all other advanced real estate markets in the world in this regard.
On average, the annual growth in housing prices was so substantial and rapid that at the end of the year the emirate’s authorities were seriously worried about the appearance of another financial “bubble” and began to analyze the speculation market for primary housing, which causes the greatest concern in this regard. The figure that caused such concern of the government was a record mark of 40% for the growth in the cost of apartments, predicted by analysts for the future, that is, the current year of 2014.
In 2013, the Dubai real estate market completed with indicators ranging from 22.4% to 37% growth in the cost of housing, according to various agencies. It should be borne in mind that fluctuations in the increase in the cost of housing were not the same in different areas of the city and for different types of real estate. The analytical portal Reidin published the following figures regarding the growth of prices for various types of housing in Dubai in 2013: apartment prices rose, on average, by 24.5%, while villa prices rose less significantly: only 14.9% per year.
ABOUT RENT
In the rental segment, price increases were particularly acute, which forced many tenants to leave their usual places and move to more accessible border areas of neighboring emirates, such as Sharjah, which in turn provoked an increase in rental prices there. In 2013, the rental price of the most popular type of housing for two-bedroom apartments on average in Dubai increased by 17.6%, and the cost of renting villas by 12.6% (according to Reidin agency author's note).
A new word in the regulation of relations between tenants and landlords of Dubai was a program for assessing the real value of rental housing, proposed at the very end of 2013 by the Dubai Real Estate Market Regulatory Agency (RERA). This is a rental index, which will allow not only to adequately assess the cost of housing taking into account parameters such as, for example, the view from the window or the presence of a swimming pool in the building, but also serve as an indicator for the permitted, according to the new resolution, increase in the cost of rent for existing tenants, which now make up no more than 20% of the existing one.
ABOUT COMMERCIAL REAL ESTATE
The demand for commercial real estate in Dubai, following the results of the 8th annual Arabian Business Forum held in Dubai in May, exceeded even the pre-crisis 2007 figures in some segments, which did not slow down its impact on supply growth. In the Business Bay area, as well as in a number of free economic zones, developers have been very active in planning the construction of a large number of new office buildings and mixed-use complexes designed to provide all newly arrived representative offices of international companies in Dubai with convenient office space in the business center of the emirate. This was all the more relevant because in Dubai there was an obvious shortage of large-area office spaces that large corporations needed. In part, this issue is also being addressed through the redemption of many small office premises in large centers from small owners by large developers.
ABOUT DUBAI DISTRICT POPULAR RATING
The growth rate of prices in the past year, as already mentioned, significantly varied from district to district, sometimes at a shocking 20-25% annual growth, however, the rating of popularity of the main residential areas of Dubai among buyers and tenants of housing, compiled at the end of the year, did not have any surprises brought. As before, the prestigious area of Dubai Marina has been steadily holding the leadership in this regard for many years, where in 2013 the largest real estate transactions were registered. It is here that the most expensive six-figure apartments are sold in sales contracts, and among the premium segment villas, the most expensive and sought-after villas in the Emirates Hills complex remain. Dubai’s areas such as Jumeirah Lakes Towers, the man-made island of The Palm Jumeirah and the heart of the city, the Downtown Dubai district, continue to enjoy constant popularity.
ABOUT EVENTS
The most notable events of the year 2013 for the Dubai real estate market were exhibitions. First of all, we are talking, of course, about the victory of Dubai in the competition for the world exhibition "EXPO 2020". This event literally shocked all areas of the Dubai economy, starting primarily with real estate.
The decision to choose Dubai as the venue for EXPO 2020 was made on November 27 at the General Assembly of the International Exhibition Bureau (BIE). Dubai's main competitors in the competition were Turkish Izmir, Russian Yekaterinburg and Brazilian Sao Paulo.
However, it was clear to most experts from the very beginning that Dubai has exceptional competitive advantages, the main of which is that most of the necessary infrastructure has already been built here, and that which will still be built has every chance of remaining in demand after the exhibition.
The consequences of the victory of Dubai in the competition for the "EXPO 2020" were not long in coming and were manifested by an instant jump in property prices in the area of the exhibition venue, the Dubai World Central multiphase complex, as well as a surge in the activity of developers and buyers who want to buy land in this area. The report of the international bank Standard Chartered Bank said that the holding of "EXPO 2020" will bring the economy of Dubai more than US $ 17.7 billion, and each dollar invested in the event will pay off six times.
Another high-profile event, which somewhat overshadowed the news of the "EXPO 2020" in Dubai, was the holding in Dubai of the world real estate exhibition Cityscape Global in October 2013. It was at this event that all the most visible and large-scale projects developed by Dubai developers in 2013 were presented. The event, which was allocated over 25 thousand square meters. meters of territory, 233 companies from different countries took part. Cityscape Global exhibition, without exaggeration, was the event that finally convinced everyone that the real estate market in Dubai has completely revived after the crisis of 2008 and is confidently entering its prime.
ABOUT REGULATION
Of course, when covering the state of the real estate market in 2013, it is simply impossible to ignore such a topic as changing Dubai's regulatory legislation in order to stabilize the market and prevent another crisis. Concerned about the limitation of speculation on unfinished real estate, the Government of Dubai, represented by the Land Department, focused its efforts on regulating the housing sales market: for example, the registration fee at the time of purchase and sale of real estate in Dubai was doubled immediately: from 2 to 4% of the transaction amount .
In addition, the UAE Central Bank, which has long threatened to limit the maximum size of mortgages, tried to implement its restrictions in practice and set the maximum size for mortgages: up to 80% of the cost of housing for local residents (when buying a first home no more than US $ 1.36 million) and up to 75% for expatriates (under the same conditions). However, until the end of the year, some banks still continued to violate this law and issue loans in the amount of up to 90% of the cost of housing.
Changes have also come to the rental industry: a new regulatory body has been created to resolve disputes between the parties to the lease, a new lease index has been introduced, the short-term lease market has been settled and the maximum allowable rent increase has been set when renewing the lease agreement with the previous tenant.
ABOUT NEW ACHIEVEMENTS
And finally, completing a comprehensive review of the state and development of the Dubai real estate market in 2013, I would like to note the main landmark projects presented by developers, projects that promise to completely change the face of the city and become new dominants of its landscape. Here, first of all, it is necessary to mention the construction of the man-made canal Dubai Water Canal, which will connect the Dubai Gulf with the Persian Gulf and pass under the Sheikh Zayed Highway, through Al Safa Park and Jumeirah 2, where in the southern part of Jumeirah Beach Park flows into the Persian Gulf.
Dubai’s new landmark and another world record presented in the city will be the construction of the world's largest indoor theme park, IMG Worlds of Adventure, in Dubai, which began in 2013, with a capacity of more than 20 thousand visitors every day. Another amazing novelty introduced in 2013 was the presentation of the project of the underwater hotel Water Discus Hotel, which may soon be built in Dubai.
Other mega-construction projects launched or continued in 2013 included large-scale projects such as Meydan City worth US $ 11 billion, further implementation of the Mohammed Bin Rashid City project, which will create the world's largest man-made lagoon with an area of 40 hectares, construction hotels and residential complexes, among which stands out Viceroy Dubai Palm Jumeirah on the man-made palm island and many others.
Also in Dubai, an enlarged analogue of the London Eye Dubai wheel will soon appear, which will be the largest in the world, but this is another story and the next year, which, without a doubt, will be full of new successes and achievements for Dubai, the "city of the future." 
You can get any additional information about the acquisition and management of your property in Dubai from the specialists of IMEX Real Estate by tel. in Moscow +7 495 5100008, toll-free number in the UAE 800-IMEX (800-4639) or by sending a request by e-mail [email protected]
