Despite the bleak regional and global economic outlook, the emirate's real estate market seems to prolong the boom throughout the future months. The average price of affordable property in Dubai climbed by up to 7.7% in the first half of 2022, whilst rates in upmarket neighbourhoods increased by up to 19%.
High-net-worth investors continue to choose Arabian Ranches, Dubai Hills Estate, Downtown Dubai, and Dubai Marina, while typical lower price point buyers concentrated on suburban regions including Dubailand, Damac Hills 2, Business Bay, and Jumeirah Village Circle, according to Zoom Property Insights.
CONTINUED GROWTH OF TRANSACTIONS IN DUBAI REAL ESTATE
Dubai's prime residential property market has witnessed rising demand and prices. Pairing this with the expansion of the affordable housing market, all-around solid performance has occurred. With this healthy trend, Dubai real estate will undoubtedly set new records in 2022.
According to the Dubai Land Department, with 9,720 transactions totalling almost AED 24.3 billion, August was the best-performing month for sales in 12 years. With nearly 67,000 transactions, total sales over the first nine months of the year topped AED 180 billion. This also set a record for the highest number of sales in the first nine months of any year. The most recent figures provided by the Dubai Land Department show that Dubai's prior nine-month sales high was AED 116 billion.
Property analysts anticipate that the industry will maintain its pace through 2022 and 2023. This comes down to several reforms and pro-investor efforts. These include the high levels of transparency within Dubai’s real estate market and its perceived attractiveness amongst investors.
Equally, investor-friendly laws, such as the stringent limitations on real estate advertising and additional transaction reporting requirements, are crucial elements. However, Dubai's Golden Visa Program also provides attractive incentives for highly skilled individuals to work or study in the UAE for up to ten years.
The industry is anticipated to have further growth as a result of a significant inflow of fresh capital. But equally, a somewhat more cautious release of new supply by government and semi-government developers.
ANTICIPATED GROWTH OF DUBAI REAL ESTATE
Some analysts claim that Nakheel Developers' decision to relaunch the Palm Jebel Ali project is representative of the industry's growing confidence in maintaining its healthy growth. Equally, the oil and non-oil industries are expected to have a continued resurgence for the remainder of 2022 and beyond. This will likely propel the country to its strongest annual economic growth in more than a decade.
While the World Bank considers the country to have the fastest recovering economy in the GCC, Dubai's main bank Emirates NBD raises the country's growth estimate to 7% in 2022. So, Dubai’s real estate market looks set for a continued positive future.
