The Dubai property market’s fortunes shifted for the better in 2021, but the good times are far from finished. Indeed, all indications indicate that the Dubai real estate market would maintain its upward trend and good strength well beyond 2022.
In terms of the first half of 2022, growth has been spectacular to say the least.
- There were 43.2K transactions in the first half of 2022, with a total value of AED 115 billion.
- June was by far the greatest month in the first half of 2022. In fact, June saw the highest sales total since 2009, which is saying a lot.
- After a 23% gain, real estate prices in the first half of 2022 averaged AED 1,140 per square foot.
- Business Bay, Al Hebiah Fifth, Dubai Marina, Downtown Dubai, and Jumeirah Village Circle are the top-ranking neighborhoods in the first half of 2022. While real estate transactions increased in almost every municipality, these communities saw the greatest rise in transactions in the first half of 2022.
- Other top-performing regions include Dubai Creek Harbor, Al Merkadh, and Palm Jumeirah. All of these communities generated notable outcomes, bode well for the future of the Dubai real estate market.
Data shows that the Dubai real estate market has matured, based on year-on-year increase. The first half of this year ended on an extraordinarily high note, with 43.2K transactions recorded. These trades are projected to be worth AED 115 billion in total. The sales volume increased by an astonishing 60% year on year, which is fantastic news in any case. The increase in sales value is considerably more considerable. Sales increased by about 88% year on year in the first half of 2022.
The increase was rather equally spread over the first six months, but the biggest sales volumes were reported in June. In comparison to 2021, June 2022 had an unprecedented 41% increase in sales volumes, setting a 13-year record. In fact, the month of June 2022 was the greatest for the Dubai real estate market since 2009.
Demand for all sorts of residential residences increased. In the first half of 2022, for example, the apartment niche saw 5,880 sales. These trades are worth around AED 11 billion. The villa sector, which is particularly popular among wealthy expats, had around 2,000 sales in the first half of 2022. These deals totaled AED 7 billion in value.
Not only did sales transactions increase in the first half of this year; typical property rates also increased significantly. The average price per square foot has increased by 23% year on year to AED 1,140.
Although there is no question that the first half of 2022 has been excellent for Dubai’s real estate market, the question on everyone’s lips is whether the second half will be equally outstanding in light of global challenges. Despite the global recession, expect growth to continue unabated. While Dubai is not immune to bad global trends, its real estate market is healthy and popular among overseas investors. Because of these favorable variables, Dubai’s real estate market will be able to outperform other real estate markets in the near future. Furthermore, the robust first half indicates that Dubai’s property market is well-positioned to tackle global difficulties.
Overall, the Dubai real estate market will continue to grow and will most certainly conclude 2022 on a high note.