The Dubai property market continues its golden run as it produced exceptional figures during the first half of 2022:
- ✔️ A total of 43,000 property transactions were recorded during this period.
- ✔️ The combined worth of these transactions was AED 115 billion.
- ✔️ These figures show a rise of 87 percent in comparison to the first half of 2021.
- ✔️ June 2022 broke records with 8,900 real estate transactions worth AED 22.75 billion.
Looking at these figures, it’s safe to say that the real estate sector of the emirate is flourishing at an unprecedented rate.
Dubai Property Market Outlook for Near Future
Maintaining the pace of the first half of the year, the second half of the year also started on a strong note.
- ✔️ July 2022 witnessed 7,092 transactions, which shows a 63.56 percent increase as compared to July 2021.
- ✔️ With this, the total real estate transactions till year have reached a record-breaking 45,793, the highest since 2009!
Having said that, the average property prices remain lower as compared to the peak 2014 period.
Factoring in the growth of the sector, the Dubai property market outlook shows that the average prices will see a significant rise in the near future.
Let’s delve deeper and find out which factor will impact the performance of the Dubai property market in late 2022 and the first half of 2023.
Villas to Dominate the Market
The villa sector has been driving the real estate market for a couple of years now. Quarter after quarter, their prices have increased, making them hot properties in Dubai. The apartment sector, on the other hand, has been struggling with the price increase remaining in the single digit. However, recent statistics show promising growth in this sector as well.
According to property experts, villas in Dubai will continue to dominate the market. Key areas, such as Arabian Ranches, Palm Jumeirah, and Dubai Hills Estate are expected to maintain their upwards trajectory, attracting investors and end-users due to their high ROI and upscale lifestyle.
The Influx of Foreign Investors & HNWIs
The Dubai property market has cultivated a reputation for being an investor-friendly market for many years. HNWIs prefer this market for enhanced safety, exceptional growth, and abundant opportunities.
With relaxed conditions for golden and other residential visas in Dubai and other reforms, the market is set to become more accessible and attractive for investors and HNWIs. The result will be more investment and better ROI.
The Rising Demand for Ultra-luxury Properties
There has been a notable increase in the demand for ultra-luxury properties in Dubai. This demand is expected to intensify in the near future.
There were 82 ultra-prime deals (priced over $10 million) recorded from January to June. Compare it to 2021 where the entire year recorded 93 sales in this sector. This was a record in itself, which will be broken easily in the second half of the year as we are only 11 transactions behind.
The same trend is expected to continue into 2023 as well when we talk about the Dubai property market outlook. However, only time will take if the upcoming year will be able to break this record or not.
FIFA World Cup 2022
Although the mega event is set to take place in Qatar, the Dubai property market is expected to benefit from it. The most anticipated event among football lovers, FIFA World Cup 2022, will commence on November 20 and complete its course on 18th December 2022.
Dubai will leverage the fact that Qatar doesn’t have the capacity to accommodate all the visitors and spectators. The short-term rental market, in particular, will record increased activity during this period.
In nutshell, the Dubai property market outlook for the near future looks very promising. The prices are set to increase and the demand will continue to grow. This makes the market ripe for investment.
