Dubai real estate in 2022
An overview of the real estate sector in Dubai in 2022: number of real estate transactions, total market value, trends in rents and sales prices...
Are you looking to protect your savings from inflation and invest in real estate to build up your assets and generate additional income?
We tell you what you need to know about real estate in Dubai in 2022.
Dubai's real estate sector off to best start ever
The first two months of 2022 were the best ever start for Dubai real estate in terms of transaction volume.
In fact, the total number of real estate sales recorded amounted to 12,119 for the months of January and February 2022, representing an increase of 17.7% compared to January and February 2017.
February 2022 alone broke the record, with over 6,300 property sales, 43.5% more than any other February.
Compared with January 2022, this represents a 9.9% increase in transaction volume.
Dubai real estate in 2022: explosive growth
After the effects of the pandemic, the renewed confidence of investors and buyers is evident when we check the sales and resales of houses, villas, properties and apartments.
Indeed, in addition to the strong start recorded in the first two months, the year 2022 saw more than 97,000 real estate transactions recorded in Dubai.
For the full year 2022, Bloomberg reports that the city has achieved real estate sales worth 528 billion dirhams, or 132 billion euros.
The value of the real estate market in 2022 is therefore 66 billion higher than in the previous year, for growth of 76.6%. The trend remained unchanged until the 4th quarter of the year, which was also marked by an 18% increase in average prices compared to the 4th quarter of 2021.
While this represents an increase of 76.5% on the previous year's real estate sales, it is also an all-time record, as the city had never before recorded more than 500 billion dirhams worth of transactions. The Prince of Dubai describes this as an "exceptional performance".
Dubai's top transaction districts
In Dubai, neighborhoods featuring new real estate developments showed an impressive rate of attraction. For example, in February, the Mohammed bin Rashid City (MBR) district recorded the highest number of off-plan apartment sales: 568 off-plan transactions, more than double the 266 off-plan sales in the Business district.
Business Bay's performance was boosted by the construction of three massive real estate developments in the area: The One Hotel Business Bay, Sky Bay Business Bay and Dolphin Tower.
Dubai Creek Harbour and Jumeirah Village round out the top 4 neighborhoods in terms of real estate transactions, with 169 and 161 unit sales respectively.
Two major hotels (The One and Avalon Tower) and a four-star property, The First Collection, have been completed in Jumeirah Village. The completion of these projects during 2022 has undoubtedly helped to boost the appeal of Dubai's real estate sector.
The three districts with the highest number of real estate transactions during the year were Business Bay, Dubai Marina and Jumeirah Village, with 10,300, 7,400 and over 6,000 sales respectively. In terms of off-plan sales, Business Bay and Damac Lagoons share the top spot.
Dubai also set new records in 2022 for luxury properties, particularly villas and apartments. The two apartments sold at the highest purchase price in 2022 cost 34 million and 20 million euros respectively, while the villa sold at the highest purchase price cost over 72 million euros.
Investing in real estate in Dubai in 2023: is it a good idea?
If you're thinking ofinvesting in real estate in Dubai in 2023, don't hesitate. You can invest in rental property or even in furnished rentals. Indeed, as one of Cavendish Maxwell's agency executives puts it, this is "the second best year we've ever had".
Property experts predict that this trend will continue throughout 2023. In fact, according to Property Monitor, property prices are rising by 1.12% every month and 16.7% every February.
So if you want to invest in rental property in Dubai, don't waste any more time. Dubai is a large, clean, attractive city with excellent medical care and schools, and it still has a lot to offer in new-build property.
Just look at the number of developers and real estate agents on the one hand, and the number of people who want to make an investment and become the owner of a new home or old property on the other.
It should also be pointed out that the economic and geopolitical context contributed considerably to this year's performance. In fact, in 2022, wealthy Russian individuals were the biggest international buyers of real estate in Dubai.
It seems that the Russo-Ukrainian war and the relatively gloomy economic outlook due to European and American sanctions have pushed many Russian buyers and investors towards Dubai real estate.
As a result, rental demand has grown, especially in the luxury sector, for new villas and apartments. You can benefit from this.
