Several economic sectors have lately been sending prevailing recessionary warnings from different parts of the globe but it cannot shake unwavering investors’ confidence in Dubai real estate market. The recent transactions depict the growth and strong demand which also resulted in the launch of new residential projects. Another recent trend prevailing in the market is foreign high-net-worth individuals’ interest in luxury properties in Dubai, reflecting their growing confidence.
Dubai real estate – A lucrative investment segment
Over decades, Dubai real estate has transformed into an established and developed marketplace, boasting extensive investment opportunities in form of apartments, penthouses, villas, townhouses and plots. Now, all that potential investors need to focus on is the budget and neighbourhoods where they intend to buy properties for sale in Dubai. Luxury properties sector is another growing segment where robust demand conduces the launch of several luxury projects in Dubai.
Besides these intrinsic changes in Dubai real estate sector, huge credit goes to the country’s policy-makers for significant amendments in residence visa policies and for imposing stringent investor protection laws. These factors keep attracting foreign investors as can be seen in the escalated numbers of real estate transactions in the previous months. With around 43,000 property sales transactions worth over AED114.5 billion, the first half of 2022 remained the best performing first half after years.
The trend continued in the second half of the year as well, with several months proved to be record-breaking in terms of stellar performance.
October 2022 – A record-breaking month for Dubai real estate
Keeping the previous months’ trends alive, Dubai real estate continued showing excellent performance in October as well. Around 8,700 real estate transactions were recorded in October 2022 that account for a 62% growth in sales volume as compared to October 2021, when the market started showing recovery signs after the global pandemic.
More than AED25 billion in real estate deals were estimated to have taken place in Dubai, which is more than double the amount of sales that took place in October 2021. Around 6,500 transactions were made in Dubai for ready-to-move-in apartments and off plan properties for sale, which is also twice as many as were made in October 2021.
Dubai real estate continued riding high in November
The 3rd week of November 2022 started on 18th and ended on the 24th November proved to be significant for Dubai real estate sector. According to official data released by the Dubai Land Department (DLD), the emirate recorded AED6.4 billion worth of property deals, this week. More than 2,200 properties in Dubai were sold depicting a positive response from both local and international potential investors, and showing their utmost confidence in Dubai real estate sector.
This weekly performance indicates that the emirate can outperform any other fully-established real estate market around the world. Upon fractional analysis, we found out that 1,726 residential apartments and villas and 387 plots were sold during this week. Akoya Oxygen by DAMAC, Al Barari and Al Furjan remained the top three areas with the highest demand.
Though this data does not give us complete insight into the value of each property, which can give us a stark comparison between reasonable and luxury properties sold in the city during this period but it is clear that no bubble risk is reported for Dubai property market yet and this sector is expected to perform well in several years to come. Moreover, the constant increase in demand for properties for sale in Dubai has also increased their value across all neighbourhoods. The property brokers in Dubai are of the view that this kind of competition for both reasonably priced and luxury properties was last seen before 2014.
According to the data released by the Dubai Land Department (DLD), the value of these 2,217 properties in Dubai is nearly AED6 billion.
Luxury properties in Dubai – Another star performer of the market
Luxury and ultra-luxury properties for sale in Dubai remained the most in-demand segment compared to reasonably priced properties. 2021 saw the highest luxury properties demand and transactions of over AED10 million in the last decade, with Palm Jumeirah accounting for nearly 35 per cent of these transactions. This charm was further fuelled by the introduction of 10 year Golden Visa on an investment in the country.
Not just the demand for luxury properties in Dubai has tremendously increased over the past 12 months but prices as well. According to Knight Frank, a property consultancy in Dubai, the prices of luxury properties at several prime locations in Dubai have spiked high over the past 12 months and values increasing as much as around 90 per cent. “Prime residential values in Dubai continue to strengthen, growing by 29 per cent in Q3 alone, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes,” according to Knight Frank’s spokesperson.
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If you are also interested in investing in Dubai real estate – both in the luxury and mid-tier markets, get in touch with HFRE sales experts. Give us a call at +971 4876 2473 or can also write us at info@hfre.ae, and one of our representatives will get back to you to discuss your investment plan and hand-picked investment options in the market. We are industry experts and all you need is to be in touch with us and we will help you make a well-informed investment decision.