The UAE defied all the rules of the global pandemic and its economy bounced back faster than several other developed countries. A successful COVID-19 vaccine rollout and strict precautionary measures have left the world in awe. Dubai real estate sector also proved to be resilient and got back on its track within a year and the number of transactions recorded in 2021 will testify to the statement.
2021 – A positive year for Dubai real estate sector
According to the Dubai Land Department, a total of 84,772 real estate transactions were recorded in 2021, worth around AED300 billion. This has attracted a number of Expo 2020 visitors and according to an estimate almost 4% to 6% of Expo visitors have shown interest to invest in Dubai properties and they might plan to relocate to Dubai, in order to experience an elite and posh lifestyle.
2022 to be a prosperous year for Dubai realty market
Following a successful year, 2022 began with a bang for the Dubai realty sector. With a spike in activity in Dubai residential market, the transaction volume in January 2022 touched the figure of 5,517, which is 80.2 per cent more than the number of recorded transactions in January 2021.
According to CBRE, a commercial real estate services firm, during this period the sales for off-plan properties increased by 18.75 per cent and secondary market by 32.5 per cent. The average price of properties is increased by double-digit in the year to January 2022.
During this tenure, average apartment prices increased by 8.5 per cent while the villa prices were increased by 21.8 per cent.
The residential property prices depict positive and upward growth in January 2022, as the data shows that residential property prices and rents climbed at the fastest rate, since early 2015 levels.
Downtown Dubai has recorded the highest average sales rate per square foot at AED1,958 for apartments, while Palm Jumeirah has recorded the highest average sales per square foot at AED2,699 for villas.
Positive rental yield
The CBRE report further revealed that the average rent in the year to January 2022 has increased by 10.1 per cent – with average apartment rents increased by 8.3 per cent and average villa rents increased by 22.8 per cent.
Downtown Dubai remained the most popular area for apartments, with average rent reaching AED150,723 per annum; and while Al Barari was the most sought-after community for villas, with average rent touching AED798,374 annually.
Room for growth
With positive growth and increased demand, Dubai real estate sector will continue to experience a moderate yet upward growth momentum in 2022. Limited supply for villas will lead to an increase in prices and demand while the apartment segment will become more stable in terms of price and rental yield.
A majority of experts agree that new visa policies, buyers’ protection laws, and new supply will be the key factors to drive the growth upwards.
If you are planning to buy an apartment or villa in one of the above-mentioned areas or anywhere in Dubai, feel free to call the team HFRE at +971 4876 2473 or write us an email at email@example.com and one of our team members will get back to you with the best available options that can also fit into your budget.