In 2021, the fortunes of the Dubai property market changed for the better, but the good times are far from over. According to all trends, Dubai’s real estate market will continue its upward trend and positive momentum even beyond 2022.
The Dubai real estate market at present has grown significantly compared to last year. Year-over-year sales volume increased by a staggering 60%. It is even more significant in terms of sales value. Compared to the first half of 2021, sales in the first half of 2022 jumped 88%.
Although sales volumes increased evenly across the first six months, June recorded the highest volume. Compared to 2021, June 2022 saw sales volumes grow by an unprecedented 41%, breaking a 13-year record. In fact, June 2022 is considered the best month since 2009 for Dubai’s real estate market.
More than 70% of market transactions are quick, according to brokers and developers. Many consumers, including startup entrepreneurs and investors from nearby Gulf nations flush with cash, are buying luxury properties for holding or settling in. Also, it is reportedly said that Russians are at the top of buying property in Dubai. The reason is that Russians are searching for a safe haven for their money in the wake of the Russia-Ukraine conflict and a rise in oil prices.
The price of premier real estate in the emirate increased by 70.3% in the year that ended in September, making it the largest gainer on Knight Frank’s worldwide index, focusing on Dubai’s most coveted and costly residences. This is far higher than the index’s increases of 2.5% in London, 8.9% in Paris, and 7.3% in New York, where deals have been impeded by rising interest rates and slowdowns in the economy tied to the energy sector.
In March, Indian billionaire Mukesh Ambani purchased an $80 million property in Dubai for his youngest son, breaking previous real estate market records.
A few weeks later, an unidentified buyer paid 302.5 million dirhams ($82.4 million) for an eight-bedroom, 18-bathroom villa on the city’s man-made Palm Jumeirah island. Despite the fact that a monarchy runs the emirates, and the summer temperature becomes severe to unbearable for some, people are still moving to and investing in Dubai. Buyers and end-users are drawn to the UAE’s hospitality, services, luxurious lifestyle, and mega infrastructures.
Furthermore, the no-income-tax policy allows foreigners to invest and get good returns.
Undoubtedly, Dubai’s real estate market has performed well in the first half of 2022, but with global headwinds, everyone is wondering whether the second half will be even better. Despite the global recession, growth is expected to remain strong. Even though Dubai is not immune to negative global trends, the real estate market is healthy, and foreign investors are very interested in it.
These factors will make Dubai’s property market even more successful in the near future compared to other real estate markets.
Moreover, Dubai’s property market is well-positioned to meet global challenges due to its first half. Dubai’s real estate industry will continue its upward trajectory and will likely end 2022 even better than it began.
However, the survey aims to know the public opinion on Dubai’s luxury property boom. Hence, hurry and answer the survey on Dubai’s luxury property market soaring high on the Real Research app from October 27, 2022. After that, you will receive 40 TNCs as a reward.
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