Both real estate and rental prices in Dubai increased steadily during 2022. On the strength of a surge in interest from foreign buyers, the number of residential leases and sales in the emirate hit all-time highs in 2017. Due to many factors, including its high level of security, its favourable business climate, its many investment opportunities, and much more, property in Dubai is in high demand.
Outcomes of the Real Estate Market in 2022
The real estate sector in Dubai had a banner year in 2022, with a number of record-breaking property deals. A CBRE research states that there were 90,881 real estate transactions recorded in the emirate, which is more than the previous record high set in 2009.
The value of real estate traded in Dubai in 2022 was above AED 500 billion (about USD 136 billion). We noticed a 92.5% increase in off-plan sales and a 32.4 % increase in resale activity. More than 8,500 transactions were recorded in the month of December alone, representing a 63% increase year over year.
Waterfront communities, such as Palm Jumeirah, were the most in-demand locations at the start of the year. High demand and limited supply drove up housing prices in the region.
Property near the water is in great demand among visitors, making beachfront real estate in Dubai a lucrative investment. Beachfront apartments may be found in some of the top developments in the emirate, including the Six Senses Residences, AVA by Omniyat, and Emaar Mina Rashid.
Hadaeq Sheikh Mohammed Bin Rashid Part 2 is one example of a green neighbourhood that has seen significant expansion. The average home price in this area increased by about half a million dollars, from AED 900,000 to AED 1,600,000. Families with children who value proximity to recreational amenities like canals and parks tend to settle in these types of neighbourhoods.
2022 Property Prices
The average cost of a home climbed by 9.5% in 2022. A rise of 9% was seen in the price of flats, while a rise of 12.8% was seen in the price of villas. During the month of December 2022, the average apartment in Dubai cost AED 1,168 ($318) per square foot, while the average villa cost AED 1,385 ($377) per square foot.
Sales of apartments in the Jumeirah region averaged AED 2,324 (USD 633) per square foot. The villa market had the highest sales rate per square foot of AED 3,921 (USD 1,067) in the desirable neighbourhood of Palm Jumeirah.
2022 rental prices
It was reported by CBRE that indices of residential rental growth also hit historic highs. Rental costs for both apartments and villas increased by 27.1% and 24.9% in 2022. Apartments had an average yearly rent of AED 95,000 (USD 26,000) as of the end of last year, while villas averaged AED 282,000. (USD 77,000).
Palm Jumeirah, a very desirable neighbourhood, had the highest average yearly rental fee in 2017. Annual apartment rents averaged AED 248,000 (USD 68,000), while villa rents averaged AED 1,017,000 (ISD 277,000) here.
A Stream of Investors
There were around 80,216 investors who reported registering 115,183 new property investments for a total of AED 264.15B in the previous year (USD 72B). In addition, in 2022, there were 53% more investors than in 2021.
In 2022, Russians made up the largest share of out-of-country purchasers at 15% of all deals, followed by Britons at 12% and Indians at 11%. The emirate had the largest infusion of individual money against the backdrop of a global geopolitical crisis. More than sixteen percent of Russian business owners and workers relocated to the United Arab Emirates, and that includes Dubai, in the first half of 2022. The FIFA World Cup 2022 in Qatar was also good for the local real estate market. Because of its prominence as a financial centre and top tourist destination, Dubai has become the region's economic powerhouse, surpassing even Qatar.
2023 Real Estate Market Predictions
It's no secret that the emirate of Dubai is still a hotspot for international investors. Its widespread acceptance may be attributed to its solid economic base and promising future prospects.
It is expected by CBRE that both property prices and rental rates in Dubai will increase at positive rates this year. Recent studies predict that the emirate's already thriving real estate market will continue to expand by as much as 46% by the year 2023. Between 30,000 and 35,000 additional homes are predicted to be completed this year.
Before the end of 2023, Dubai's Strategic Plan 2026 was launched with the goal of making the city's real estate market one of the greatest in the world. New real estate solutions, innovation, and a data-driven industry will be guaranteed in the emirate, boosting investor trust. The adoption of international real estate standards will also be prioritized.
The emirate's support for SMEs and its adaptable regulatory framework contribute to the region's attractiveness as an investment destination. Real estate in Dubai is a fantastic investment because of the city's popularity among professionals and businesspeople.
Foreign investors that prioritize security will continue to see the emirate as a promising location. In light of the current oil crisis and the associated geopolitical unpredictability, Dubai's position will only increase. As a result, 2023 will bring even more property demand.
Local prices in Dubai are expected to rise by at least 10% to 15% in 2023, according to industry analysts. The areas that are now undervalued and have cheap real estate will see massive expansion. In 2022, the bustling neighbourhood of Jumeirah Village Triangle, for instance, saw home values increase by 62%, with average prices reaching AED 731,000. (USD 199,000). A 29% increase in property values is predicted for this area this year.
Conclusion
In accordance with the highest standards, Off Plan DBX is a renowned real estate company that offers a wide variety of services for off plan properties in Dubai. The company's highly trained staff offers a wide variety of real estate services in various locations in Dubai, including the sale of apartments, villas, rooms, etc.
