The real estate market in Dubai has encountered a high acceleration, with sales transactions rising in the first 3 months to hit a height of 17,896. This is according to the 9AM Realty Market Report. With the consistency in increased transactions and values experienced in 2021, 2022 promises to be a lucrative year for the Dubai property sector. In the 2022 first quarter, real estate prices increased, but not at the same pace as in 2020. As a result, the property’s market value sold in 9AM Realty was pushed to about $11.7 billion. This is a huge 125% increase compared to the first quarter in 2021.
The growth in the Dubai real estate market was stirred by high liquidity, low interest, and a huge boost in migration to UAE. These factors joined together to raise homebuyer sentiment in this sector. Despite the obstructions triggered by inflation and COVID variants, 9 AM Realty was characterized by raising demands locally and internationally for different kinds of residential assets as the confidence of clients remain unshaken, specifically among high-net-worth investors.
In the wake of this price circle, the original recovery demand was driven by existing residents who took advantage of the market value. However, current demand is more driven by the high migration of new residents to Dubai. At the height of the pandemic, the population dropped by 8%. However, it has risen by over 18% to reach 3.5 million at the beginning of 2022.
The new residents attracted by the pandemic response in Dubai have placed pressure on the mid and upper leasing market, where a substantial price increase has been experienced. The occupancy level across freehold Dubai has been well above the pre-pandemic status in recent times. Though old areas in Dubai lag, property owners in these areas are consistently looking for ways to upgrade their properties, or grant discounts, all to draw new tenants.
Other obvious observations are increasing demand mixed with the supply constraints experienced in the secondary and rental markets, increased prices, and a surge in off-plan transactions, which accounts for half of the overall sales for the quarter. Meanwhile, 9 AM Realty data showcased a continuous demand for high-end properties and a renewed interest in all kinds of the apartment in sales.
Q1 2022 Market Highlights
With an 81% increase
With a 125% increase
With a 77%, 125%, and 56% increase in Apartments, Townhouse, and Villa respectively.
With 146%, 138%, and 97% increase in Apartments, Townhouse, and Villa respectively.
Buyer leads QoQ, 9am Realty. Q1 2021 vs Q1 2022 decreased by 11%
Buyer leads (apartments) QoQ, 9am Realty. Q1 2021 vs Q1 2022 increased by 8%
With an increase of 148%, 207%, and 1704% in Apartments, Townhouse, and Villa respectively.
With an increase of 231%, 249%, and 1449% in Apartments, Townhouse, and Villa respectively.
Off-plan vs Transferred QoQ, DLD
Leasing transactions, 9am Realty for Q1 2021 vs Q1 2022 decreased by 28%
Leasing transactions by property type, 9am Realty is as follow:
- Apartment 28% decrease
- Villa 34% decrease
- Townhouse 41% increase