In 2022, Dubai real estate sales reached almost the same amount as in the previous three years combined.
According to a report by Henley & Partners, in 2022 the UAE attracted the largest share of private capital in the world. The Dubai authorities announced a new record in the real estate market of the emirate. Experts agree that 2022 proved to be the best year for Dubai in terms of performance, as evidenced by numerous highs in both value and sales volumes.
Thus, according to the Dubai Land Department (DLD), annual sales amounted to an unprecedented 265 billion dirhams (about $70 billion). For comparison, over the previous three years, in total, this figure reached 295 billion dirhams (a little over $80.2 billion). In total, 97 252 real estate transactions were registered in the emirate in 2022, which is 59.5% more than in the previous year in terms of number and 76.1% in value terms.
In December 2022, the value of transactions exceeded 26 billion dirhams (over $7 billion), which was the second highest monthly figure - in November 2021, sales of about 30.8 billion dirhams (nearly $8.4 billion) were recorded, which so far remains the highest value for Dubai.
Demand Peculiarities
The element of luxury real estate continues to dominate, with the largest increase in the world - by 88.9%, between the third quarter of 2021 and the third quarter of 2022. For comparison, Miami and Tokyo came in second and third with 30.8% and 17% increase, respectively. In the first quarter of 2022 alone, there was recorded a threefold increase in sales in this segment compared to the same period of 2021. The average transaction value reached AED 4 million (just over $1 million).
Demand for move-in ready apartments and villas in Dubai has seen steady growth throughout 2022 for a variety of reasons. Among them:
increase in population due to new residents,
increased interest from international investors with ultra-high capitals.
As a result, this segment occupies more than half of the total volume of transactions with residential properties.
Demand for off-plan properties has also increased significantly. Rising borrowing costs and a shortage of available homes on the existing market began to crowd out investors and end users with limited capital.
In addition, the structure of demand has changed significantly. The main difference now is that a much larger number of clients, when buying real estate, do not have plans to immediately resell it and capitalize on the price increase. They aim to earn a steady income.
Also in 2022, end-users with real money have loudly declared themselves - people who buy property either for personal use or as a long-term investment, immediately pay for its price in full.
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