Past Q1 and Post Dubai Expo 2020; the State of Dubai Real Estate Market
May 26, 2022
Dubai property prices experienced a confidence-boosting increase of 11.3% in the period Jan-Mar 2022.It’s common knowledge that the real estate market in Dubai is the biggest indicator of overall economic conditions and the peaks and valleys in the real estate sector reflect onto other industries and the economy in general.Over the years investors from all around the world have been drawn to Dubai because of its investor-friendly policies and strict yet transparent regulations – thereby providing investors with a safe and profitable investment option. The Dubai Expo 2020 has been a massive success and has been able to attract millions of tourists and potential investors to the shores of Dubai. However, now that the Expo has ended, the common question most people ask is if the real estate market will continue its upward trend. The answer is most likely “yes”. Given the real estate sector’s strong performance in Q1, the trend is likely to continue for the rest of 2022.Average property prices in Dubai surged 11.3 percent during the January-March quarter with average apartment prices rising by 10 percent and average villa prices surging by 20.1 percent.The growth we are seeing can be tied to the recent policy measures by the government. According to many experts and analysts, this strong growth trend will continue throughout this year as many of the Government’s policy measures such as visa reforms and changes in the work week will boost confidence in investors and end users alike. Real estate consultants in Dubai believe that further to this, the overall ease of doing business, the revival of economic activity post-Covid, and the Government’s overall economic vision and concrete plans will push the sector into further growth.One caveat to this which may hinder growth is the high-interest rates and rising inflation, however, given the robust economic policies, the real estate industry should be able to perform strongly and provide investors and end-users with more than decent ROI.While Dubai has shown steady growth throughout 2021 and into Q1 of 2022; Sharjah and Abu Dhabi have also impressed their respective growth trends. Both Abu Dhabi and Sharjah are expected to continue and even improve their performance throughout 2022.In terms of transactions, the Dubai real estate sector has registered an impressive 19,009 transactions in the period Jan-Mar 2022. These numbers are the highest ever in the first quarter of any year.The CBRE report said total transaction volumes recorded 75.1 percent year-on-year growth during the quarter with off-plan and ready transactions increasing by 114.9 percent and 52.9 percent, respectively.The secondary market accounted for 56.1 percent of total transactions during the period and off-plan properties accounted for 43.9 percent of the total.Overall the real estate market in Dubai and even Sharjah and Abu Dhabi is a very viable investment opportunity for investors and end-users alike and now is the right time to get in and ride the upward trend which will continue for the rest 0f 2022.Ismail Al Hammadi is an Emirati real estate consultant in Dubai who has his finger on the pulse of the real estate market. Whatever real estate investment you have in mind, Ismail Al Hammadi will guide you through the process to ensure your goals are met.
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