Dubai real estate offers investors long-term returns even with a strong dollar.
Dubai's real estate market is expanding as local and international buyers are attracted by investor-centric policies. This fact was recently confirmed when Dubai real estate reported sales of Dh22.7 billion, the highest figures in the past 13 years.
The city's bankable location, robust investment and rental yields, capital growth, and laws are to blame for this. The way Dubai handled the pandemic, luring in the world's super-rich and giving the real estate market a significant boost, is a case study in and of itself. The momentum will continue over the coming years depending on how Dubai takes advantage of the World Cup in Qatar.
Affordable real estate in Dubai has seen average price increases of up to 8%. Rates in upscale areas increased by up to 19%, according to Zoom Property Insights. High-net-worth investors still favor Arabian Ranches, Dubai Hills Estate, Downtown Dubai, and Dubai Marina.
"The fact that key areas are performing up to expectations is unquestionably encouraging for Dubai real estate. While Dubai's luxury property market has been driven by rising demand and prices, the expansion of the affordable property market shows a more balanced performance. With this strong momentum, 2022 will undoubtedly end with a record-breaking year for Dubai real estate, according to Shobeiry.
According to the Dubai Land Department, August had the highest volume of sales in 12 years, with 9,720 transactions totaling about Dh24.3 billion. With more than 67,000 transactions and a total sales value that exceeded Dh180 billion in the first nine months, this year's first nine months saw the highest sales value ever. According to the most recent data provided by the Dubai Land Department, the previous nine-month high sales record for Dubai was Dh116 billion.
Dubai's property sector has seen a huge influx of new capital and a relatively cautious release of new supply by developers. The economy is on track to clock its fastest annual economic growth in over a decade in 2022, driven by a strong upswing in oil and non-oil sectors.
According to Zoom, Business Bay remained one of the most sought-after areas for affordable apartments during H1 2022, despite a price increase of nearly 6.4%. The average cost per square foot increased to Dh1,436 as a result of this increase. JLT and JVC came in second and third, respectively, with price increases of 5.7 and 2.8. In the former, the average property price per square foot stayed at Dh987, while it increased by Dh872 in the latter. Additionally, average prices in Dubai Sports City increased by 3.1% to Dh626.
JVC produced strong numbers for affordable villas, with a 7.7% price increase, as the average price increased to Dh660. Similar to this, Dubailand saw a 5.7% price increase, bringing the average cost to Dh816. Dama Hills (with a 5.25 percent increase and a Dh 1,035 average price) and The Springs (with a 1.65 percent increase and a Dh 1,128 average price) were also notable areas for low-cost villas in H1, 2022.
The average price per square foot for areas with luxury apartments increased the most in Downtown Dubai, by 6.7%, to Dh2,237 during the first half. Dubai Marina came in second, with a price increase of almost 6% and a price per square foot of Dh1,459. With a 5.95% increase, Dubai Hills Estate held onto third place in the ranking. In this neighborhood, the average price per square foot was Dh1,491.
In addition to the aforementioned, Zoom Property Insights reports that prices for luxury apartments in Palm Jumeriah and JBR increased during the first half of the year.
The Palm Jumeirah luxury villa market saw the highest price growth, at just over 18%. In this prestigious neighborhood, the average property price per square foot has reached Dh 3,619.
The only other neighborhood to see a double-digit increase in the cost of luxury homes is Dubai Hills Estate. The average price per square foot rose 11.15 percent to Dh1,490. The villa's price for a luxury home has increased by almost 8%, reaching Dh 850.
Things to keep in mind
According to the most recent statistics, luxury villas continue to perform better than other types of real estate, with some localities reporting double-digit growth. Apartments, meanwhile, are catching up. Although uneven in many areas, this growth shows that the market is on the right track and offers many lucrative opportunities for investors and HNWIs.
