Dubai’s Real Estate Boom will Continue; 36,000 New Residential Units will be Available in 2022
Despite COVID-19 variants causing market uncertainty, experts predict that Dubai real estate will continue to attract global investors this year, as strategic government initiatives, visa reforms, a resilient economy, and a successful pandemic strategy will continue to attract global investors.
According to the most recent data, lower loan-to-value ratios and increased business resilience have assisted Dubai in reviving strong investment interest in the property sector, which saw a robust recovery across all performance metrics of rents, capital values, and transaction volumes last year.
According to Core's latest Dubai annual report for 2021-22, "the UAE government's continued focus on making the country the most preferred place for tourists, businesses, and residents due to its pioneering policies, economic and visa reforms, and agile and safe management of the pandemic without affecting business continuity is expected to continue underpinning the real estate market and bolster demand across asset classes."
37,000 residential units, including 5,900 villas, will be delivered in 2021, with a similar number of units expected to be delivered this year. According to the report, "the Dubai real estate market is experiencing a strong sales and rental price recovery."
Further revisions to supply forecasts are expected as developers continue to calibrate to ever-changing market conditions, according to the firm's annual housing market assessment.
Villa supply shrinks
According to Prathyusha Gurrapu, head of research and advisory at real estate consultancy Core, villa prices and rents have risen sharply as supply is limited in centrally located and well-established villa communities.
She stated that the city-wide villa sales price average increased by 22% year on year, despite being 16% lower than the 2014 peak, demonstrating that values are still competitively priced and potentially have more room for growth.
"Mirroring the city's soaring demand for villas, city-wide average villa rents were up by 21% year on year, while average apartment rents saw a modest 3% increase," Gurrapu told Khaleej Times on Thursday.
The market's recovery continues
According to ValuStrat, the majority of apartments delivered last year were in Dubailand (26%), Jumeirah Village Circle (17%), and Business Bay (12%), while more than 82% of villas finished in Dubailand, specifically in Akoya Oxygen, Serena, Town Square, and Villanova.
Despite the coronavirus pandemic, Ata Shobeiry, CEO of Zoom Property, believes the market is on the mend.
Shobeiry told Khaleej Times that "with around 36,000 more units expected to be delivered in 2022, it can be forecasted that the gap between supply and demand will narrow."
Source: Khaleej Times