Dubai - Property sale trends in the first half of 2022 indicate that average prices of affordable properties in Dubai have increased up to eight per cent while rates in upscale areas surged up to 19 per cent as the emirate’s real estate sector appears to sustain the boom during the coming months regardless of the gloomy global and regional economic outlook.
Arabian Ranches, Dubai Hills Estate, Downtown Dubai, and Dubai Marina have remained the preferred choices among high-net-worth investors, while small-ticket investors focused on suburban areas, such as Dubailand, Damac Hills 2, Business Bay, and Jumeirah Village Circle, according to the Zoom Property Insights.
The Dubai property market will break previous records in 2022, says Ata Shobeiry, CEO of Zoom Property.
“It’s certainly a good sign for Dubai real estate that key areas are performing up to their standards. While the increase in demand and price of luxury properties in Dubai has been driving the market, it’s the growth in the affordable property segment that indicates a well-rounded performance. With this high momentum, 2022 is surely going to conclude on a record-breaking note for Dubai real estate,” Shobeiry said.
Dubai Land Department said that August was the best performing sales month in 12 years, recording 9,720 total sales worth around Dh24.3 billion. In the first nine months, total sales value exceeded Dh180 billion with more than 67,000 transactions, making it the largest sales value ever during the first nine months of the year. Dubai’s previous nine-month top sales record was Dh116 billion, according to the latest data by Dubai Land Department.
Property experts expect the momentum gained by the sector on the back of a series of reforms and pro-investor initiatives would continue through 2022 and 2023. The sector is poised to get an additional boost thanks to a huge influx of new capital and a relatively cautious release of new supply by government and semi-government developers.
Some analysts point out that a reported move by Nakheel Developers to revive Palm Jebel Ali project is emblematic of the rising confidence of the sector in sustaining the boom. 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. Dubai’s largest bank Emirates NBD elevates the country’s growth forecast to seven per cent in 2022, while the World Bank sees the country as the fastest rebounding economy in the GCC.
According to Zoom, with a price increase of nearly 6.4 per cent during H1, Business Bay remained one of the most sought-after areas for affordable apartments during H1, 2022. With this increase, the average price per square foot jumped to Dh1,436. It was followed by JLT and JVC, as both these areas recorded a price increase of 5.7 and 2.8, respectively. The average property price per square foot in the former remained Dh987, while the latter jumped Dh 872. Average prices in Dubai Sports City also rose to Dh626 after an increase of 3.1 per cent.
For affordable villas, JVC, with a 7.7 per cent price increase, produced high numbers as the average prices rose to Dh660. On a similar note, Dubailand recorded a 5.7 per cent price increase, taking the average price to Dh816. Dama Hills (with a 5.25 per cent increase and Dh 1,035 average price) and The Springs (with a 1.65 per cent increase and Dh1,128 average price) were other notable areas for affordable villas in H1, 2022.
Downtown Dubai witnessed the highest price increase of 6.7 per cent during the first half, taking the average price per square foot to Dh2,237 among areas for luxury apartments. It was followed by Dubai Marina with a nearly 6.0 per cent increase and Dh1,459 price per square foot. Dubai Hills Estate remained a close third with a 5.95 per cent increase. The average per square foot in this community was recorded at Dh1,491.
Besides the aforementioned, prices of luxury apartments in Palm Jumeirah and JBR also increased during the first half of the year, according to the Zoom Property Insights.
The highest price increase for luxury villas was noted in Palm Jumeirah at a little over 18 per cent. The average property price in this prime community has reached Dh 3,619 per square foot.
Dubai Hills Estate remains the only other community to hit the double-digit mark in terms of an increase in the prices of luxury homes. With an 11.15 per cent increase, its average price per square foot rose to Dh1,490. Prices of luxury homes in The Villa, with a nearly 8.0 per cent increase, have jumped to Dh 850.
“The latest statistics reveal that luxury villas continue to outperform other properties, with some communities reporting double-digit growth. However, apartments are catching up as well. This growth, although uneven in many areas, depicts the market is on the right track with abundant lucrative options for investors and HNWIs,” Shobeiry said.
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