As mentioned in many news sources the Dubai Property Market is extremely healthy, particularly the luxury sector. Contributing factors are new visa regulations, supply, demand for more sq ft per $, want for a different lifestyle after surviving COVID, and many more good, and bad, occurances across the global economy.
The Demographic report issued from Dubai Statistics Center stated that the population of Dubai reached 3,411,200 at the end of 2020 with an increase of 55,300 comparing to the previous year, and a growth rate of 1.63%. 2022 has seen this number surpass 3,500,000.
For the first time in Dubai’s short real estate history, the end user market has surpassed off plan purchases from 2020 through to the end of 2021, mortgage registrations more than doubled on the same period with the majority buying into the villa/townhouse market.
The number of properties in Dubai has increased slowly compared to the amount of residents currently standing at 743,000 properties, leaving a demand, particularly for end users in Villa and Townhouses. Prices have doubled, in some cases, for example…. a 3 Bedroom Villa in Cherrywoods by Meraas was sold off plan in Jan 2019 for AED1,556,000 with a resale in September 2021 (prior to handover) for a 28% increase.
The million dollar question that is always asked is will this last? As report in the UBS Global Index Report in 2021, Dubai was the only ‘undervalued’ major city in the top 25, the above shows the rebalancing of demand and supply which has been accelerated by the great management of the handling of the global pandemic, slowing supply and opening up regulations for people to ‘work from Dubai’, longer visa, tax free income and so on….
With room to grow, the below shows that in April 2022 pricing still currently has a long way to go to hit the last peak of sale price per sq ft in 2014/15.
Supply – Expected handovers
2022 – 37,018 units – 24,165 Apartments – 9,232 Villas – 775 Townhouses
2023 – 29,694 units – 22,315 Apartments – 2,874 Villas – 2,449 Townhouses
2024 – 84,471 units – 67,307 Apartments – 5,461 Villas – 5,343 Townhouses
2025 – 12,283 units – 5,749 Apartments – 2,320 Villas – 4,198 Townhouses
2026 – 964 units – 765 Apartments – 0 – 196 Townhouses
Demand
Lead generations spiked from October 2021 and continued through to the present day, the main areas for buyers since Jan 2022 are:
Top Searched Areas:
Apartments – Dubai Marina 16.4% – Downtown Dubai 12.8% – Palm Jumeirah 8.7% – Buisness Bay 7.1% – Keywords – Sea View, furnished, beach, payment plan, brand new, vacant
Villa/Townhouses – Dubai Hills Estate 9.7% – Palm Jumeirah 7% – Arabian Ranches 6% – Damac Hills – 4.2% – The Springs 3.9% – Keywords – Upgraded, corner, single row, pool, payment plan.
IN THE NEWS
At Dh180m, Dubai’s costliest penthouse is nearing completion – and buyers are circling – Royal Atlantis Resort & Residences on the Palm.
Real estate investors are eligible for a visa if they fulfil the below criteria: Invest in a property of a gross value of not less than AED 2 million. If the property or portfolio of properties are mortgaged, a minimum cash down payment of AED 2 million of the value is required to be eligible for the visa.
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Compiled by Laura Victoria Adams
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