During Q2, the secondary market continues to thrive even though there have been many off-plan projects selling out within hours of release. We have noted a continued influx of multinational expats looking make home in Dubai along with confidence from investors in the Dubai Property market.
There are many factors why people are choosing Dubai, to name a few, safety, ease of visa regulations, tax free income, lifestyle amongst others. With rents back on the rise since 2020, the average ROI is up to 6-7% net again on long term leases with short term still standing strong at up to 10% net.
The main question being asked is how long will this last? The UBS report of 2021 marked Dubai as the most ‘undervalued’ top 25 Countries to invest in Real Estate, with property prices rising we are still only seeing average pricing at 50% of what 2015 price per sq ft was. With this in mind, and increase of population, low handover numbers and constant interest in the region, my opinion is, we will see a stabilization but a slim chance for any kind of down turn.
Sales Transactions at the Dubai Land Department
Q2 – 2021
Overall – 13,636 – Apartments – 9,161 – Villa/TH – 4,475
Off Plan – 9,161 – Apartments – 4,502 – Villa/TH – 1,121
Secondary – 8,013 – Apartments – 4,659 – Villa/TH – 3,354
Q2 – 2022 – 31% increase overall Y onY
Overall – 19,859 – Apartments – 13,856 – Villa/TH – 6,003
Off Plan – 8,369 – Apartments – 6,832 – Villa/TH – 1,537
Secondary – 11,490 – Apartments – 47,024 – Villa/TH – 4,466
The 2040 vision is very much on track, currently Dubai has a population of a little over 3.5 million residents with only 550,000 ready properties and a forecast of nearly 6 million residents by 2040 there is allot of housing required to meet the demand.
Supply
Expect supply, already launched and approved are as follows: 2022 – 35,225, 2023 – 29,977, 2024 – 84,334 – 2025 – 14,342 – 2026 – 1,435. A total of 165,312 properties planned and under construction.
Migration
With rents rising the population is moving, with data from DEWA ‘move in and move out’ requests we can follow the flow of residents. In addition to rent increases the search top keyword for tenants is ‘brand new’ which will also contribute to the movement with 626 new properties handed over in the past quarter in Arjan and 838 in JVC.
Total number of Move in requests in Q2 2022 – 52,544
Total number of Move out requests in Q2 2022 – 49,961
Top increased areas:
Arjan + 1,154
JVC + 749
Arabian Ranches 3, The Villa, Villanova +592
JLT, Jumeirah Park, Jumeirah Islands + 394
Decreased areas:
Marina -643
Emirates Hills, Meadows, Springs -449
Rashid Yachts and Marina
Starting prices at AED1,100,000 – Payment Plan 10% deposit, 60% during completion and 30% on handover, expected 2025.
This new ‘Marina’ style living next to Jumeirah 1 by Emaar is an impressive new master plan of beachfront living.
If the projects neighbor, La Mer, launched 1 bedroom apartments around the AED1.3 mark (2018 registered) and are currently transacting at AED1,875 – a 30% increase.
Click here for more info:
https://dxb-realestate.com/rashid-yachts-marina/?utm_source=emailer+mc&utm_medium=email+&utm_campaign=general+emailer
Please get in touch if you would like any advice on your property or an updated property valuation.
Laura Victoria Adams
UBS Report https://theagentdubai.com/2021/10/23/ubs-global-real-estate-bubble-index-2021/
Data collated from propertymonitor.ae
Very curious to know data is the population growth trajectory based on?
It’s the 2040 plan from the uae government
https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/local-governments-strategies-and-plans/dubai-2040-urban-master-plan