Due to many contributing factors, the Dubai Real Estate Market in 2022 saw an increase in demand from overseas investors and end users looking to benefit from the excellent returns, lifestyle, and economy Dubai offers.
The Government has been a key contributor to the strong market as reported in the Economic Times, October 2022 ‘The upturn is a significant departure from the emirate’s two previous market cycles, which were largely linked to buy-to-let or buy-to-flip purchases. Demand for Dubai property is booming as the government’s handling of the pandemic and its liberal visa policies attract more foreign buyers‘
The total number of transactions in the residential sector increased by over 50,000 from 35,121 in 2019 to 86,460 in 2022, and a combined sales value increase of AED150 billion, from AED59.8B in 2019 to AED208.2B in 2022.
Villas and Townhouses remain the highest in demand in both off plan sales and secondary. Developers are struggling to keep up with off-plan releases, in particular Arabian Ranches 3, and Tilal Al Ghaf which all sold out within a few hours of the release and within the secondary market supply is low due to the lack of vacant properties for end users.
There has also been a significant increase in finance registrations from 10,893 in 2019 to 17,222 in 2022, mainly due to people deciding to settle and invest instead of paying rent, which has increased substantially since 2020.
Any market is best predicted by supply and demand, as you can see below a graph by the Dubai Statistics Centre, the population is projected to double by 2040 with the help of the Dubai 2040 Urban Development Plan https://theagentdubai.com/2021/03/15/sheikh-mohammed-launches-mega-dubai-2040-urban-development-plan/
Sales in Figures
Total Sales – Residential
Total Sales – Resale – Residential