The Dubai property market posts a strong growth in the first half of 2022
The fortune of the Dubai property market changed for good in 2021, but the good run is far from over. In fact, all trends confirm that the Dubai real estate market will continue its uptrend and the positive momentum even beyond 2022.
As far as the first half of 2022 is concerned, the growth has been impressive, to say the least.
- The first half of 2022 recorded no fewer than 43.2K transactions, having a total value of AED 115 billion
- June was the best month in the first half of 2022 by a country mile. As a matter of fact, June recorded the best sales figure since 2009, which is saying a lot
- After recording an increase of a whopping 23%, real estate prices in the first half of 2022 averaged at AED 1,140 per sq foot
- The top-ranking communities in the first half of 2022 are Business Bay, Al Hebiah Fifth, Dubai Marina, Downtown Dubai, and Jumeirah Village Circle. While real estate transactions registered an increase in virtually every community, these communities registered the highest number of transactions in the first half of 2022
- Apart from these names, other top-performing areas are Dubai Creek Harbor, Al Merkadh, and Palm Jumeirah. All these communities produced significant results, which augur well for the future of the Dubai real estate market
If you look at year-on-year growth, data confirms that the Dubai real estate market has come into its own. The first half of this year concluded on an exceptionally strong note, recording a staggering 43.2K transactions. The total value of these transactions is estimated to be AED 115 billion. The sales volume registered a jaw-dropping 60% growth on a year-on-year basis, which is great going any way you look at it. In terms of the sales value, the growth is even more significant. In the first half of 2022, the sales jumped by almost 88% on a year-to-year basis.
The growth was quite evenly distributed across the first six months, but it was June that recorded the highest sales volumes. Compared to 2021, June 2022 recorded an unparalleled 41% growth in sales volumes, breaking a 13-year record. As a matter of fact, June 2022 was the best month for the Dubai real estate market since 2009.
All types of residential properties saw a surge in the demand. For instance, the apartment niche registered 5,880 transactions in the first half of 2022. These transactions are valued at roughly AED 11 billion. The villa segment, which is especially popular among rich expats, recorded roughly 2,000 transactions in the first half of 2022. The total value of these transactions was AED 7 billion.
It is not just the sales transactions that went up in the first half of this year; the average property rates also saw a significant increase. The average price per sq foot is now AED 1,140, which is an increase of 23% on n year-to-year basis.
While there is no doubt that the first half of 2022 has been great for Dubai’s real estate market, in the light of global headwinds, the question on everyone’s lips is whether the second half will be just as impressive. Expethkkknion that the growth will not slow down, despite the global recession. For sure, Dubai is not immune to negative global trends, but Dubai‘s real estate market is in robust shape and very popular among foreign investors. Because of these positive factors, Dubai’s property market will be able to perform much better than other real estate markets in the near future. Also, the impressive first half is a strong indication that Dubai’s property market is well-placed to meet global challenges.
All in all, the Dubai real estate sector will continue the upward trajectory and is very likely to end 2022 on an even better note.
Top performers in the First Half of 2022
When it comes to top-performing areas of the first half of 2022, Business Bay leads the pack, recording a total of 4,310 transactions. On a year-to-year basis, Business Bay recorded a staggering 117% jump. Dubai Marina is placed second, with a total of 3,735 transactions. Other top performers include Al Hebiah Fifth (3,150 transactions), Jumeirah Village Circle (2,900 transactions), and Downtown Dubai (2,585 transactions).