Dubai’s residential market had a great last year. But the party is not yet over. All signs indicate that the good run will continue in 2022 and beyond. Obviously, this is awesome news for all those who want to invest in Dubai real estate.
Dubai’s property prices will keep on rising in 2022, which is in line with what happened in 2021. The same holds true for rents in the residential market, which will continue rising this year.
According to real estate experts, the Dubai’s real estate market will see moderate increases in property prices and rents in 2022. Thanks to these encouraging signs, more new projects will get launched this year.
It’s no secret that the global pandemic caused a slowdown in the real estate markets across the world. Dubai’s real estate market was no exception, but things have shaped up nicely since then, much thanks to UAE’s strong economy and various positive steps taken by the government to boost the property market.
Some other developments that augur well for Dubai’s real estate market future include:
- Geopolitical tensions in Eastern Europe will strengthen Dubai’s reputation as a safe haven, which in turn will boost the demand for residential properties further
- High oil prices will ensure that investors’ sentiment in this region remains positive
- A wide range of properties, ranging from luxurious penthouses to ultra-modern apartments, ensures that all types of investors can find a suitable property in Dubai
On the back of a buoyant economy, it’s easy to assume that 2022 will be as good a year as 2021. While things are moving in the right direction, that is not likely to happen in the exact same way.
2021 was an exceptionally good year, with real estate prices rising by a whopping 60%. Also 2021 was the year of Expo with all its massively positive impact on the UAE’s economy overall. In 2022, the real estate prices will continue to rise, but the increase will not be as much as it was in 2021.
Despite a substantial rise in real estate prices in 2021, real estate properties in Dubai are still relatively affordable. Even now, the prices are 25% to 30% less than 2014 levels. This is another reason behind the surge in demand for residential properties.
With that said, which are the best areas for buying a residential property in Dubai? Or are all areas giving similar returns?
As expected, some neighborhoods posted better numbers in 2021 and the first half of 2022 than others. Leading the list are locations such as Palm Jumeirah, Downtown Dubai, MBR City, and JVC.
As a matter of fact, Palm Jumeirah apartments registered an impressive 4.2% increase on a month-to-month basis in May, 2022. Villa prices in Palm Jumeirah — often billed as the Eighth Wonder of the World — rose by 5% in May. Properties in MBR, JVC, and Downtown Dubai have posted similar increases.
The fact that these regions continue to be popular among global investors is not surprising. After all, all these regions offer great amenities and a range of real estate properties to choose from. For example, you will be hard pressed to find a better beachfront lifestyle than the one Palm Jumeirah offers. Each villa in Palm Jumeirah has private beach access. Apart from amazing villas, buyers can invest in penthouses and townhouses in Palm Jumeirah. Living in this part of Dubai is an experience unlike any other, much thanks to the combination of a calm beachfront ambience with a thriving lifestyle.
Downtown Dubai, in contrast, is known for spacious and superbly-designed apartments. It is the perfect place for both families and singles. The area boasts of not only a vibrant night-life, but it has also many top schools. Some of the best bars and dining options in the entire Dubai are located in and around the Downtown area. What’s more, since it is near Jumeirah Beach, it is also an awesome location for beach lovers.
Like Palm Jumeirah and Downtown Dubai, other areas mentioned in this post also have a lot going for them. All these locations are ideal for both residing and investing. And since experts are of the opinion that Dubai property prices will continue to rise in the latter half of 2022 and over the next three to four years, now is a great time to invest.
