When it comes to real estate investments, Dubai is a popular choice among investors, especially those looking for beautiful apartments and luxury villas. Dubai has emerged mostly unscathed from the economic downturn which negatively impacted most real estate markets. The real estate prices here have started rising again after a hiatus of six long years, but the most encouraging news is that most experts believe this trend is here to stay and will only get stronger hereafter.
For sure, the opening of the international border post-covid has played a big role in the real estate upsurge. As soon as the government reopened the borders, investors from all over the world have shown a lot of interest in investing in the UAE and Dubai in particular.
So, is it a good time to invest in Dubai’s property market?
If the real estate trends for Q1 2022 are anything to go by, the answer is a resounding ‘YES.’
In this post, we will give you the lowdown on the most recent Dubai real estate statistics, besides sharing the outlook for the rest of 2022 and beyond and the best places to invest in a property in Dubai.
Dubai Real Estate Trends for Q1 2022
First things first, the going has been simply great for Dubai’s real estate market in the first quarter of 2022, with the total transaction volume crossing 7,800 in March. That’s an increase of a whopping 83.5% on a year-to-year basis. According to experts, the Q1 2022 is the record first quarter as far as the total transaction volume is concerned.
What’s more, the off-plans sales saw an uptick of a staggering 94.6%. The secondary market sales saw a massive increase as well. In the Q1 of 2022, the secondary market sales increased by an impressive 76.1%.
The average property rates also saw an increase during the first quarter of 2022. They rose by almost 11% on year to year basis. While the average villa rates increased by roughly 20%, the average apartment rates were up 10%. This just proves that now is the right time to invest in real estate in Dubai. If you pick a favorable location, you can expect a 10% return on your investment in just a year, which is not shabby at all.
So, which are the areas that recorded the highest average sales rate per square foot in the apartment and villa segments? In the former segment, Downtown Dubai has come on the top, whereas Palm Jumeirah leads the pack in the latter.
The average rents have also seen an uptick this year. Compared to last year, the average rents have gone up by nearly 13%, with villas becoming more expensive by roughly 22% on average and apartments by 11.7%. Palm Jumeirah commanded the highest average annual villa and apartment rents in the first quarter of 2022. On average, the annual rent in this part of the Dubai was $53,766.
What’s the forecast for the rest of 2022 like?
These favorable trends will continue in 2022, according to experts. There are many reasons why real estate pundits are highly optimistic about Dubai. These include, among others, the following:
- Robust economy
- Affordable mortgage rates
- Favorable tax policies
- High return of investment (ROI)
While many real estate markets are slow in recovering or still in downturn, Dubai is a welcome exception. Thanks to many reforms proposed by the government and the trust shown by global real estate investors, the Dubai real estate market is expected to go from strength to strength.
Which are the best areas in Dubai for investing in real estate?
Some of the top locations for investing in property in Dubai are as follows:
- MBR City – Located close to the Downtown area and featuring a mix of residential and commercial communities, MBR City is one of the best places to invest in real estate in Dubai.
- Dubai Downtown – Home to Dubai’s most beautifully landscaped promenades, defining landmarks, and impressive walkways, Dubai Downtown promises a handsome return on your real estate investment.
- Jumeirah Village Circle – Whether you are looking for reasonably priced studios or ultra-modern apartments, JVC is a top choice, especially if you relish proximity to a range of outdoors and retail amenities.
- Palm Jumeirah – An upscale location and a slew of exciting projects makes Palm Jumeirah one of top places to invest in the city.
For more information about Dubai real estate investment opportunities, do not hesitate to contact Ellington Properties, our property consultants will be glad to help.
