Dubai’s real estate market remained active and strong in the first half of 2022 despite challenges including rising interest rates and a strengthening dollar.
As sales transactions and values remained stable, growth was seen across all market categories. The study states that DLD tracked 37,762 total units sold between January and June of this year. This sets a new record for transactions in the emirate and represents an increase of 60% over the same time period in 2021. Additionally, the total value of sold homes increased by 85% from H1 2021 to H1 2022.
Dubai remained a top destination for investors thanks to its excellent capital growth, high yields, and government-led programmes that encourage investment in the real estate sector.
Commenting on trends in the industry, Group Managing Director of Betterhomes Richard Waind said that prices in the market are showing signs of normalizing. ‘Supply constraints in the secondary market have shown signs of easing in the last six months as sellers have looked to realize recent price increases. Further, developers have responded to the improved market conditions by increasing launches and bolstering the off-plan market.’
‘Globally, many real estate markets are showing signs of slowing down in the face of rising inflation and the inevitable response in the form of rising interest rates. It is important that we do not repeat the mistakes of the past and believe the UAE is impervious to these factors; however, I am confident that our market is uniquely placed to weather any short-term storm and, as we have shown throughout the pandemic, could well be a net beneficiary of global uncertainty,’ Waind added.
Below are the highlights from Betterhomes’ H1 2022 Dubai Real Estate Market Report:
- Total number of units sold increased by 60% versus H1 2021
- Total value increased by 85% versus H1 2021
- Buyer demand increased by 23% versus H1 2021
- Signed MOUs increased by 138% versus H1 2021
- Townhouses saw the highest rise in listings by 141%, followed by apartments with an 18% increase, while villa listings saw a modest growth of 2%.
- Investors made up 68% of all transactions versus end users at 32%
- 31% of transactions were mortgage-backed purchases
- India topped led the top buyers by nationality with the UK, Italy, Russia and France rounding the top five
- Average rental price for apartments and townhouses climbed by
29% and 33% and villas rose by 64%
- Occupancy rates in freehold areas increased to 90% and leasehold areas increased to 86%