According to a recent report, the Dubai real estate market saw an increase in the new project launches in the first quarter of 2022, as the emirate emerged as a preferred destination for high net worth individuals, including millionaires and entrepreneurs, following the successful handling of the Covid-19 pandemic, a pro-business environment, and recent visa reforms.
The number of new project announcements in the January-March quarter exceeded pre-pandemic levels, showing market optimism. During the quarter, over 20 new projects totaling over 6,500 residential units were unveiled to meet the increased demand from investors.
Several well-known developers’ projects are seeing high absorption, boosting off-plan sales and indicating Dubai’s restored investment momentum and consumer confidence, according to Prathyusha Gurrapu, head of research and consultancy at Core.
“Coming off from historically low new project announcements over the last few years due to Covid-19 and dampened market conditions, recent quarters have seen a sharp uptick in the new project launches with the first quarter of 2022 launch volumes surpassing pre-pandemic level, underpinned by the overall positive market sentiment,” Gurrapu said.
New projects, branded residences
The real estate consultancy research highlighted some of the most notable project announcements in the first quarter, as well as how the emirate continues to lead the world in branded housing market penetration.
“Beach Mansions in Dubai Harbour by Emaar, La Violeta by Dubai Properties in Villanova, and Peninsula by Select Group in Business Bay are some of the new projects announced in the first quarter,” Core said in a report on Wednesday.
Six Senses Residences on Palm Jumeirah, St Regis the Residences, Downtown Dubai, and the Ritz Carlton Residences Creekside were among the key projects unveiled during the quarter, according to the study.
“With demand outstripping supply in key segments, we expect an upward trajectory in inquiries, transaction volumes, prices, and occupancy levels to continue over the remainder of 2022, albeit with an interim marginal slow down during the summer months,” the Core report said.
Rising population, business reforms
Rising pricing and demand, according to Ata Shobeiry, CEO of Zoom Property, have pushed developers to come up with a fresh line-up of real estate projects in Dubai.
“Other key factors include the increasing population in the UAE and the latest business reforms, attracting overseas investors and business. The first quarter already saw the launch of several projects and the delivery of 6,700 units. The rest of the year is also expected to follow the pattern with the anticipated delivery of 31,000 units,” Shobeiry said.
The research cites continuous economic, social, and visa reforms as one of the primary growth drivers for Dubai’s real estate, citing relatively low levels of ultra-prime supply and rising HNI demand as examples.