Real estate market in Dubai in autumn 2022: statistics, changes and prospects

Mihai-Alexandru Cristea 24/08/2022 | 16:27

Real estate market in Dubai in autumn 2022: statistics, changes and prospects. Who buys luxury property in Dubai? New off-plan projects in Dubai. How is the market changing?


Property market in Dubai is constantly evolving. Just yesterday everybody were seeking apartments in Dubai Creek Harbour and today the hottest trend is some new off-plan project. Let’s have a look at the current state of the market and possible future trends.

Dubai is a leader in international investment

Residential real estate in the UAE continues to be a priority for investment in the international market. The main reasons that contribute to the increase in demand, experts attribute the numerous initiatives of the government and the high level of income.

Reports of consulting companies show growth in all segments of the housing market. This is despite the fact that over the past few months, the the city’s real estate market has faced certain obstacles: e.g., the strengthening of the dollar in the foreign exchange market and rising interest rates.

According to the DLD, in the first 6 months of this year, 60% more property transactions were made than in the same period last year. Of particular note is the overall increase in value, which was recorded at around 85%.

Another trend that predicts a large number of expats to move to the emirate is geopolitical instability, inflation and higher taxes. And given that the government continues to reform the employment system, offering qualified professionals the most loyal conditions for moving, in the near future investments in real estate will become even more profitable.

Who buys luxury property in Dubai

Real estate specialists have drawn a portrait of the buyer of ultra-luxury property in the city. The vast majority of buyers are international investors, representatives of large business communities, owners and shareholders of leading holdings and transnational companies.

The main distinguishing feature of the premium real estate sector is the use of cash. Most buyers purchase properties using instant cash payments. There are small exceptions where buyers use special payment plans, but they pay out all transactions in a very short period of time.

It is also worth noting the fact that most buyers of ultra-luxury housing make a purchase not for investment, but for personal living. 

Despite the relative shortage in the super-premium real estate segment, developers are trying to announce new projects that meet the requirements of modern buyers. And, judging by the announcements, the developers have very ambitious plans to gain trust among the target audience.

New off-plan projects in Dubai

Developers are working hard to keep up with the growing demand for housing. If a couple of years ago, experts expected to overcome barriers due to the COVID-19 pandemic, today demand exceeds all previously known indicators.

Indeed, today there is a significant increase in the number of off-plan projects. Developers are especially focusing on the development of new areas, including:

  • Dubai South, 
  • Dubai Hills, 
  • MBR City.

More and more international investors are paying attention to real estate. This investment asset, unlike many others, gives a stable income confidence, has a very low risk of depreciation. And when it comes to a location to buy real estate, the city has undeniable advantages in the form of additional benefits for investors, a high level of security and an excellent business climate.

It is also worth considering the number of projects that developers announce: a sharp surge in new projects in different segments of the real estate market makes it possible to fully satisfy the needs of potential investors and buyers.

How is the market changing

The Dubai housing market, as well as the needs of potential buyers and investors, is constantly changing. Developers are trying to implement projects, anticipating the desires of consumers. However, the situation on the market is changing very rapidly, which is confirmed by statistics and reports.

  • A particularly high level of demand for apartments was recorded in the Jumeirah area. Here, the average level of sales per square meter stopped at around USD 6112. Speaking about the villa sector, Palm Jumeirah showed the greatest demand: here the average price level per square meter was USD 9,892.
  • Over the past year, the average rent has increased by more than 1/5: by 21.7%. At the same time, the rent depends on the type of real estate: e.g., the cost of renting a villa is growing much more rapidly than the cost of renting apartments.

These statistics indicate a steady increase in demand for properties. And this applies to investment property, and housings that are bought for personal residence. Also, many buyers see the city as a promising place to live in the future, which is an excellent investment strategy. After the purchase, the property can be rented out, and if necessary, having received a residence permit, move directly to Dubai.

Dubai breaks another record

Almost every month, Dubai’s real estate sector breaks new records. One of the latest records was a deal to sell an apartment in a premium residential complex. It is reported that the cost of this property was AED 632 million, which is equivalent to USD 172 million.

Last week’s data provided by the DLD shows a total of 2,509 transactions worth AED 10.9 billion, equivalent to USD 2.97 billion. During the same period, 263 land plots were also sold with a total value of AED 1.46 billion dirhams.

It is worth noting the most popular area where specialists were able to record the most transactions: 

  1. In just one week, 130 transactions were made in the Al Hebiah Fifth area. Their total cost was AED 328 million dirhams. 
  2. Second place was taken by the Jebel Al First area, where 32 transactions were concluded for a total of AED 92 million. 
  3. The top three is completed by the Al Yufrah 2 district, where experts recorded 23 transactions worth a total of AED 28 million.

The report also indicates the number of mortgage loans that were issued for the purchase of property. In one week, the banking structures of the United Arab Emirates financed buyers for AED 5.09 billion, while the largest transaction was a loan of AED 96 million issued for the purchase of land.

Real estate agency in Dubai

If you are planning to buy property in Dubai, please contact the specialists of the Ax Capital real estate agency. Their consultants will tell you about all the features of the market and help you choose the best options for investing in housing.



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Mihai-Alexandru Cristea | 27/11/2023 | 17:41
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