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2021 showed us that the Dubai government’s anti-Covid-19 policies and incentives to support the economy and real estate sector worked well. The effects of the coronavirus crisis were successfully overcome. But, more than that, new real estate transaction records were set.
As sales grow, so do prices for property in Dubai. You can find out what to expect from the market in the future and what trends will be seen throughout 2022 in this article.
Content:
- Past results and how they impacted the Dubai property market
- How much is property in Dubai?
- Dubai’s real estate market prospects in 2022-2023
- Help and support from our experts
Past results and how they impacted the Dubai property market
In 2021, Dubai significantly strengthened its position as one of the world’s most attractive cities for expats and business people. The reasons for this were:
- High quality of life and level of technological development;
- Safe urban environment;
- Excellent infrastructure;
- Labour and visa reforms;
- No income taxes;
- Successful fight against Covid-19.
A stable economy is good grounds for business development. As analysts say, this should grow to 4.5% during 2022. The real estate market in the UAE is in a strong position.
To understand what’ll happen to real estate in Dubai in 2022-23, we’ll take a look at previous years’ results.
According to the analytical service Property Monitor, total property sales in Dubai for 2021 amounted to about AED 151 billion ($41.1 billion). This was a success for the market since 2009, surpassing 2020’s figures by 110.19%.
61,241 transactions were made in 2021 – the highest figure since 2013 and 74.77% more than in 2020.
Around 60% of the total real estate transactions in 2021 were for ready properties, while the remaining 40% were for off-plan projects.
This shows us that housing in Dubai is in high demand and will stay popular over the next few years. And these are the first months of 2022’s results.
High purchasing activity was triggered by changes in property prices in the United Arab Emirates. In January 2022, the average cost of housing in Dubai was AED 10,650 ($2,900) per square metre, which is 1.47% higher than the previous month and 17.6% higher compared to the previous year.
The Arab real estate market’s features by sector
Despite the growing popularity of the villa sector, many people want to buy an apartment in Dubai. Apartments remain a sought-after asset in this emirate’s market.
Why do people want them?
- Easy access to urban infrastructure;
- Close proximity to work.
Dubai’s property prices are rising steadily but this isn’t stopping people from buying apartments and villas. Because of this, 2022 isn’t dropping its position even though 2021 was also successful. In January 2022, there were 5,797 property sales and purchase transactions totalling AED 16.69 billion ($4.54 billion).
How much is property in Dubai?
As of January 2022, prices were distributed as follows:
- The average price for apartments in Dubai was AED 1.2 million ($326,500).
- The average cost of a villa in Dubai was AED 1.9 million ($517,500).
- The average cost of commercial real estate was AED 746,000 ($203,000).
- The average cost of a land plot was AED 4.9 million ($1.33 million).
Compared to 2021, apartment prices increased by 42.6%, while villa prices decreased by 13.6%. The cost of commercial real estate increased by 2.7%, and land plots saw a rise of 42.9%.
Dubai’s real estate market prospects in 2022-2023
According to analysts’ forecasts, Dubai’s property prices will continue rising for at least the next 2 years. By the end of 2022, housing prices are expected to increase by another 3% and by another 2.5% next year.
Real estate prices in Dubai are changing for the better after the crisis. Despite the record drop in prices between 2014 and 2020, 2021 housing prices in the emirate increased from 6% to 20% and continue to rise.
Positive factors:
- People buy housing to resell and make a profit. Demand is always growing because of this;
- Currently, property values are 1/5 higher than in the 2010 credit crisis;
- Over 35,000 new property units on the market.
In 2022–2023, a number of 53,000 new properties will be commissioned in the city. Part of this housing is already being completed and put onto the market. The development of new areas will meet current demands and bring the market to a new level.
Help and support from our experts
Look for profitable offers from proven developers and agencies on the Emirates.Estate website right now! You can find out the current value of real estate in Dubai in euros and dollars, see photos, look at descriptions, and get familiar with different areas in more detail in our catalogue. If you need it, our company’s specialists will help you choose housing in Dubai and buy it safely.
