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Dubai has become the world’s most sought-after place among international home buyers and investors. The market of real estate in Dubai continues to grow thanks to the numerous investment-attractive opportunities, the climate and the transparent investment processes. The large worldwide investments in 2022 ensure that Dubai, and its new development projects, are confident of the demand in 2023.
In this article, you’ll find a list of the most active buyers of the Dubai property market in 2022 and the most popular types of properties.
Content:
- Real estate market situation at the end of the year
- Top home buyers
- High demand for the premium segment
- What to expect in 2023?
- We will help you purchase real estate in Dubai
Real estate market situation at the end of the year
Dubai's real estate sector has been successful in the number of completed transactions. In the third quarter, local and international buyers purchased 22,895 real estate units - 61% more than in the third quarter of 2021.
It’s reported that in the fourth quarter of 2022, the total sales in the emirate increased by 65% year-on-year and by 15% quarterly. Despite the rise in interest rates, the mortgage activity in the market grew by 2%, quarter by quarter.
In total, Dubai recorded 97,252 real estate transactions in 2022, worth AED 265 billion ($72 billion) - 59.5% more than in 2021.
In general, real estate sales in the UAE and their value rose exceedingly — by 61% compared to last year. Palm Jebel Ali Island, another artificial palm tree-shaped archipelago, is likely to give the market an even greater boost.
Top home buyers
When it comes to classifying both potential and existing buyers of real estate in Dubai, it’s clear that the Europeans have dominated the market since early 2022. The geopolitical tensions and economic instability in the world have increased the migration of Europeans to the UAE, putting Russian real estate buyers in the spotlight, in the foreign buyers’ category.
The Indians were the leading foreign property buyers in Dubai in the first half of 2022, followed by the residents of the UK, Italy, Russia, and France. However, the scenario has changed: the Russians have overtaken the Indians and become the best buyers of the emirate, followed by the UK, ranking second. India, Germany, France, the USA, Pakistan, Lebanon, Canada and Romania are among the top property buyers in Dubai.
12 months ago, the Russians ranked 4th amongst the top home buyers in the UAE. According to the latest data, they came out on top. In Dubai, non-resident buyers from Russia bought 11% more properties in the third quarter of 2022 than in the second quarter.
Dubai has become a business and investment hub thanks to its well-developed infrastructure, tax-free status, safe environment, new investment-related residence visa options and excellent business opportunities. Foreign investors come to the emirate from all over the world to start a new business or invest in Dubai’s real estate.
It’s noteworthy that the number of real estate transactions in the emirate has increased sharply against the backdrop of economic recovery. Most local real estate agents believe that the same trend will continue in 2023 and beyond.
Super-rich property buyers from Russia, the UK, the USA, India, Canada and Pakistan will continue to invest in houses and apartments in Dubai. Thanks to the timely reforms and directives of the UAE government, as well as the strengthening of its revolutionary steps, (including golden visa options and a variety of investment opportunities with the EXPO 2020), the real estate sector has achieved a higher volume of transactions.
High demand for the premium segment
In the 12 months to November 2022, the average prices rose by 9.5%, while the average prices for apartments and villas in Dubai increased by 9% and 12.7%, respectively.
The average asking rent grew by 27.3% in the year to November 2022, while the average rent for apartments increased by 27.6%, and the average rent for villas rose by 25.4%.
Apartments for sale in Palm Jumeirah showed a strong price increase of 10%. The island continues to attract great interest and prices and shows no signs of slowing down.
In the fourth quarter of 2022, the apartment prices in Damac Hills and Mohammed bin Rashid City grew by 7% and 6%, respectively. Prices in Dubai Studio City and Al Khail Heights grew more moderately – by 3%. Property prices in Culture Village, JBR, Jumeirah Village Triangle and Dubai Investment Park for the last quarter of last year fell by 11%, 10%, 9%, 5% and 4%, respectively.
What to expect in 2023?
Dubai's real estate market will also continue to grow as the population grows. According to some reports, the volume of annual transactions for the first time exceeded AED 500 billion in the previous year. After a huge increase of 76.5% compared to 2021, the total value of transactions in 2022 reached AED 528 billion.
With the increasing demand for population growth, these figures are expected to rise in 2023.
Dubai is ready to attract more investors, entrepreneurs, job-seeking specialists, and those striving for a high-class lifestyle. This will eventually lead to growth in various sectors, including real estate, which is showing impressive levels.
We will help you purchase real estate in Dubai
The search for dream real estate in the UAE begins in Emirates.Estate! Our database contains hundreds of properties in diverse parts of the United Arab Emirates and popular areas of Dubai. If you need advice on how to find and purchase a property for living or investment, please contact our manager. The specialist will answer your questions and arrange a safe transaction with favourable terms for you!
