Dubai real estate sector hits $65bn in 88,000 transactions over record-breaking year
Dubai’s real estate sector hit a record-breaking $65bn from more than 88,000 transactions this year, according to research by Property Finder.
According to its Zeitgeist 2022 report Dubai’s registered sales reached 88,028 transactions as of November 2022, up from 60,258 transactions in 2021.
This represents a significant increase of 46% and surpasses the market peak in 2013 by 38%.
Dubai real estate growth
The value of Dubai’s real estate market surpassed $65bn (AED240bn) this year until the end of December. The figure represents a 61% gain compared to 2021.
Dubai’s real estate growth has been fuelled by the growth of off-plan deals, which climbed by 86% compared to 2021.
Off-plan transactions value made up 44% of all transactions in 2022, up from 40% in 2021 as measured by volume, in the market, which saw a shift between these two performance categories.
In contrast to 2021, when transactions were valued at about $12.1bn (AED44.6bn), the value of transactions climbed to 35% of all transactions by reaching a total of $22.6bn (AED83bn).
The first sales transactions for apartments saw the largest numbers (in terms of value).
In contrast, the overall value of the transactions for villas/townhouses beat the previous mark established in 2021 to be the highest ever recorded.
Scott Bond, Country Manager at Property Finder, said: “Due to the volatile market conditions, 2022 saw shifts in consumer behaviour. The market had a record-breaking performance due to rising demand, recent events and initiatives like the FIFA World Cup, the golden visa, and larger attempts to shift to a digitally driven economy.
“Hence, garnering more interest in the off-plan market as evident in our search trends on our portal as well,” said.
The most frequently searched apartment neighbourhoods in 2022 were in the city’s core, which continues to include the
- Palm Jumeirah
- Downtown Dubai
- Jumeirah Village Circle
- Jumeirah Beach Residences
- Jumeirah Lakes Towers.
Meanwhile, the most sought-after villa and townhouse areas are:
- Dubai Hills Estate
- Palm Jumeirah
- Arabian Ranches
- Arabian Ranches 2
- DAMAC Hills (Akoya by DAMAC)
- Akoya
- Mohamed Bin Rashid
- The Springs
Dubai’s rich lifestyle, visa schemes, real estate among other noteworthy attractions have roped in investors at premium-end of the market.
According to a report by the Financial Times, “when the first of its 231 deluxe residences was offered for sale seven years ago, a two-bedroom apartment could be bought for a mere AED5.5 million ($1.5 million).”
The report said that demand has soared since the pandemic, “with owners inundated with requests to sell homes that come complete with swimming pools and terraces offering panoramic views.”
