Introduction
2021 has revealed to us that the Dubai government's anti-Covid-19 policies and incentives to support the economy and real estate sector have worked well. The effects of the coronavirus crisis have been successfully overcome. But Dubai set more than that in 2022, with new 5, 8, and 12-year real estate transaction records.
As sales increase, so do property prices in Dubai. According to the Dubai Land Department (DLD), housing costs in Dubai rose by 33.4% to AED 1,575 ($428.8) per square meter in January 2022 alone. In this article, find out what to expect from the future Dubai real estate market and trends.
Past and Present
Past and Present
In 2021, Dubai significantly strengthened its position as one of the most attractive cities in the world for ex-pats and businesspeople. The reasons for this were:
- High quality of life and level of technological development.
- A safe urban environment.
- Excellent infrastructure.
- Labour and visa reforms.
- No income taxes.
- Successful fight against Covid-19.
A stable economy is a good basis for business development. According to analysts, this should increase to 4.5% during 2022. The property market in the UAE is in a strong position.
To understand what will happen to Dubai real estate in 2022-23, we look at the results of previous years:
- According to a leading Middle East consultancy group valuator, total property sales in Dubai for 2021 will reach approximately AED 151 billion ($41.1). This was the market's best performance since 2009 and outperformed the 2020 indicators by 110%.
- According to some sources, there were 61,241 transactions in 2021 – the highest number since 2013 and 74% more than in 2020.
- Roughly 60% of transactions for 2021 were for ready-made housing and the rest for unplanned properties.
- This shows us that living in Dubai is in high demand and will remain popular for the next few years. And these are the first months of 2022 results.
- High buying activity was triggered by changes in property prices in the United Arab Emirates. According to analytics service Property Monitor, the average housing cost in Dubai was AED 1,575 ($428.8) per square meter in January 2022, or 34.4% year-on-year.
- Premium housing prices rose by more than 35% and in the average price segment by 37.2%. It was 15.7% year-on-year.
Prospects in 2022-23
Prospects in 2022-23
According to Bloomberg, property prices in Dubai will continue to rise for at least the next two years. Housing prices are expected to increase by another 3% by the end of 2022 and by another 2.5% next year.
Property prices in Dubai are changing for the better after the crisis. Despite a record price drop between 2014 and 2020, housing prices in the Emirates increased from 6% to 20% in 2021 and continue rising today.
Positive factors:
Positive factors:
- People buy housing to sell and make money. The demand for this is constantly increasing.
- Currently, property values are 1/5 of what they were during the 2010 credit crunch.
- Over 35,000 new units on the market.
Bloomberg also reports that 53,000 new units will be commissioned in 2022-2023. Part of this housing is already being completed and put on the market. The development of new areas will correspond to current demands and will move the market to a new level.
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