The impressive growth was seen in June of 2022, in particular. It received 8850 transactions worth AED 22.10 billion, shattering the previous record by 13 years. This was an increase of almost 41% from June 2021.
In light of this data, it's safe to say that the market is growing and will suffer little to no impact from the current worldwide economic downturn. Further in-depth analysis of data from the Dubai property market over the last several months reveals a dramatic change in buyer interest.
Let's learn more about the Dubai real estate industry and how the demand for homes is developing:
Demand For Real Estate In Dubai Has Significantly Changed
Off-plan vs. Ready Properties
Buyers, especially in low-density regions, are interested in homes with square footage, according to the research. This is one of the factors that is causing the demand for ready-to-move-in homes to increase relative to off plan properties in Dubai.
The rising cost of off plan projects in Dubai is another reason driving consumers into the secondary (ready property) market. More increase is being recorded for these types of properties than for ready ones. Hence, people on a tighter financial footing have begun searching for turnkey homes. Nonetheless, with all their advantages, off-plan houses continue to be favored by investors.
Luxury Real Estate is Increasing
With so many opulent apartments and villas to choose from, Palm Jumeirah real estate continues to be in great demand. While the area's prices are quite high, it nonetheless manages to draw in both investors and end-users. This pattern is repeated in other upscale real estate markets.
Recent real estate trends indicate that Dubai's property market will see a 100% increase in market share this year. Due to supply constraints, there will be a higher demand for high-end real estate. The second half of the year is forecast to see an uptick in demand as a result of the growing number of HNWIs, entrepreneurs, and multimillionaires establishing permanent residences in Dubai.
In 2022, it is predicted that about 4,000 ultra-high-net-worth people would make the move to the UAE, mostly due to the country's expat-friendly regulations. To add fuel to the fire, the newly liberalized regulations regarding company ownership are drawing in a large number of potential business owners.
Villas vs. apartments
Based on information on when projects are expected to be finished in 2022, apartment buildings have emerged as the frontrunners over villas. New villa construction is similarly scarce in comparison to apartment buildings. The year 2022 is only expected to see the delivery of 3.6% of all planned villas; therefore, prices will likely be on the higher end.
Even though new villa and townhome complexes are being introduced at a quick rate in Dubai, the handover is not anticipated until the end of 2024. So, it's safe to assume that the demand for Dubai flats will increase.
Apartments are appealing to both end-users and investors because of their relatively low prices. They are also highly sought after as of the many contemporary conveniences that come standard.
The Rental Market's Shifting Dynamics
The Dubai rental market is likewise expected to see significant shifts in 2022. The rent goes up in some places and down in others. Nonetheless, apartment rents have increased by 21.2% and villa rents by 24.7% during the last year. Apartments in Dubai now rent for an average of AED 85,204 per year, while villas go for an average of AED 255,43.
The Dubai International Financial Center (DIFC), Arjan, Liwan, The Greens, Festival City, and Business Bay are just a few of the other well-known areas where rents have risen. Nonetheless, apartment rents have dropped in Green Community, The Old Town, and Deira.
Conclusion
Overall, the Dubai real estate market is forecast to rise for the rest of the year. Although villas and high-end homes will still dominate, apartment buildings will expand as well.
