Q3 2022 indicates that Dubai will maintain its status as a stable and growing real estate market.
The pandemic shuttered many an economic dream but also enabled resilience, and it is this trait that has seen Dubai emerge strongly post-pandemic. From the success of Expo 2020 to government reforms like the Golden Visa, Dubai has rebounded with verve.
The landscape remains the same in that India continues to provide the largest source of buyers and investors to the Dubai real estate market, reflecting longstanding cultural and economic ties (the U.K. comes in second).
But Dubai is diversifying its sources of real estate investment as well, with buyers and investors pouring in from places as far-flung as Russia, China, wider Europe and Canada. As a direct result, Q3 2022 happily assumed the mantle of the best-performing quarter in Dubai’s real estate history, with sales reaching a staggering AED 70 billion. This followed an already historic second quarter.
Total number of real estate transactions in Dubai during Q3 2022. Courtesy REIDIN.
Total value of real estate transactions in Dubai during Q3 2022. Courtesy REIDIN.
In apparent proof that this period was not a one-off, October has posted hugely promising figures, with over 8500 transactions recorded – a rise of 62.3% in comparison to the same time period last year. Rental yields have also remained stable and, therefore, attractive, especially when compared to similar luxury markets globally. Indeed, Dubai’s potential yield of up to 8% is amongst the highest globally. Prime areas like the Palm Jumeirah, Emirates Hills and the Jumeirah Golf Estates continue to enjoy the attention of ultra-high-net-worth individuals; the Palm Jumeirah in particular has, in 2022, repeatedly broken the record for the most expensive Dubai property sold.
Total number of real estate transactions in Dubai during October 2022. Courtesy REIDIN.
Total value of real estate transactions in Dubai during October 2022. Courtesy REIDIN.
This consistent performance post-pandemic bodes well for Q4 2022 and beyond. 375 projects, including more than 90,000 units, are expected to be delivered by the year’s end. This is an expectation that will greatly address perhaps Dubai’s only challenge – a lack of inventory in the face of burgeoning demand.
With COVID restrictions now a thing of the past and approximately 4000 new millionaires expected to enter Dubai by the end of 2022, the city’s real estate market is set to enjoy a fertile landscape. Indeed, prices here continue to remain lower than in luxury markets like London, Paris and New York, while inflation is not considered to have a significant impact on market prices or performance.
