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Dubai Real Estate Market broke records in the first quarter of 2022

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In March 2022, Dubai had its best-ever first quarter in terms of residential transactions, with a total volume of 7,865 transactions, up 83.4 percent from a year-earlier quarter.

In the quarter, off-plan sales climbed by 94.6 percent, while secondary market sales increased by 76.1 percent. In the first quarter of 2022, overall transaction volumes hit 19,009, which is the highest number ever recorded in the first quarter.

Despite the continuous rise in the cost of financing and tightening of payment plans. The impact on transactional activity in Dubai’s residential market has yet to be seen.

In fact, the total number of transactions in March reached 7,865, up from 5,598 a month earlier. As a result, this has been the strongest first quarter on record for Dubai in terms of residential transactions. While average prices and average rents continue to increase, we are seeing a moderation in both sales and rental growth rates in the villa segment of the market.

Strong rental returns

The market, according to real estate specialists, offers good rental returns. After a relatively calm Q3, average apartment rents in Dubai increased by 4% in Q4 2021, the highest increase since 2014. According to Research, Dubai’s reputation as a worldwide business hub, competitive real estate pricing, good rental returns, and expanded residency choices make it perfect for new home purchasers.

According to the real estate market, strong returns on investment (ROI) are no longer limited to core sites like Downtown Dubai or Dubai Marina, but can now be found in lively suburban neighborhoods like Sports City, Jumeirah Village Circle, Arjan, Arabian Ranches, and Al Barsha South.

The first quarter of 2022 provided record-breaking results for the Dubai property market, indicating a good year ahead.

After a struggling period, apartment prices have also touched double figures in March while villas continue their dominance with a 20.2 percent growth in price. The market is expected to maintain this high momentum as it continues to capture the interest of foreign investors, particularly in the luxury housing category.

Apartment, villa prices

According to the research, average prices grew by 11.3 percent in the year leading up to March 2022. During this time, average apartment prices climbed by 10%, while average villa prices increased by 20%. The average apartment price in Dubai was Dh1,118 per square foot in March 2022, while the average villa price was Dh1,267 per square foot. When compared to late-2014 highs, these rates per square foot for apartments and villas are 26.2 percent and 12.3 percent lower, respectively.

Downtown Dubai, with a Dh2,021 average sales rate per square foot, is the highest average sales rate per square foot in the apartment market. Palm Jumeirah had the highest average sales rate per square foot in the villas segment of the market, at Dh2,910.

In the year leading up to March 2022, average rentals climbed by 13.1%, with average apartment and villa rents increasing by 11.7% and 22.5 percent, respectively. The average apartment and villa rents in March 2022 were Dh80,000 and Dh238,441, respectively.

The highest average annual apartment and villa rents were found in Palm Jumeirah, where asking rents were Dh197,482, and Al Barari, where asking rents were Dh801,940, respectively, in the rental market.

Source: PropertyNews.ae