It is no secret that the real estate market in Dubai is seeing a boom. There have been several headlines over the past 18 months talking about a V-shaped recovery and new transactional records being set.
Before 2021 was even over, total sales were sitting at a cosy Dh177.44 billion, up more than 88 per cent from the sales figures in the entirety of 2020. Sale prices are on an upward trajectory, and it has very much become a seller’s market with a much higher likelihood of a property transacting at its asking price and no room for negotiation or offers.
All projections point to this trend continuing in 2022 – and this could really be a year for the history books. The property market in Dubai was driven by three key factors last year – more international investors, lower supply (especially in prime neighbourhoods) and low interest rates.
Another helluva year
We are looking at a gamechanging year for Dubai real estate. Market conditions are aligned in a way that they have never been in previous years, and there are many benefits to be reaped here. We are seeing this all over the world, with New York recording a phenomenal uplift in transactions over the course of 2021, especially at the market segment priced $4 million or higher.
A city like Dubai, which offers up to three times the square footage for that price, is an ideal choice for home buyers and investors at this time.
Late last year, it was estimated that Dubai housing prices might rise by 2.5-3 per cent in 2022. That estimate has since been revised to approximately 5 per cent – a sign of growing confidence in the market, new variants and other factors notwithstanding.
As Expo 2020 crosses the halfway mark and global lockdowns continue to drive foreign investors to seek out safe havens, it seems very likely that Dubai will close out the year with a new place in real estate history.
Source: Gulf News – 10 January 2022