The residential real estate market in Dubai is experiencing highs in rents and transactions. From January to May 2022, there were 30,900 residential transactions in Dubai, which is the highest figure since 2009. The number of transactions in May was 6,720 worth AED18.3B, an increase of 53.2% compared to May 2021.
The performance of the market during the first five months of this year has been impressive and exceeded expectations.
The market is expected to continue to grow as more projects are expected to be launched. According to DLD, the off-plan market recorded 8,616 transactions during Q1 2022, which is more than AED4 billion. On the other hand, the secondary market recorded 11,923 transactions during the same period, which is more than AED10 billion.
The number of transactions and the confidence that investors have in the market are two factors that have contributed to the growth of the real estate sector in Dubai. It is a testament to the maturity of the market and the confidence that investors have in the future of the sector.
Despite the various factors that have contributed to the success of the real estate market in Dubai, various initiatives are also helping to maintain the market’s momentum. One of these is the implementation of visa reforms that will allow investors to get a residence visa without having to go through a lengthy process.
An Increase in Demand for Luxury Properties
The demand for luxury properties in Dubai is expected to continue to grow. This is evidenced by the increasing prices of apartments and homes in the city. The villa market in Dubai will continue to grow. There are various areas in the city that are becoming popular, such as Dubailand, District 2020 and Dubai South.
Population
The growing population and the improving infrastructure are some of the factors that are driving the demand for luxury properties in Dubai real estate.
Due to the increasing number of people moving to the city, there has been a rise in the number of construction projects in Dubai.
One of the most sought-after areas for luxury property buyers in the city is the Palm Jumeirah. This area is home to some of the highest-priced real estate in the region. Other prominent locations are The Meadows, Downtown Dubai, and Emirates Hills.