Real Estate Market Trends in 2022 in the UAE – All You Need to Know
Over the past several years, trends in the real estate market have appeared to be improving. The real estate sector has had a tremendous upturn, especially during the Covid-19 outbreak, while other businesses have fallen short of expectations. Everything about the real estate market shines brilliantly amid difficult times for thousands of firms, from the startling rise in home values to the leap in buyer demand and historically low mortgage rates.
But as real estate experts, we have seen a significant shift in this sector. There is no certainty, as trends change over time. Conditions change or may stagnate for years in different cities, states, towns, or other places. It is crucial for you to keep a close check on all the real estate market developments in 2022 if you are in any way a possible buyer, seller, or investor in the present market circumstances. This will provide you with a precise forecast of the current real estate market.
7 Things to Know about UAE’s Real Estate Market
Whether it is residential buildings, villas, houses, or office places in the UAE, the real estate market is progressing fast, considering the reforms that the government and other institutions are bringing in. to some extent, the surging real estate market of the UAE is also because of the Golden Visa. The new visa policies have created new opportunities and attracted people from all over the world to come, live, grow, and do business in Dubai or other cities of the UAE.
The Increasing Prices & Demand
The cost of real estate has significantly increased in the last several years. Additionally, several variables directly affect prices, such as the desire of regional buyers and the supply of homes on the market. Let’s phrase it this way to grasp it better: “The strong demand and short supply drive the price increase.”
New Projects will Boost the Current Market
According to data issued by the Dubai Land Department, Dubai’s real estate market is again in the spotlight after overcoming uncertainty brought on by COVID-19. It is also displaying strong signals of continuous development (DLD). In comparison to 1.1% and 2.8% three months earlier, a poll of real estate analysts predicted that Dubai home prices would climb by 3.0% in 2021 and 2.5% in 2022.
According to the poll, prices in the Dubai residential real estate market are expected to climb gradually over the next few years. On the one hand, this suggests affordability, and on the other, it suggests sustained growth. Leading real estate players who are developing new projects further support Dubai’s current favorable environment for real estate investment. One of them, for instance, is the Danube Group.
The Role of the Golden Visa Category
Dubai’s economy has advanced significantly, although several foreign markets are recovering from Covid-related lockdowns and limitations.
It has rebounded due to rising oil prices, a rebound in commerce, and more tourism. The first half of the year saw remarkable transaction numbers, notably for off-plan homes, and a sharp rise in sales of high-end/luxury residential units.
4,000 high net worth individuals are anticipated to move to the UAE this year because of the country’s excellent economic, social, legal, and regulatory environment, which supports business, investment, and residence. This prediction comes from the most current Henley Global Citizens Report.
Dubai’s Residential Market
The demand is increasing substantially. Whether it is apartment buildings, villas, or office markets, the demand for real estate has increased exponentially in recent times. More than 6000 apartments have been delivered to the new homeowners.
On the other hand, the demand for buying and constructing villas has reached significant numbers. Having said this, the new market for housing in Dubai is particularly in the development areas such as DAMAC Hills and Dubai South.
Furthermore, the annual villa rent growth rate grew substantially at 22% while average apartment rent rose by 15%. Moreover, the authorities concerning the real estate market and some of the best law firms in Dubai are predicting at large that the demand for housing and rents is expected to rise by 2023.
Abu Dhabi Real Estate Market
Over a thousand units were delivered in the communities of Al Raha Beach, Reem Island, Yas Island, and Saadiyat Island during the third quarter of this year in the Abu Dhabi market.
Several projects, like Al Jubail Island’s Ain Maha Village, which contains more than 240 homes, were started within the previous six months. With almost 500 residential units planned for Yas Park Gate, it was also unveiled.
Strong demand increased rental prices for villas and townhouses by two percent on average and four percent for premier villa communities throughout the quarter. New off-plan villa developments and finished projects were in strong demand in the residential sales markets. Over the past few months, the majority of villa communities have seen a noticeable rise in demand.
Residential and Office Market in Al Ain
Over the past three months, apartment and rental rates increased by an average of 3% every quarter. According to Sharjah Real Estate Registration Directorate, the average apartment sales price in Sharjah grew by 3% during the past quarter (SRERD). Due to higher demand, the Sharjah real estate market saw a 23 percent increase in transactions during the third quarter, totaling 16,781 deals worth AED 5.7 billion. No quarterly or annual movement was noted in Al Ain; however, villa rates did slightly decrease by 1%.
Competitive Real Estate Market Leaders in UAE
The UAE’s residential real estate market is getting more and more cutthroat. Overall development in the real estate sector is anticipated, which will further increase interest from more investors. Increased infrastructure spending, loosened laws for foreign investors, new government initiatives to drive investments, and new project announcements are all expected to contribute to this. Aldar Properties, Emaar Properties, Nakheel Properties, Deyaar Properties, and Damac Properties are a few of the prominent companies in the UAE.
But as things are getting back to normal, the rental apartment owners observe substantial responses from people within a few hours of listing their house for rent. This apparently means that there will be a renewed interest from renters seeking rental homes in the current times.
Let’s Wrap It Up!
Given the projected and current real estate market trends, the market heats up as the days and months go by. We may draw conclusions about the present era from the strong demand for rental flats, the rising desire for house purchases, and the seller-specific market.