Dubai real estate market showed the best start to the year in the history

Dubai real estate market showed the best start to the year in the history

In the first two months of 2022, 12,119 real estate transactions were concluded on the local market. This is 17.7% higher than in 2017, which was followed by the previous similar record.

February showed excellent results — there were 6,346 transactions out of the specified number. This is the highest result for February among all the years of observations and it is 43.5% higher than the last such record. This result is also 9.9% higher than in January 2022.

Off-plan real estate market

In February of this year, 2,576 transactions on off-plan real estate were recorded (real estate under construction), which is 4.9% less than in January 2022, but shows an annual growth of 112.9%.

Besides, last month, more than 3,000 off-plan housing projects went on sale. Townhouses occupy 58.5% in this category. Apartments account for 36.8%, and not villas — 4.7%.

Secondary market and mortgage lending

Compared to January, February increased by 4.5% in the number of transactions in the secondary housing market. During the month, 2,180 real estate resale transactions were recorded — 34.4% of the total market for the month.

During this period, 1,580 real estate transactions involving mortgage funds were recorded in Dubai, which is 11.7% more than in January of this year.

Prices, cost and rental income

In February, prices rose by 1.12%, while the average estimated value of real estate was at around USD 2,933 per square meter. Only 18.8% separate the current figure from the historical peak of September 2014.

Rental income increased by 6% over the month. By category, the yield from rent to townhouses, apartments and villas increased to 5.6%, 7% and 5.1%.

It is expected that real estate prices and rental rates in the residential sector of the market will grow during 2022, according to S&P Global Ratings.

Read also