The causes are both global and local factors.
Real estate analytical and consulting company CBRE has published an evaluation of the prospects of the construction sector and the Dubai housing market in 2022.
The local market closed in 2021 on a high note. Average prices for residential real estate increased by 9.3% over the year and rental rates by 8.3%. Overall, the annual growth was the highest since January 2015, and rent reached historical peaks.
The market was focused on villas that were popular with both buyers and tenants.
The overall market movement in 2022 will be positive. Sales of villas and apartments should also remain popular. Sales growth should continue.
However, several factors do not have the market growth dynamics that the latter showed in 2021.
The global causes include:
- The overall global economic slowdown;
- The strengthening dollar;
- The absence of a "low base effect" for the local market has benefited the statistical indicators of 2021.
The local causes include:
- The completion of the "villa rally" in the emirate market. Villas make up about 13% of the residential real estate sector, and new houses are not built quickly because of their features;
- The upcoming increase in mortgage interest rates;
- Tightening of real estate rental payment plans.
COVID-19 and its new strains are uncertainty factors that could force many international travel restrictions to return.
It is unknown how the market will develop after the end of EXPO 2020 on March 31. The effect of the world exhibition will continue for several months. However, in 2021, the market is growing due to a major international event preparing for years.
The purpose of this event was to attract many companies, investors, and specialists, announce new global and long-term projects, establish commercial and technological cooperation between local and international companies.
These events are rare and make the diverse categories of people feel excited.
In 2022, businesses, investors, expats, and tourists will no longer have such events in Dubai, and we will see where the market will go.
