Real estate prices are expected to rise in the UAE in 2022

Real estate prices are expected to rise in the UAE in 2022

Demand from foreign buyers and investors should remain strong — The National.

The UAE real estate market has started to grow, recovering from a three-year decline in oil prices since 2014, reinforced by a constant oversupply and the onset of the COVID-19 pandemic.

The growth is supported by continued high demand from foreign buyers, government support measures, and successful vaccination campaigns.

Property prices are constantly rising, but their growth will be restrained by the early commissioning of new residential units, especially apartments.

According to preliminary data, next year, developers will put into operation from 50,000 to 60,000 new properties on the market.

Its marketing strategy, positioning the city as a «quiet bay» against the background of pandemic and economic crisis, played a major role in attracting foreigners to Dubai.

There are less than 100 new coronavirus cases in the UAE every day. More than 90% of the population has been vaccinated with two doses.

According to Knight Frank, housing prices in the sector rose by 21% in the first 10 months of 2021.

On average in the sector, in January, one square meter of housing cost $2,992, and in October, the price increased to $3,619.

The consulting agency CBRE indicates that a large share of the purchased housing belongs to «people with super large net capital» (UHNWI). Dubai acts as a place for long-term investment (investments for at least 3-5 years).

Developers continue to introduce various incentives for buyers. For example, companies such as Emaar and Damac release from commission to DLD (Dubai Land Department), the local regulator, and flexible payment plans for purchased real estate.

Off-plan real estate is expected to take a key place in real estate sales in 2022.

In the first half of the year, Expo 2020 will play a major role in the sector’s growth. The World exhibition began on October 1, 2021, and will last until March 31, 2022. There will be a dramatic residual effect for several months after the exhibition.

As of December 2021, over 6.3 million people have visited the exhibition.

It is expected that the coastal residential areas of Dubai will continue to be of considerable interest to buyers.

According to Property Finder, last month, 7,000 properties were sold for $4.88 billion, which is a November record for the last eight years.

Read also