The Dubai real estate market has seen a 25 percent sales rise increase in the second quarter 2022 when compared to the same period, last year.
The data, revealed by real estate company Allsopp & Allsopp, also showed a 3 percent increase between the first and second quarter this year.
The growth in figures is the result of growing interest rates and “a cautiousness over the global economic situation having an impact on the market,” read a statement.
Comparing the second quarters of 2022 and 2021, there is a distinct rise in sales prices. This is the result of a steady increase post-Covid-19, however, the dip in sales prices from May to June is surprising, Allsopp & Allsopp chief executive Lewis Allsopp said.
The data collated by the real estate company offers an insight into what expats moving to the city can expect, given the fluctuating rental and sales prices.
Rentals at Dubai Marina and Downtown Dubai have seen a drop in sales price, showing that buyers prefer and opt for more inexpensive options.
“This could be due to affordability or investors taking advantage of the high ROI achievable in the area without having to buy the larger, more expensive units in prime towers, however, they are top communities when it comes to sales transactions,” explained Allsopp.
Similarly, areas like The Springs and Dubai Hills Estate saw a hike in sales prices unlike Jumeirah Golf Estates, which witnessed a drop.
Luxury villas saw the most activity as sales prices rose by 62 percent, despite an 11 percent decrease in property transactions valued at AED10 million – all because the UAE is the number one choice for “millionaire migration,” the statement read.
“We might have had slightly less migration in Q2, however, we saw the purchasing power rise by an incredible amount,” Allsopp said.
When it comes to average rental prices, a significant rise has been noted in the Dubai Marina and Downtown areas, especially since they are the “go-to” areas for migrating or relocating expats in the UAE.
The rise comes after various government initiatives providing visas for remote working and 100 percent business ownerships, Allsopp said.
Emerging trends as the real estate market matures also seem to be an impetus behind this, which is why segmenting the market by area, would be the best way to educate both sellers and buyers.
“The difference in performance between Dubai Hills Estate, The Springs, Jumeirah Golf Estates, Downtown Dubai and Dubai Marina shows the significance of segmenting the Dubai property market into communities rather than speaking of it as a whole,” Allsop said.
He added: “For example, an overall increase or decrease in average sales price does not mean that prices in each community are on the rise or fall. Landlords and sellers need to be aware of this in order to make informed decisions over their properties.”
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