INDUSTRY
ANALYSIS
REAL ESTATE DUBAI PROPERTY MARKET
First-time buyers, District 2020 also leads demand for residential properties in the UAE
Overseas investors drive Dubai property market IF CORRESPONDENT
According to a Coldwell-Banker Richard Ellis (CBRE) report, foreign investors, end-users, and District 2020, a human-centric city of the future, evolved from Expo 2020 as a mixed-use community that promotes well-being, will continue to drive Dubai real estate sector’s growth in 2022. The residential The CBRE stated that the market UAE offers a complete lifestyle in Dubai with excellent infrastructure witnessed a to the property buyers. record first According to Mortgage quarter as the Finder, a tech-enabled total volume of mortgage consulting service transactions powered by Property Finder reached 7,865 said that roughly 82% of in March 2022, mortgages in the UAE up 83% in were from first-time buyers 2021 intending to live in the property in 2021. The UAE residents made up the majority of borrowers at 94%, while 90% of borrowers opted for fixed-rate mortgages. The residential market in Dubai witnessed a record first quarter as the total volume of transactions reached 7,865 in March 2022, up 83% in 2021. Total transaction volumes for the year ended March 2022 were 19,009, the highest total reported in any year's first quarter. Off-plan sales surged by 94% in the first quarter of 2022, while secondary
12 | March - April 2022 | International Finance
market sales increased by 76%. According to another research report, Dubai real estate is projected to continue its golden run after Expo 2020 which ended in March 2022, as foreign investors return to the market to take advantage of the UAE's investment potential.
Average property prices in Dubai increasing The report noted that average property prices in Dubai increased by 11% in March 2022. During this time, average apartment prices climbed by 10%, while average villa prices increased by 20%. The average apartment price in Dubai was $30 per square foot at the end of March 2022, while the average villa price was $344 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot for apartments and villas are 26% and 12% lower, respectively. Downtown Dubai has the highest average sales rate per square foot in the apartment market, at $550 per square foot. In the villas segment, Palm Jumeirah had the highest average sales rate per square foot at $792.
Average rents increased The average rent climbed by 13% in the year to March 2022, with average apartment and villa rents increasing by 12% and 22 %, respectively. The average apartment and villa rents in March 2022 were $21,780 and $64,917 per year. The Palm
