- KENSINGTON presents Dubai’s brilliant start into 2022
- Almost 80 percent more property sales compared to 2021
- 18,4 million euros for a flat in Downtown Dubai
Strong increases in turnover, more and more sales and higher prices for apartments and land for development: Dubai’s real estate market really took off in the first quarter of 2022. The emirate on the Persian Gulf is expanding its position as a safe haven for international capital.
The number of sales transactions in Dubai between January and March rose by an impressive 78.5 per cent compared to the same period in 2021. A total of 20,639 sales were registered in the three months. Throughout last year, which was already characterised by an upward trend, there were around 61,000 transactions. In addition, however, the value of these property sales has grown significantly ¬ the total reached of AED 55.7 billion (€13.9 billion) in Q1 represents an increase of 126.5% year-on-year. The increase in value was particularly strong in land sales with + 172.4 %. But apartments (+ 76.6 %), villas (+56.1 %) and commercial properties (+ 48.3 %) also saw more money flowing in.
The average price for flats in Dubai are now, AED 1,452/square foot (€ 3,905/m2), villas have an average price of AED 1,851,000 (€ 462,750). The average price of all properties increased from AED 1,242,000 (€310,500) in 2021 to AED 1,536,000 (€384,000) in 2022, with larger price jumps in zones such as Dubai Creek Harbour, Dubai Hills Estate, Dubai Marina. JLT. Palm Jumeirah and Town Square.
Dubai’s most sought-after areas
In Dubai, properties in all price ranges are in demand: 32 per cent of property purchases are in the price range below AED 1 million (€250,000), 49 % at AED 1 to 3 million (€250,000 – €750,000) and 19 % above AED 3 million.
The top sales area in Q1 2022 is the Business Bay area with 2,118 transactions. It is a development area located in the heart of the city on an area of 436 ha with retail, shops and luxury apartments. The plans envisage more than 200 skyscrapers. In second place is Al Hebiah Fifth (1,370). This development (8 km2 in size) is located in the suburban area. It is well developed and maintained with modern flats, villas, shops, restaurants. Third most sought-after area is Jumeirah Village Circle (1,331) – JVC is a self-contained and family-friendly area with lots of greenery, set back from the coast between Emirates Hill and Sports City. The quiet community is well suited for a healthy lifestyle. There are apartments, villas and plots here. There were 953 transactions in Downtown Dubai – The city centre is a mixed residential and commercial area with many attractions such as Burj Khalifa, Dubai Mall, Aquarium, Souk Al Bahar, Dubai Fountain, Opera, restaurants, shops. Families like to live in the prestigious city centre. There are plenty of kindergartens, schools, universities and clinics. Dubai Marina (838) is among the top five.
The ambience here boasts a futuristic flair with many modern skyscrapers located primarily along an artificial canal. The marina has piers, yachts, restaurants, cafés, fashion shops and promenades. You get city life right on the water. Dubai Marina is also one of the largest zones where foreigners can buy full ownership.
Price Trends For Residential Properties
Apartments are among the most sought-after properties by property buyers in Dubai. Of the total 20,639 property transactions in Q1 2022, 13,391 were apartments. These comprised a sales value of AED 23.8 billion (€5.95 billion). The highest price was achieved by a flat in Burj Khalifa Zone 4 in the Downton Dubai neighbourhood for AED 73 million (€18.4 million). Dubai Harbour (AED 2,636/sqft (€7,090/sqm), Palm Jumeirah AED 2,428/sqft (€6,531/sqm) and Downtown Dubai AED 2,217/sqft (€5,963/sqm) recorded the highest average prices. Other top zones are Dubai Creek Harbour, Dubai Marina, Business Bay, and Sohba Heartland.
On average, an off-plan apartment in Dubai is now priced at AED 1.2 million (€300,000). This is 16.9% higher than Q1 2021 and still 9.2% higher than 2014, the last record year for sales and prices. Average prices for finished flats, at AED 1.1 million (€275,000), are already 30.9% higher than in 2021
The situation in the villa segment is somewhat more heterogeneous. A total of 3,982 villas worth AED 11.9 billion (€ 2.975 billion) were sold in Q1 2022. The most expensive villa sales were in Palm Jumeirah with a price tag of AED 87 million (€21.75 million) and in Island 2 with AED 30 million (€7.5 million). Top areas with very high average prices for villas include Dubai Hills (AED 4.25m/1.06m), Wadi Al Safa 5 (AED 3.1m/775,000) and Emirates Living (AED 2.84m/710,000).
For villas off plan, the average price is now AED 1.6m/400,000(+13% to 1Q 2021 and -52.6% to 2014). However, prices for finished villas have decreased. They cost an average of AED 2.2m/550,000 (-10.3% on 1Q 2021 and -32.4% on 2014).
A total of 2,517 plots of land changed hands. The increase in price is remarkable. Currently, a square foot is at AED 1,000 (€ 2,690/m2). This is an increase of 99.6 % compared to 1Q 2021 and + 120.6 % compared to 2014.
Dubai’s real estate market is in excellent shape despite a difficult international situation, with record sales in certain sectors. Apartments in particular are experiencing a real boom. Neither inflation or the increased interest rates or the tensions in Europe, triggered by the war in Ukraine, have weakened the market. In fact, Dubai is now considered a safe haven for investments.