Dubai realty market marches ahead

Inayat-ur-Rahman, Business Editor

The first half of 2022 has concluded on a strong note for the Dubai property market as it recorded 43.2k transactions worth Dhs115 billion. This marks a year-on-year growth of nearly 60 per cent in terms of sales volume and 87.8 per cent in terms of sales value, according to the Zoom Property Insights.

June 2022 broke a 13-year record, with over 41 per cent growth vis-à-vis sales volume in comparison to 2021. About 8,850 transactions worth Dhs 22.10 billion were recorded during the month, making it the best June since 2009.

A further breakdown shows that 5,880 transactions worth Dhs 10.9 billion were recorded for apartments, while around 2,000 transactions valuing Dhs 7 billion were made in the villa segment.

The average property prices have also increased significantly during the first half. They now stand at Dhs 1,140 per square foot, which shows a growth of nearly 23 per cent as compared to first half of 2021, according to the Zoom Property Insights.

Ata Shobeiry, CEO at Zoom Property, is hopeful that the market will continue its upward momentum during the second half as well, facing the upcoming challenges posed by global recession. “The strong first half is an indication that the market is well-poised to face global challenges, particularly with Expo City Dubai ready to receive visitors, tenants, and entrepreneurs from October 2022. I believe that the market will continue its upward trajectory and end the year on an even higher note,” he said.

Business Bay recorded the highest number of sales transactions during the first half. The mixed-use community had 4,310 transactions indicating a year-on-year growth of around 117 per cent. Dubai Marina, with 3,735 transactions, occupied the second spot.

It was followed by Al Hebiah Fifth, Jumeirah Village Circle, and Downtown Dubai as these areas recorded 3,150, 2,900, and 2,585 real estate transactions, respectively.

“With June producing record-breaking figures, it’s safe to say that the upcoming months will carry forward the momentum. Reformed visa policies with relaxed conditions coming into effect from September 2022 will also play their part and attract more foreign investors and buyers. This will reflect in the year-end numbers produced by the property market”, Shoberiy said.