Dubai’s real estate market greatly profited from Qatar’s FIFA 2022 World Cup in Q4 and became the main beneficiary outside of Qatar due to its standing as a tourist attraction and financial hub of the GCC. It seems Dubai is still and will remain attractive to foreign investors seeking to shield their assets, which will strengthen its position as the geopolitical instability and energy crisis around the world grows.
As the city seems to deliver some promising results in the past quarter, here’s what Sohail Raja, leading our Valuations & Research Department, has to say about the Q4 2022 Market, read the report to know more.
A Detailed Look Into the Property Market Performance
Dubai’s property market ended 2022 on a high note as prices continue to rise, helped by growing demand mainly from foreign investors. With prices rising by almost 1.8% in October and November, with more modest growth in December, Dubai’s real estate market’s strong end to Q4 and year in general, indicates investors and end users continue to invest in the emirate’s real estate sector.
The latest data showed that average real estate prices in Dubai reached AED 1,070 per sq.m. There was also an increase in prices for apartments and villas by more than 8.5% and 13%, respectively.
Until the results of Q4 were realized, Q3 was the best-performing quarter in more than 10 years in the Dubai real estate market, with over 25,500 transactions. This has been trumped by Q4 transactions of 28,780, an increase of 12.8% from Q3. Apartments made up a large bulk of the sales, amounting to 21,354, followed by Villas totaling 5,654 sales with commercial units and plots making up the remainder. This in all equated to a total sales value of AED 81.1Bn for Q4.
Q4 2022 Market Report: Luxury Dubai Properties
According to data, property prices in Dubai grew by 20-40% over the last 12 months. Some areas saw an even bigger upturn, for example, Palm Jumeirah grew by 59%, and Trade Centre First by a massive 210%.
The luxury real estate market in Dubai still dominates other sectors. In total, the premium property segment saw an 88% growth between Q3 2021 and Q3 2022, highlighting significant demand for new homes in Dubai from foreign buyers and investors.
Top Performing Areas
The top performing areas in Q4 were Business Bay, as was the case in Q3, with more than 2,400 transactions, followed by Al Merkadh with just over 1,800, and Dubai Marina with around 1,700 transactions. JVC and palm Jumeirah followed closely behind in third and fourth place respectively.
Districts with green areas like Hadeeq Sheikh Mohammed Bin Rashid Part 2, also known as Dubai Hills also saw massive growth. They attracted families who were tired of living next to the bay or canals and were seeking places surrounded by parks. Dubai Hills grew by 53% and approached AED 5,000,000 in average pricing of apartments and townhouses.
Dubai Property Market in Q4 2022: Did it Pave the Way for 2023?
Most of the areas which saw the sharpest growth in 2022 reached their price limit and may likely grow moderately through 2023. For example, the average price in Palm Jumeirah is around AED 3.95 million and is predicted that prices in the area will increase by only 5% in 2023.
In short, Dubai’s real estate market should see an upward trend in 2023, bar any major global recession. Local prices should increase steadily by at least 10-15% with some areas growing by up to 4-5%.
Would you also like to make an investment in the city?
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