In the first half of the current year (2022), Dubai’s real estate market continued to impress with strong performance figures. In fact, apartment supply increased from 6K units in the first quarter to 7K in the second quarter. At the same time, the number of completed villas doubled to its current amount of 520. By the end of 2022, there will be a total of approximately 25,000 residential units scheduled for completion, amid continued demand for secondary properties. Most of the new handovers can be found in the coveted communities of DAMAC Hills, Wasl Gate, Port De La Mer, and Dubai Hills Estate.

The emirate’s real estate sector witnessed a wide range of noteworthy project launches, such as Jumeirah Living Business Bay, Ellington Beach House, and Alaya Gardens, among others, which was fuelled by steady economic recovery and the latest Golden Visa amendments. In April 2022, the UAE Cabinet announced that the 10-year Golden Visas would be available to those investing in secondary/off-plan properties priced at AED 2M (USD 545K) or above. Along with impressive indicators in off-plan project sales, there is particular demand for ultra-luxury real estate, which was recorded in the first half of 2022. This is partly due to an inflow of HNWIs and UHNWIs to Dubai.

It is worth noting that the surge in prices for the construction and supply chain indicates growing risks for developers, which can result in possible delays during the pre/early construction stages. However, large parts of developments have been made available with construction milestone-related payment schemes, which will encourage developers to complete properties on time or even ahead of their estimated handover date.

The positive impact of Expo of 2020, such as the repurposing of the site and infrastructure updates has filtered across many different sectors in Dubai. The World Expo site is set to become an independent free zone, as well as a leading destination for logistics, exhibitions, and tourism, and it will feature budget-friendly housing.

The emirate also recorded a whopping rental rate growth as average quarterly prices grew by 4% for apartments, 6% for villas, and 3% for offices. At the same time, the annual growth was set at 15%, 23%, and 13% for the respective segments. Judging by the current trends, end-users and tenants are interested in spacious properties, such as townhouses and villas, which feature gardens and balconies, as well as access to premium communal amenities.

In terms of the most popular neighborhoods for rentals, Palm Jumeirah and Downtown Dubai are the leaders with a 24% rental growth year over year. JBR and Dubai Marina followed with a 23% increase. Meanwhile, Dubai Hills Estate and Palm Jumeirah registered the highest growth in villa rental costs at 42% and 41%, respectively. Regarding commercial properties, Business Bay witnessed the highest surge in rental prices for offices at 21%, and DIFC was slightly behind with an 18% increase.

When it comes to the best-selling areas, Palm Jumeirah remains a leading destination both for apartments and villas. Year-on-year, apartments had an increase of 44%, and villas had an increase of 52%. Business Bay took second place for apartment sales prices with a 34% surge, and Arabian Ranches registered a 40% increase in the purchase prices for villas.