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Dubai real estate closed 2022 with a record $72.2 billion in sales, up 61% year-on-year, and a new report expects prices and rents to keep climbing through 2023.
Real estate in Dubai saw a bumper year in 2022 with record-breaking transactions and soaring property prices, and the trend is expected to continue in 2023, according to a new report, spelling good news for landlords.
Record-breaking sales
This led to a record-breaking $72.2 billion (Dh265 billion) in real estate sales in 2022, an all-time high and a 61 percent year-on-year increase in transactions. The sales value of transactions increased by a staggering 77 percent year-on-year.
The average villa or townhouse was sold for $1.36 million (Dh5 million), an increase of 28 percent, while the average rental price for a villa or townhouse averaged at $80,000 a year (Dh297,000).
British buyers accounted for the highest proportion of retail transactions in 2022, followed by Indian buyers, buyers from France, and Russians, the report said.
The areas which recorded the highest sales transactions for villas and townhouses in 2022 were Dubai South, Damac Hills, and Villanova, while the top three areas for apartment sales were Business Bay, Jumeirah Village Circle and Downtown Dubai.
Soaring rents
It was reported in December how soaring property prices across the emirate forced cash-strapped residents to pack their bags and downsize as inflated rents continued to outstrip salary increases. For many, it meant moving out of their homes to smaller villas or apartments or finding a property in cheaper, further-to-reach areas.
As Allsopp explained: "You can't talk about the 2022 Dubai real estate market without discussing the rental trends and how rents quickly accelerated throughout the year. The 2022 rental volumes largely eclipsed 2021 numbers from Jan-Sept, with the only months not outperforming 2021 being Q4 2022."
"We can attribute this to Dubai Expo 2020 launching in Q4 2021 to spectacular fanfare and international attention, which resulted in record rental activity levels during the same period, something not even 2022 could top."
"We saw tenants relocating to more affordable rental locations in the face of significant year-on-year rental price increases. 2022 shows signs of a returning migration back into the city, specifically into apartments, as prices across popular villa/townhouse communities continue to grow. Apartments remain the most popular rental choice for Dubai residents, accounting for 83.5 percent of the total rental contracts, with villas/townhouses making up 8.4 percent of all rentals in 2022."
