Apartments in Dubai are a key player in Dubai Real Estate that is garnering huge attraction. It has witnessed amazing growth in Q1 2022 and surely will gain profits in the coming year. Investors are highly impressed with the massive performance of Dubai Real Estate.
Without any perplexity, the Dubai market has seen wavering in abundance, despite that Dubai has seen a mellowing volume of transactions according to a CBRE report reaching 7,865 in March 2022, up 83.4 percent from a year earlier and the highest report recorded in the first quarter of any year in March 2022 reached 19,009.
This is massive! The first quarter of 2022 has turned out to be eye-catching for property sales where the off-plan sales have increased by 94.6 percent.
With the advent of multiple steps taken by the Government, the reports speak about the tremendous increase in the average price by 11.3% in the year to March 2022. With the average price overall period, the average apartment prices have also increased by 10.0%.
Average rents increased: Not in the sales rates only but the average rent rates have also seen an increase with approx 13.1% till March 2022 in which the apartments have witnessed a rise of 11.7% in rents. The average apartment rent stood at $21,780 per annum.
2022-2027 is being predicted to be the most outstanding years for the UAE Residential real estate market. An increase of more than 8% is forecasted.
There is no need to scratch your heads in order to understand how badly Covid-19 has affected all the sectors of the market. The government implemented lockdowns and this forced the citizens to stay at home with less or no earnings that enhanced the work from home. Despite anything, the real estate sector kept on increasing, especially in UAE residential property continued rising in 2022. The UAE residential market faced a slowdown in the past few years but recovered and especially after the Golden Visa program, the investment interest and the market sentiment improved. This brought the concept of 5 and 10-year residency in UAE where countless benefits can be availed by the holders.
Beating all the restrictions the realty sector in Dubai is back in the limelight presenting strong signs of sustained growth. The Dubai residential market shows that the prices were steady for some time but an increase has been witnessed in the modest price. Now Dubai is having a favorable climate for residential real estate.
Beating all the restrictions the realty sector in Dubai is back in the limelight presenting strong signs of sustained growth. The Dubai residential market shows that the prices were steady for some time but an increase has been witnessed in the modest price. Now Dubai is having a favorable climate for residential real estate.
Competitive Landscape: Neck-to-Neck Competition
The increasing competition in the real estate market is quite visible. With the relaxed laws, government initiatives, spending on infrastructure, several developers taking interest in the market, new projects entering, etc. are enhancing the market. Some of the preeminent players ruling the market are Emaar Properties, Damac Properties, Sobha Developers, etc. According to Shilpa DK, CEO of Arqonz.com said that market is on consistent growth, and in the coming years by 2024 the property prices will be appreciated amazingly.
Apartments Are Back In Game - Strong & Steering
The price of Villas and Townhouses in Dubai has reached beyond limits, but the most notable activity has been witnessed from apartments where investors have shown the maximum interest. A total of 77% in Q1 has been witnessed in the sale of apartments and a total contribution of 79% of all units sold in Q1.
According to DLD, the Total number of units sold by property type QoQ: 77% of an increase
Q1 2021- 6,672
Q2 2022- 11,835
According to DLD, Total sales value by property type QoQ: 146% of an increase
Q1 2021- 8,559,341,662
Q2 2022- 21,059,218,306
According to DLD, Average selling price changes QoQ: 15% of an increase
Q1 2021- 1,290,415
Q2 2022- 1,479,796
People are considering waterfront apartments moreover other and mainly international investors are looking for investments like this. Apartments have seen a total of 15% increase in selling price. In the coming time, it is expected that luxury apartments may see more growth than any other residential property, also they are worth for investors if they want to put them on rent in the future. You can earn some good income from the lease or can earn long-term rental incomes.
Rising Demand Of Apartments In Dubai: It Is Considered As Hot Property
Dubai is witnessing a constant rise in the prices and simultaneously the demand as well. Villas have very strong competition in the market and this is a good opportunity for the investors who are planning to invest in apartments as there will be less competition. Luxury apartment buyers especially in the central location of Dubai can ensure you about the good growth and chances for leasing because of the investors and the ex-pats that are planning to expand their investment zone this year.
In the coming few years and with the increasing ex-pat population, the demand for apartments is increasing. Apartments on lease are always an option in mind for the investors and the NRIs. With that, the influx of the technology sector and the change in UAE policies the demand for apartments in the coming years can be witnessed as encouraging.
Apartment buyers can expect good returns on investment in specific neighborhoods.
For unparalleled living, impressive living in skyscrapers, and high-end living, UAE appears to be heaven. Some of the popular areas to buy apartments in Dubai are Dubai Marina, Downtown Dubai, Jumeirah Lake Towers, Dubai Silicon Oasis, and International City. If it is about buying property in Dubai, then apartments are the foremost choice with these areas enjoying it at max.
An outstanding trend is being observed in the off-plan market in 2022 with a total increase of 16% in 2021. The non-residential investors are looking forward to investing in high-end properties majorly choosing beachfront properties and apartments. In prime areas, strong competition is being observed within the high-end luxury projects and the developers are offering space more in the form of apartments because of the existing demand and also to generate more in the future.
According to DLD, Off-plan sales transactions QoQ: 148% of an increase
Q1 2021- 2,561
Q2 2022- 6,345
According to DLD, Off-plan sales value YoY: 231% of an increase
Q1 2021- 3,670,112,201
Q2 2022- 12,131,371,445
Gains Are Sure From Investment In Dubai Properties
A phenomenal increase in the transactions has been observed shaping the year 2022 into a great one for Dubai's real estate market. In comparison to the first quarter of 2021, the 2022 first quarter has witnessed outstanding growth.
According to DLD, Total sales transactions QoQ: 81% of an increase
Q1 2021- 9,868
Q2 2022- 17, 896
According to DLD, Total sales value (AED) QoQ: 125% of an increase
Q1 2021- 19,030,302,447
Q2 2022- 42,856,090,253
A total upswing in the market has been observed and this is not something that just happened instantly. A combination of factors is responsible for this growth with people investing more. Expats moving to shores for safety reasons, tax efficiency, and a positive business environment with several changes, ample job opportunities, reduced investment cost, and more are the reasons behind the growth of the market.
Foreign investors are continuously plunging into Dubai Real Estate and this has been intensely observed in the first quarter on a very good note. Dubai market has broken all the records and it is expected to continue its growth with countless foreign investors pouring into the market. Among the foreign investors, Europeans are dominating the marketing. Let’s have a look at the countries benefitting the Dubai real estate.
According to Dubai Real Estate Market Report from Q1 2021 to Q1 2022 a total of increases witnessed are:
Median Sales Price Of Apartments Per Sq. Ft In Dubai (Price In AED) In Q1 2022
The median sale price represents the middle range of the price neither the highest nor the lowest. The middle price and the apartment’s price in these locations are lesser than the villas/townhouse bringing an opportunity for investors to book the deal with:
Median Rental Price Of Apartments Per Sq. Ft In Dubai (Price In AED) In Q1 2022
People who are even planning to put the property on rent or live on rent will also avail of benefits from apartments. Lesser price with more space of living- double benefits at your door.
Business Bay:
It is one of the trendiest residential and professional hubs in Dubai that is placed among the beautiful cover of gleaming water. It shared the pristine neighborhood with Downtown Dubai. It is a rapidly developing location that brings top-notch amenities and outstanding living.
Dubai Marina:
It is one of the most sought-after locations in Dubai that is famous for lavish living, multiple entertainment options, high-end shopping centers, luxurious skyscrapers, and more. It is also a famous spot for tourists.
Jumeirah Lake Towers:
If you are fond of lakes around your home then this is the perfect location, giving you eye-catching views. It is the largest development in Dubai where everything is comfortable and maintained.
Palm Jumeirah:
What a mesmerizing beauty it is! If you ever get a chance to visit here, you will be jaw-dropped by the tree-shaped island known for presenting posh living spaces, world-class restaurants, etc. you can enjoy some hottest hotels here. It is the grandest project in Dubai.
Jumeirah Village Circle:
An eye-catching place located in the heart of new Dubai. It is a beautiful development that comes with a luxurious lifestyle settled in the tranquility of nature. Here you can find several luxurious communities.
Dubai Hills Estate:
If you are a nature seeker and looking for beautiful morning views with the luscious garden around and the pristine fairways then Dubai Hill Estate is the perfect destination. Enjoy a comfortable stay with the iconic backdrop of the Burj Khalifa.
Downtown Dubai:
It is one of the busiest hubs of Dubai and a pristine attraction for tourists. It is a large-scale and mixed-use complex that has some preeminent attractions with Burj Khalifa Skyscrapers, light shows, and soothing music.
Demand On The Rise For Apartments In Q1 2022 - It Will Reach Pinnacle By End
Not one or two but several factors are responsible for the rise in demand for apartments in Q1 2022. The tax exemptions, reduced property prices, relaxation for investment for Golden visa holders, and security in the whole UAE land have forced people to invest in Dubai Apartments. You can find the maximum number of apartments in Al Jaddaf, Jumeirah Heights, Al Barari, and Al Kifaf.
According to the demand, 1 bedroom apartments were most popular earlier but now the demand has increased to 3 and 4 Bedroom Apartments. In fact, a slight drop has been observed in the one-bedroom apartments. The biggest rise has been observed in Palm Jumeirah and in Old Town in the sale of apartments segment.
How does Dubai Market look After Q1 2022?
Needless to say, we all just witnessed the best quarters after years. The highest of all have been recorded now in 2022 with the total transaction volume in Q1 with a sales value of over USD 15.3 billion and over 20,000 transactions. In the whole of these transactions, apartment sales have been recorded the most. Off-plan sales have been recorded at nearly 95% for apartments whereas in Q1 2021 it was recorded as 77%. An overall upward trend has been observed and especially a very strong recovery post-pandemic.
Conclusion
Dubai property prices and rents are attracting investors from all over the world. Looking at the exceptional performance the first quarter of 2022 has shown, it is expected that it will just perform amazingly well in the coming months. The Government initiatives will attract more investors and perform strong sales also encouraging developers to come up with some new projects. Properties are quite affordable at this time giving an opportunity to retirees and remote workers to plan their investment here, also the Golden Visa holders invest at the lowest price possible.
1. Why Apartments for sale in Dubai are Hot Properties?
Dubai features countless properties but investors are fonder of apartments because of luxuries come at affordable prices. It can give you a living that fulfills all the basic demands of life.
2. Is Dubai a good place to invest in property?
Yes, Dubai is a place that offers higher rental yields than any other market. Looking at the continuous growth this place is witnessing investors are getting curious to dig deeper into this market.
3. What can you expect from Dubai properties?
The robust real estate sector of Dubai and the tremendous growth pattern it is following for years makes the fact very clear that there is an abundance of benefits that you can expect from Dubai Properties.
4. Which is the best apartment property in Dubai?
Dubai apartments present the class and when it comes to the best apartment property in Dubai then Emaar Beachfront comes on top providing ultra-modern living. This meticulously planned beachfront development is an island that is well-connected with the rest of the Dubai address.
5. Who is the main player in Dubai to improve land regulations?
DLD- Dubai Land Department is an organization whose main objective is to achieve all the objectives of the Dubai Government that is related to the real estate sector and bring the exact date of registration, organization, and promotion.
