Increase in demand for sites surrounding the «Expo»

Asteco: Strong performance of the real estate sector in the country during the second quarter

Asteco: Dubai continues to consolidate its position as a safe and attractive destination for visitors and residents.

From the source

The "Real Estate Market Report in the UAE" for the second quarter of 2022, issued by the company "Asteco" specialized in the field of real estate management, confirmed the continuation of the real estate sector in the country, during that period, its strong performance.

The report stated that the geopolitical tensions witnessed by the world, led to the strengthening of the position of the UAE, as a safe destination for tourism, living, work, investment and education.

The report also linked the growing demand for real estate to proactive government reforms, including the introduction of golden residency, and moving towards a digital economy.

Dubai real estate

According to the report, the first half of 2022 saw the launch of a number of successful and noteworthy projects in Dubai.

The supply of apartments increased slightly from 6000 units in the first quarter of 2022, to 7000 units in the second quarter, while the number of new villas that were delivered doubled to 520 villas, and another 25 thousand housing units are expected to be delivered by the end of this year.

The Asteco report indicated that the rental rate continued to grow with a similar momentum to the momentum recorded over the past year, with average quarterly increases of 4% for apartments, 6% for villas, and 3% for offices, while the annual growth rates reached 15%, 23%, and 13%. Straight.

The demand for large units, especially villas and townhouses, with usable outdoor spaces such as balconies and gardens, and the strong advantages provided by residential complexes, remained the focus of residents' attention, which led to a momentum in rental prices and occupancy rates for such units.

The report confirmed that sites with good community facilities, such as the sites surrounding the site of "Expo 2020", witnessed an increase in demand and performance, stressing that the positive fruits of "Expo 2020 Dubai", which include infrastructure updates and site reconfiguration, will undoubtedly show its impact. across a wide range of sectors in the coming years.

The report pointed out the opening of "Expo City Dubai" in October 2022, as an independent free zone, as well as being an attractive oasis for economic activities and growth, by providing affordable housing options, and turning it into a mecca for exhibitions, tourism activities and logistics services.

Asteco expects rental prices to remain high in the second half of the year, at a time when Dubai continues to consolidate its position as a safe and attractive destination for visitors and residents.

Abu Dhabi market

According to Asteco, the housing market in Abu Dhabi recorded the delivery of about 1,300 housing units in the second quarter of 2022, distributed over different areas of Abu Dhabi, with a special focus on Al Raha Beach and Al Reem Island.

The report showed that villas and townhouses continued to attract high levels of demand, especially in the developed villa complexes on the islands of Saadiyat and Yas, at a time when villa rental prices increased by 5% over the past year.

According to the report, the sales market continued its strong activity in the second quarter of 2022, which witnessed an increase in demand and transactions.

Completed villas have been well received, especially in high-quality villa complexes.

In this context, some of these complexes recorded a double-digit growth rate compared to the same period last year.

Sharjah real estate

The report pointed out that office rental prices in Sharjah increased by an average of 3% during the past three months, and by 5% annually, although the actual net rents may have been affected by the additional incentives provided by the owners, including multiple checks, and exemption from rent for specific periods. Exemption or reduction of agent commission fees, exemption from service charges, and reduction/contribution to office processing costs.

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