386 billion dirhams of Dubai real estate transactions during 2022
The boom in real estate sales comes from the increased demand for luxury properties.
At unprecedented record rates, real estate transactions in Dubai recorded, from the beginning of 2022 to date, about 387 billion dirhams, including sales of approximately 260 billion dirhams (258.64 billion at the end of December 23, 2022), distributed over 95,243 thousand sales transactions, while the market witnessed The mortgage is 127 billion dirhams, the value of real estate mortgages through 25.574 thousand transactions, which confirms the strength of the real estate sector this year, and its breaking the rule of mortgage in return for purchase, which came from the strength of the financial solvency of investors and buyers, which gave a great impetus to the purchase of real estate, and the availability of financial liquidity to offer More projects in the market.
For their part, real estate experts said that this boom in real estate sales in terms of value comes from the increase in demand for luxury real estate, and the implementation of dozens of deals during the current year.
In statements to Emirates Today, they emphasized that the growth rate of demand varies from one category to another, as it grows at normal rates in the middle residential groups, while it grows at a great pace in the luxury residential groups, in which demand exceeds the supply, and at unprecedented rates, expecting The demand for luxury residential and commercial real estate will witness a strong momentum during the coming period.
According to real estate reports based on data from the Dubai Land Department, prices of prime real estate in Dubai have jumped by 89% over the past 12 months, supported by the influx of wealthy buyers who have bought "second homes" in the city.
"The increase in demand is matched by an increase in prices," said the managing director of the "Harbor Real Estate" company, Muhannad Al-Wadiya, who is expected to last from one to two years, until a balance occurs between supply and demand, as there are many proposals that have not yet been delivered, and need to be completed. Two or four years to meet the current demand, and that the increase in demand is matched by an increase in the population, according to the Dubai Urban Plan 2040, and it is expected that the population will increase from 3.5% to 5.8%, as this increase must be provided with housing, and this demand is real, and its quality is high.
For his part, Faisal Durrani, head of Middle East research at Knight Frank, said, “The value of sales in residential real estate in Dubai grew by 29% in the third quarter alone, driven by the continuous influx of high-net-worth individuals who are heading to key areas.” In Dubai, in search of (second homes).
He pointed out that real estate sales, whose price exceeds 37 million dirhams, have reached a high level, and the first nine months of this year witnessed the conclusion of 152 high-quality sales deals, exceeding the 93 deals recorded in the past year.
He added, "In another shift from previous cycles, the number of planned new luxury homes recorded a lower level than the volume of demand for them, which led to a shortage of homes overlooking the sea, in particular."
For his part, Raad Ramadan, the general manager of the Awad Gargash Real Estate Company, indicated that the demand for luxury real estate exceeds the supply, in addition to the fact that the real estate market is witnessing an increasing demand since the beginning of last year until now, and that the real estate stock is in need of additional quantities. With the continuous demand by investors for real estate, especially villas », it is expected that the market will witness increased demands for real estate during the coming period, and therefore the supply is low and the demand is large, and the real estate equation in Dubai is dominated by demand, and the market is currently on the rise.
He continued, "With regard to prices, it will witness further rise next year, although not at the same pace that we witnessed during the past two years, and it will reach the equilibrium stage in 2024."
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