Asteco: Increased investments led to record deals
The delivery of 31 thousand housing units in Dubai during 2022
More than 47.5 thousand housing units are expected to be delivered in Dubai this year.
archival
The report of the real estate sector in the UAE, for the last quarter of last year, issued yesterday by Asteco, a company specializing in the field of real estate management, confirmed that the real estate market in the country has achieved an outstanding level in its ability to withstand in the aftermath of the Corona pandemic, indicating the contribution of economic recovery, In achieving a remarkable increase in real estate investments, which led to recording record deals.
Dubai
The report stated that 31,000 housing units were delivered in Dubai during the year 2022, consisting of 27,000 apartments and 4,000 villas, indicating that the commercial sector witnessed a new office space of about 650,000 square feet.
The Asteco report expected the delivery of more than 47,500 housing units and about 1.35 million square feet of office space during the current year.
He pointed out that the past year recorded a large number of successful and prominent project launches, which accelerated at the end of the year.
rent
According to the report, rental rates for apartments, villas, and offices continued to rise during the last quarter of 2022, with quarterly increases of 6%, 5%, and 7% recorded, respectively. The annual growth of rents in the villa market remained high by 23%, while rental rates increased. In apartments and offices by 19%.
Abu Dhabi
In addition, the residential market in Abu Dhabi witnessed the delivery of about 8,500 housing units in 2022, distributed in different areas, including Al Reem Island, Al Raha Beach and Saadiyat Island.
A number of new projects and additional phases of previously announced projects have also been launched, located in Yas Islands, Jubail, Al Reem and Saadiyat Islands.
According to the Asteco report, rental rates for apartments in Abu Dhabi remained relatively stable at the end of last year, recording marginal annual increases ranging between 1% and 2% across Abu Dhabi.
Villas and townhouses continued to achieve strong levels of demand, especially within the developed villa complexes located on Saadiyat and Yas islands. Therefore, average villa rental rates increased by 4% over the year, with some projects recording double growth.
Apartments and villas
As for the sales prices of apartments and villas, they recorded annual growth rates of 4% on average, with some projects on Saadiyat Island and Al Raha Beach, for example, recording an increase of 8% to 10% compared to the same period in 2021.
The main villa compounds also continued to achieve high levels of demand, with some of them recording increases of nearly 25% in sales prices since 2020.
New villa projects on the map, as well as completed villas, continue to enjoy good demand, with a focus on well-known, high-quality villa complexes.
New rental index
The "Asteco" report stated that the new rent index in Dubai, which is expected to be launched this year, and which is based on ratings of the number of stars for each building depending on its quality and amenities, would encourage landlords to increase their efforts in the areas of management and maintenance in order to maintain the occupancy rate. And good rental rates.
650
thousand square feet of new office space in Dubai in 2022.
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