Dubai real estate set to tap more HNWIs as September sales climb to Dh24.42b

With wearing face masks no longer mandatory in public areas, except for public transportation, mosques, and medical facilities, the Dubai property market is expected to continue to its high momentum as HNWIs reposed trust in the growing sector despite the challenging environment across the globe.

The market is already cruising as September 2022 concluded with 8,649 transactions valuing Dh24.42 billion. This marks an increase of a little over 13 per cent and 24 per cent in terms of transaction volume and value, respectively.

Dubai’s real estate attracted over Dh20 billion in sales in a fourth consecutive month as investors continued to invest in the market. After registering D22.75 billion sales in June and Dh21 billion in July through 8,897 and 7,092 deals, respectively, it attracted record Dh24.3 billion investment through 9,720 sales deals in August despite global headwinds.

The total sales figure in 2022, at the end of September, has crossed AED 184 billion, according to the Zoom Property Insights.

Ata Shobeiry, CEO of Zoom Property, believes that Dubai real estate will be positively impacted by the uplifting of pandemic restrictions in the UAE.

“Dubai had already established itself as a safe zone by successfully hosting a global event ‘Expo 2020’, during the pandemic. This posed investors’ trust in Dubai and its different sectors, the most notable being the real estate segment. And now that the pandemic restrictions are lifted, the real estate sector will garner more interest from HNWIs looking for investment opportunities in the UAE,” he said.

Villa demand expected to rise

The demand for villas in Dubai witnessed a substantial increase during the pandemic as people realised the importance of having bigger and more spacious homes. Even though COVID-19 cases have seen a significant decrease over the last year, the villa segment continues to perform better. Data obtained from DXBinteract suggests that September 2022 saw the transactions of 1,694 villas valued at Dh5.7 billion. These figures show year-on-year growth of 1.6 per cent.

Experts believe that the demand for villas will continue to increase in the near future as HNWIs and foreign investors continue to prefer the Dubai property market compared to other regions.

Increased demand for rental apartments

The Zoom Property Insights reveal that the average villa rents in Dubai have increased by over 24 per cent to date. With this, the average annual villa rents have jumped to Dh263,034. On the contrary, the average rent of apartments is limited to Dh87,774. Due to the rising price of rental villas, many tenants are switching back to apartments, which has led to increased demand.

“The increase in villa rents is forcing many tenants to look for affordable options. The fact that pandemic restrictions are being lifted is also playing its role, as there’s no longer a fear of another lockdown which will confine people to the four walls of their homes. However, those who are used to the upscale lifestyle of villas will continue preferring them, which will fuel the growth of this segment”, Shobeiry said.

Key takeaway

• Wearing face masks no longer mandatory in public places in Dubai, with certain exceptions

• Amidst pandemic restrictions being lifted, Dubai real estate is expected to continue its upward trajectory as September 2022 recorded 8,649 transactions with a combined worth of Dh24.42

• The total sales figure in 2022, at the end of September, has crossed Dh184 billion

• The demand for villas will continue to grow as September 2022 recorded transactions for 1,694 houses

• Rental apartments expected to witness an increase in demand as villa rents continue to rise, with the average annual price reaching Dh263,034

— business@khaleejtimes.com