Dubai: Dh47 billion worth of residential property sold in second quarter of 2022
Demand for apartments outstrips villas as Covid cases decrease in the country
Dubai's prime residential property market witnessed stable growth in the second quarter, thanks to major investment from Northern European investors.
According to the latest report released by Luxhabitat Sotheby's, demand for apartments outstripped villas in the second quarter as the overall market volume surged by close to 10 per cent when compared to Q1 2022, with a total of 13,857 apartments, 1,836 villas and 4,166 townhouses sold at a total value of Dh47 billion.
After the pandemic in 2020, demand for villas had seen a massive increase as people started to look for bigger spaces due to work-from-home and restrictions on the movement of the people. But apartments are again seeing strong demand as the number of coronavirus cases stays low in the country.
"Buyers from Northern European are the top investors who have bought the prime property in Dubai. With more ultra-high net worth individuals (UNHNWIs) moving to the UAE, we expect stable growth in the prime and luxury segment. Encouraged by UAE's positive economic indicators, buyers are finding property investments a safe hedge against high inflation. We expect demand to continue along similar lines into Q3 2022," said Chris Whitehead, managing partner of Luxhabitat – Sotheby's International Realty.
The latest Savills Prime Residential Index results showed Dubai ranked fourth for prime residential capital growth in the first half of 2022. The emirate was the only city in the top five list which is dominated by US cities.
The emirate is also expected to attract 4,000 millionaires this year, which will help maintain the demand for high-end property.
According to Luxhabitat Sotheby's, the top areas in terms of transactions were Palm Jumeirah, Dubai Hills, MBR City District One, Umm Suqeim 3, Jumeirah Bay and Emirates Hills.
The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Jumeira Bay and Palm Jumeirah.
"In recent months, we are seeing investors from UK, India and Germany driving demand, with many of our buyers looking for ready properties and branded addresses," says George Azar, CEO at Luxhabitat Sotheby's International Realty.
The data showed that Dubai Marina, and Downtown Jumeirah Islands sales almost doubled to Dh1.75 billion, Dh4.8 billion and Dh402 million.
In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown (Dh4.8 billion), Palm Jumeirah (Dh3.7 billion), and Business Bay (Dh2.2 billion) as demand for apartments outstripped that for villas, both in the overall and the prime sector.