Despite headwinds in the form of rising interest rates and a strengthening dollar, Dubai’s real estate market remained busy and robust in the first half of 2022.
All segments of the market saw growth as sales transactions and values held up well. According to the report, DLD recorded 37,762 total units sold from January through June this year. That is 60% higher than the same period in 2021, setting a new record for transactions in the emirate. There was also an increase of 85% in the total value of sold properties compared to H1 2021.
Bolstered by strong capital growth, high yields and government-led initiatives that incentivizes investment in the property sector, Dubai continued to be a prime target for investors.
Commenting on trends in the industry, Group Managing Director of Betterhomes Richard Waind said that prices in the market are showing signs of normalizing. ‘Supply constraints in the secondary market have shown signs of easing in this last six months as sellers have looked to realise recent price increases. Further, developers have responded to the improved market conditions by increasing launches and bolstering the off-plan market.’
‘Globally, many real estate markets are showing signs of slowing down in the face of rising inflation and the inevitable response in the form of rising interest rates. It is important that we do not repeat the mistakes of the past and believe the UAE is impervious to these factors; however, I am confident that our market is uniquely placed to weather any short term storm and, as we have shown throughout the pandemic, could well be a net beneficiary of global uncertainty,’ Waind added.
Below are the highlights from Betterhomes’ H1 2022 Dubai Real Estate Market Report:
