by Naya Properties 
Presentation
The year 2022 has shown positive momentum in both property and rental price growth in Dubai. Last year, residential rentals and transactions in the emirate reached record levels amid strong real estate demand among investors from around the world. Dubai is a popular destination for property acquisition due to its exceptional security, business-friendly environment, vast investment opportunities and much more.
Real estate market results for 2022
In 2022, Dubai's real estate market posted a solid performance, with property transactions reaching record levels. As indicated in a CBRE report, 90,881 real estate transactions were recorded in the emirate, surpassing 2009's all-time record of 81,182 transactions.
Real estate transactions in Dubai exceeded AED 500 billion ($136 billion) in 2022, according to official statistics. VEFA sales rose by 92.5%, while secondary sales jumped by 32.4%. The end of last year also showed high indicators, with more than 8,500 transactions recorded in December alone, resulting in a 63% year-on-year increase.
The most sought-after areas in the first part of the year were the waterfront districts, including Palm Jumeirah. Real estate costs in this area have risen largely as a result of high demand and low supply.
Note: beachfront real estate in Dubai is an advantageous investment, as beachfront real estate is in high demand among tourists. Several of the emirate's top projects offering beachfront apartments include Six Senses Residences, AVA by Omniyat and Emaar Mina Rashid.
Enormous growth was demonstrated in green neighborhoods such as Hadaeq Sheikh Mohammed Bin Rashid Part 2. Prices in this neighborhood have risen by 53%, approaching AED 1,600,000 (USD 436,000) on average. This type of community attracts families with children who want to live in destinations with canals and parks.
Property prices in 2022
In 2022, average property prices rose by 9.5%. The cost of apartments rose by 9%, while villas increased by 12.8% over the same period. In December 2022, the average price of an apartment in Dubai was AED 1,168 (USD 318) per square foot, and the average price of a villa was AED 1,385 (USD 377) per square foot.
The Jumeirah area recorded the highest sales rate of AED 2,324 (USD 633) per square foot in the apartment segment of the market. The popular Palm Jumeirah district also recorded the highest sales rate per square foot at AED 3,921 (USD 1,067) in the villa segment.
Rentals in 2022
According to CBRE, record levels have also been recorded in residential rental growth indicators. In 2022, rental prices for apartments and villas rose by 27.1% and 24.9% respectively. At the end of last year, the average annual rental price for apartments stood at AED 95,000 (USD 26,000) and the average villa rent at AED 282,000 (USD 77,000).
Last year, the sought-after Palm Jumeirah district achieved the highest average annual rental rate. Rents averaged AED 248,000 (USD 68,000) for apartments and AED 1,017,000 (ISD 277,000) for villas per year.
Investor flow
Last year, some 80,216 investors registered 115,183 new property investments with a total value of AED 264.15 billion (USD 72 billion). Furthermore, the number of investors in 2022 has increased by 53% compared to 2021.
The main non-resident buyers in 2022 were the Russians with 15% of all transactions, followed by the British with 12% and the Indians with 11%. Against the backdrop of a massive geopolitical crisis across the globe, the emirate saw the biggest influx of private wealth. In the first half of 2022, more than 16% of Russian entrepreneurs and companies settled in the UAE, including Dubai. What's more, the local real estate market has also benefited from the 2022 Fifa World Cup in Qatar. Dubai's status as a "financial center" and the region's main tourist attraction has made the emirate the main beneficiary outside Qatar.
Real estate market forecasts for 2023
The emirate of Dubai remains one of the world's most sought-after investment destinations. The main reasons for its popularity include a solid financial base and economy, as well as bright growth prospects.
Average property price and rental growth rates will be positive in Dubai in the current year, as forecast by CBRE. According to recent research, the emirate's booming real estate sector will see further growth, with 2023 expected to see 46% growth. Experts expect between 30,000 and 35,000 new homes to be delivered in the current year.
Strategic Plan 2026, which will help make Dubai one of the world's best real estate markets, was announced earlier in 2023. The emirate will secure new real estate solutions, foster innovation and create a data-driven industry for investment confidence. In addition, the focus will be on implementing global standards in the real estate market.
Note: The emirate offers an attractive investment environment for many reasons, including the encouragement of small and medium-sized enterprises and the flexibility of a business environment. Buying property in Dubai is a good investment, due to the high demand for housing among business specialists and entrepreneurs.
The emirate will remain attractive to foreign investors, anxious to protect their assets. Dubai will only strengthen its position against a backdrop of energy crisis and geopolitical instability. As a result, demand for property will continue to grow in 2023.
An upward trend will be seen in Dubai's real estate market in 2023, with experts predicting that local prices will rise by at least 10-15%. Underrated neighborhoods with low real estate prices will experience enormous growth. For example, in 2022, the bustling Jumeirah Village Triangle saw prices rise by 62%, while average property costs reached AED 731,000 (USD 199,000). In the current year, property prices in this district are expected to rise by 29%.
How can we help?
Naya Properties is a leading real estate agency in the emirate of Dubai, providing a wide range of services to the highest standards. Our highly qualified company professionals provide a full range of real estate-related services, including the selection and acquisition of property in the emirate.
Our agency's other services include visa assistance, credit assistance, property purchase advice and legal services. The specialists at Naya Properties will provide answers to all your questions about real estate costs in Dubai, the best neighborhoods in which to buy property and where you can get the best return on your real estate investment.
