Dubai real estate figures for Q3 2022
The Dubai real estate market continued its very strong growth in the third quarter of 2022. Dubai Immo, the leading French real estate agency in Dubai, reviews for you the main real estate figures in Dubai for Q3 2022. The figures quoted in this article are all from theDubai Land Department, the government agency in charge of real estate affairs in Dubai.
Over 25,000 sales in Q3 2022
With 25,500 sales recorded in the third quarter, the number of transactions has increased by +14% compared to Q2 and +60% compared to Q3 2021. An increase also in value, since the total sales reached 70 billion dirhams over the period (19 billion euros). An increase of +18% compared to the second quarter and +64.5% compared to Q3 2021.
An exceptional year for real estate in Dubai
At the time of writing, the number of sales is up by +60% compared to 2021 (year to date). Total real estate transactions have already reached 184 billion dirhams (51 billion euros). All categories of real estate are concerned by the increase in the number of transactions, except for villas ready to be occupied, which are down by -7%. The cause of this downturn is a severe lack of supply, which is leading to an explosion in the price of villas in Dubai. At the same time, the rental market has also experienced a very strong evolution. In Dubai, rental prices have increased by an average of 22%. In some of the most sought-after areas such as Palm Jumeirah, the increase is even higher.
Luxury products increasingly in demand
A spectacular increase in transactions on luxury products was noted. +49% of transactions on properties worth more than 100 million dirhams (27M€) compared to 2014, the previous record year in Dubai. The same is true for properties worth more than 20 million dirhams (€5.5M), with an increase of +56% compared to 2015, the previous record year for this segment.
Strong growth in off-plan sales
The lack of supply on the secondary market has led to a very sharp increase in prices, of several tens of percent in many sectors and property categories. As a result, investors have turned overwhelmingly to the off-plan sales market, which accounted for 60% of sales in Q3 2022. For the first nine months of 2022, off-plan sales accounted for 55 percent of sales, compared with 43 percent for the same period last year.
Off-plan sales: Dubai neighborhoods with the most transactions in Q3
The neighborhoods with the most sales in the third quarter of 2021 for off-plan apartment sales are:
- Business Bay: 1,866 apartments
- Arjan : 956 apartments
- Downtown: 828 apartments
- Dubai Creek Harbour: 771 apartments
- Jumeirah Village Circle: 762 apartments
When it comes to off-plan villa sales, Damac Lagoons is crushing the competition, with 1,442 sales compared to more than 3 times less for the second ranked neighborhood (Dubai South).
