August 11, 2022

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2022 Property Outlook: What To Expect From Dubai’s Residential Property Market?

Dubai residential property market

Anybody who would love a lavish lifestyle and looking to upsize their homes will enjoy living in the upbeat neighbourhoods of Dubai. Investing in small-scale to large-sized properties has been a regular activity in Dubai in the last three decades. The pandemic hit the market in 2019, leading to a halt or delay in most property sales happening in the city and the outskirts. Many real estate agents in Dubai suffered big time due to the ongoing complexities that had no immediate solutions. With continued additions in housing units in the city, the supply surpassed people’s demand quickly. Many factors like the current economic state of the country, employment status of people etc., determine the number of sales in a year. Predicting the future of an uncertain sector could be a challenging task. Making wild guesses and adopting clever strategies can help solve these issues.

 

THE IN-DEMAND PROPERTY TYPES

Dubai is a sophisticated place with an overflow of residents every year. People’s preferences keep changing every year concerning their requirements then. However, the most popular types of property that can be seen in Dubai are Villas, Studio flats, townhouses, and detached and semi-detached homes. The demand for lofts and apartments will reach skyrocketing levels in 2022 due to the increase in the number of students and independent working professionals. Investing in early off-plan properties is the hot trend this year and will continue in future.

 

RISING DEMAND OVER SUPPLY

Most countries in the world have faced drought in the property market for various durations. However, Dubai has been planned well before in all aspects, especially in the real estate sector. The demand-supply mismatch in most countries is the main reason for the property crunch. With the regular new build updates, the balance between investors and properties for sale in Dubai is maintained everywhere. The year 2022 will see more sales at a steady pace in the first quarter and continue to rise through the year. 

 

MARKET TRENDS OVER THE YEARS

Among the many cities in the UAE that attract people for several reasons, Dubai has always been the go-to neighbourhood for property investments for most overseas investors. With many economic changes taking place regularly, the sales are on and off the charts from time to time. Every year, the Dubai government ensures to update their housing inventory by building over 1000 households. Property prices across all types are forever changing, and they rose by 9.3 per cent in 2021, recording the highest ever transactions.

 

CURRENT RENTAL PERFORMANCE

The primary reason for any person to invest in a second property in any country is to earn passive income in the long term. Dubai is one of the most popular places for expats who are seen flooding in the country, contributing to the majority of the total population. They prefer to rent a house for short term stays in Dubai. The rental market has also increased by 8.4% in 2021 due to the high demand from the expat population across the neighbourhoods of Dubai.

 

WHAT TO EXPECT- 2022

Though the industry could be slightly fickle at times, the real estate business is one of the most reliable ways of making a sound investment and attaining higher ROI with time. People are ready to make any kind of sacrifice to get hold of the best homes in Dubai. The immediate future and the coming years will see more new builds and off-plan homes disappearing from the property listings due to them getting sold at lightning speed. With fresh deals in the buyers’ market, property sales will reach an extraordinary margin within no time.