Dubai’s real estate market demonstrates a high performance with nearly USD 43.5B in investment in the first eight months of 2022

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The real estate market in Dubai posts AED 160B (USD 43.5B) in investment in the first 8 months of 2022. Market-friendly policy initiatives and the lifting of all COVID-19 restrictions have led to a resurgence of investor trust and accelerated the purchase of residential plots, apartments and villas.

The real estate growth spike in the emirate is also caused by the forthcoming Qatar World Cup 2022. Due to the close proximity of Dubai to Qatar, QWC visitors who transit through the emirate will make property purchases for the purpose of either living in it or as an investment, according to experts.

It is expected that occupancy rates in Dubai will soar above 90%, rivalling Expo 2020, due to the same indicators in Q4 which will be comparable to the same period of 2021.

The luxurious segment in particular, has attracted significant investment in 2022. Several elite villas have sold for high-profile valuations in the range of AED 100M (USD 27.2M) to AED 300M (USD 81.6M).

The recent rise in real estate transactions in Dubai’s property sector comprised the sale of 769 apartments and villas amounting to AED 1.76B (USD 479M), 73 land plots worth AED 195.5M (USD 53.2M), as well as 17 gift deals of AED 30.97M (USD 8.4M).

Experts predict that the property pricing in Dubai will stabilise, but the fundamentals for real estate transaction volume will continue their momentum as they are based on the strong fundamentals of the UAE. The exceptional increase in supply in certain property market segments will put pressure on the pricing of certain asset classes.

Another interesting event in the Dubai real estate market is associated with the allocation of USD 4B for the development of the Dubai Islands and other large waterfront projects by Nakheel.

The Nakheel developer has signed agreements with Dubai Islamic Bank, Mashreq Bank and Emirates NBD for refinancing AED 11B (USD 2.9B) and additional funds of AED 6B (USD 1.6B) for new projects. The strategic financing deal is aimed at driving a new phase of the master developer’s growth.

The refinancing through a syndicate of three banks demonstrates strong financial foundations and long-term growth prospects of the Nakheel company. The developer has invested in building a strong assets portfolio and a pipeline of new developments over the past two years. New projects will support the goals of the Dubai 2040 Urban Master Plan and ensure the health and well-being of citizens, residents and visitors.

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