Dubai completes over $3B in property deals in the first quarter
In comparison to 2020, apartment sales prices and rents increased by 20% and 10%, respectively. In the fourth quarter of 2021, prices for villas and townhouses in Dubai increased significantly as the emirate’s property market recovered from the effects of the coronavirus. It appears to be that for certain sectors, the pandemic has aggravated existing pressures whereas for others, it appears to have provided a much-needed catalyst for growth.
Studies have shown that villas and townhouses have gained the most momentum post-covid-19. The activity and prices have risen since the coronavirus early this year and have remained high throughout the first half of 2020. According to research by real estate firm Asteco, the villa segment benefited from the transition toward a work-from-home lifestyle, with sales prices and rents jumping by 40% and 24% annually last year, respectively.
In the wake of the Covid-19 slowdown, property prices in the UAE have recovered rapidly thanks to governmental reforms such as the new residency visa program, the golden visa initiative, etc. And not to miss out the revised laws on business ownership, and changes to employment laws for expats as well. Property sales have been boosted by pent-up demand and increased investor mood as the economy has picked up.
According to research by property consultancy CBRE, residential property prices in Abu Dhabi grew 1.5 percent in the year to March. According to official data, the emirate reported 1,722 real estate buy and sale transactions totaling Dh4.35 billion and 1,582 mortgage transactions for Dh6.9 billion in the first three months of this year. The first quarter of this year saw 3,304 real estate purchases worth Dh11.3 billion ($3 billion) in Abu Dhabi, as the UAE’s property market continues to recover from a pandemic-induced downturn, according to the emirate’s Department of Municipalities and Transport (DMT).
“The emirate has retained its status as one of the world’s most sought-after markets and locations for real estate investment,” said Adeeb Al Afifi, executive director of the DMT’s real estate sector. The statement is justified considering the average apartment prices increased 1.6 percent (Dh10,904 per square meter) while average villa prices rose 1.1 percent (Dh8,850 per square meter).
It now appears that the availability of ideal properties is falling short to the demand with less than 200 new units completed in the first quarter of 2022. A total of 9,588 units are expected to be delivered this year, largely at Al Raha Beach, Al Maryah Island, and Reem Island.
According to DMT data, Yas Island was the best-performing location in the January-March period, with Dh1.2 billion in deals, followed by Al Saadiyat Island with Dh673 million and Reem Island with Dh598 million. Khalifa City was fourth with Dh173 million in real estate transactions, Al Raha Beach was fifth with Dh168 million, and Al Shamkha was sixth with Dh150 million.
With its excellent infrastructure, a wide range of options, and a comprehensive range of world-class services, Abu Dhabi’s real estate market cements its position as one of the world’s best places for living, working, and visiting.