The Dubai property market continues its golden run as it produced exceptional figures during the first half of the year. A total of 43,000 property transactions were recorded during this period. The combined worth of these transactions was AED 115 billion. 

According to real estate insights, these figures show a rise of 87 percent in comparison to H1 2021. Concluding the first half on a record-breaking note, June 2022 recorded 8,900 real estate transactions worth AED 22.75 billion.

Factoring in the aforementioned figures, it’s safe to say that the real estate sector of the emirate is cruising at an unprecedented rate. With that said, let’s take a look at the Dubai property market outlook for H2, 2022, and H1, 2023. 

Dubai Property Market Outlook for Near Future

Maintaining the pace of H1, the second half of the year also started on a strong note. July 2022 witnessed 7,092 transactions, which shows a 63.56 per cent increase as compared to July 2021. With this, the total real estate transactions till year have reached a record-breaking 45,793, the highest since 2009. Having said that, the average property prices remain lower as compared to the peak 2014 period.

Factoring in the growth of the sector, the Dubai property market outlook shows that the average prices will see a significant rise in the near future.

Let’s delve deeper and find out which factor will impact the performance of the Dubai property market in H2, 2022, and H1, 2023.

Villas to Dominate the Market

The villa sector has been driving the real estate market for a couple of years now. Quarter after quarter, their prices have increased, making them hot properties in Dubai. The apartment sector, on the other hand, has been struggling with the price increase remaining in the single digit. However, the recent statistics show promising growth in this sector as well.

According to property experts, villas in Dubai will continue to dominate the market. Key areas, such as Arabian Ranches, Palm Jumeirah, and Dubai Hills Estate will maintain their upwards trajectory as per the Dubai property market outlook for the near future, attracting investors and end-users due to their high ROI and upscale lifestyle, respectively.

The Influx of Foreign Investors & HNWIs

The Dubai property market has cultivated a reputation for being an investor-friendly market for many years. However, the recent developments have made it more attractive for investors. HNWIs, too, prefer this market for enhanced safety, exceptional growth, and abundant opportunities.

With relaxed conditions for golden and silver visas in Dubai and other reforms, the market is set to become more accessible and attractive for investors and HNWIs. The result will be more investment and better ROI.

The Rising Demand for Ultra-luxury Properties

There has been a notable increase in the demand for ultra-luxury properties in Dubai. As per the Dubai property market outlook for the second half of the year, in particular, the demand will continue to intensify. As a matter of fact, 2022 is expected to set a new record in this sector with $10 million plus home sales.

Shedding light on the H1 data, there were 82 ultra-prime deals recorded from January to June. These are the properties in Dubai that were sold for more than $10 million. This marks a significant growth as compared to 2021 since the entire year recorded 93 sales in this sector. This was a record in itself, which will be broken easily in H2 as we are only 11 transactions behind.

The same trend is expected to continue in H1, 2023 as well when we talk about the Dubai property market outlook. However, only time will take if the upcoming year will be able to break this record or not.

FIFA World Cup 2022

Although the mega event is set to take place in Qatar, the Dubai property market is expected to benefit from it. The most anticipated event among football lovers, FIFA World Cup 2022, will commence on November 20 and complete its course on 18th December 2022.

Dubai will leverage the fact that Qatar doesn’t have the capacity to accommodate all the visitors and spectators. The short-term rental market, in particular, will record increased activity during this period. This will reflect on the overall performance of the Dubai property market in H2. 

Wrapping up

To sum it up, the Dubai property market outlook for H2, 2022, and H1, 2023 looks very promising. The prices are set to increase and the demand will continue to grow. This makes the market ripe for investment.

Check out the listings of the most sought-after properties in Dubai at Zoom Property if you want to make a real estate investment in Dubai. You can also download our smartphone application for quick and seamless access to the latest properties located in several areas. 

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