Dubai real estate market continues to rise after Q1 2022

Villa’s prices went up

Dubai’s real estate market continues to rise after the first quarter in 2022, with the average prices for villas in Dubai going up in April amid a record number of transactions, while the prices of apartments reported a slight decline.

According to CBRE, average villa prices had risen by 20.4 percent in the past year and by 1.9 percent month-to-month in April. Apartment prices were up 9.6 percent from 2021, but they dropped by 0.1 percent in April compared to March.

A good year for real estate in Dubai

2022 started off on an upwards trend, with record-breaking increments. Just to name a few examples, the Dubai real estate market has reported the most transactions, the highest price per square foot (in Bulgari Resort Residences) and the sale of the most expensive property in Dubai so far this year, worth DHS 102.8 million for a villa in Emirates Hills.

In terms of the volume of transactions, Dubai’s residential property market rose 43 percent annually, reaching 6,342 in April.

Record-breaking transactions
According to Property Finder, in April sales transactions worth DHS 18.2 billion (USD 4.9bn) were recorded, the highest for the month since 2009.

The most outstanding performance was recorded in Dubai’s premium market, with prices going up by 60% year-to-year.

Palm Jumeirah villas reported a 5 percent increase in April, while the prices of villas in Jumeirah and Jumeirah Golf Estates were up 3.7 percent and 4.6 percent respectively.

“The demand for the luxury market is stemming from both end-users and overseas investors looking to relocate or buy a secondary home in Dubai,” according to a quarterly market report by Core.

“Despite growing concerns around the global macroeconomic backdrop, namely higher financing costs and high rates of inflation, activity in Dubai’s residential market continues to remain at historic highs,” said Taimur Khan, head of research – Mena at CBRE in Dubai.