Dubai housing market expected to see supply of 38,000 units in 2022 – News

MBR City is expected to lead the delivery of residential units in Dubai this year as developers have accelerated the pace of projects to ensure timely completion and handover of projects, which is a positive sign for the market.



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Published: Sun 3 Jul 2022, 10:54 PM

Last update: Sun 3 Jul 2022, 10:57 PM

With around 38,000 residential units expected to be delivered in 2022 as part of visa reforms and other initiatives aimed at attracting global investors and talent, Dubai‘s property market is poised to maintain its momentum, in especially with MBR City seeing a boom in new unit deliveries.

Supply forecasts show that MBR City, Dubailand, Downtown Dubai, Business Bay, Dubai Creek Harbour, Al Jadaf and JVC are among the main areas that will receive the highest units during the rest of the year, according to information from Zoom Property.

MBR City is expected to lead the delivery of residential units in Dubai this year as developers have accelerated the pace of projects to ensure timely completion and handover of projects, which is a positive sign for the market.

According to data released by the Dubai Land Department, a total of 2,369 real estate transactions worth Dh9.9 billion would be completed during the week ending July 6, 2022. The transactions include 379 lands valued at 1.63 billion Dh and 1,990 apartments and villas. worth 4.26 billion DH.

In the first five months of this year. Dubai’s residential market recorded MAD 61.9 billion worth of villa and apartment transactions despite a record surge in global inflation, according to the latest report. Global real estate consultant Knight Frank believes that the impact of global inflation on the UAE economy and Dubai’s residential market should be limited for now due to effective government measures.

In the first quarter, Dubai saw the delivery of 6,700 units, while around 31,000 more units are expected to be delivered from the second to the fourth quarter, according to Zoom data.

“The market continues to produce promising results as 5,440 transactions were recorded in May 2022, signaling a growth of 33% on an annual basis. MBR City received the highest supply of units in the first quarter, followed by Dubailand, International City and JVC,” the Zoom report states.

Average prices increased by around 11%, with the apartment and villa sectors posting growth of 9.5% and 19.8%, respectively.

In the first quarter, MBR City, a mixed-use development, led the rankings in delivering the most residential units in Dubai during the first quarter and is expected to maintain its position for the rest of the year.

Ata Shobeiry, CEO of Zoom Property, said the property market will continue its upward trajectory despite the threat of the next global recession.

“The real estate market is in a strong position to show resilience in the face of the coming global recession and continue the upward trend that began last year. Although the global recession poses a serious challenge, its impact on the market will be limited as it is supported by new developments, the influx of foreign investment and government strategic planning,” he said.

The first quarter of 2022 saw MBR City receive a huge amount of units delivered out of a total of 6,700. According to The Zoom Property Insights, around 22% of the total number of units were delivered in this mixed-use development.

Dubailand and International City with 16 and 15 percent ranked at numbers 2 and 3 on the list of areas with the highest supply delivered in the first quarter. Jumeirah Village Circle, with over 10%, was another popular community by number of units delivered.

MBR City is expected to maintain its dominance in receiving unit supply by offering more than a third of residential units in Dubai. It will be followed by Dubailand (15%) and Downtown Dubai (11%).

Apart from this, Business Bay, Dubai Creek Harbour, Al Jadaf and Jumeirah Village Circle are other areas that will receive the supply of units for the rest of 2022.

“The demand for villas and apartments in Dubai will remain strong as investors will find the best option there to invest in a booming market. More than 4,000 millionaires or high net worth individuals will migrate to the UAE this year and this will benefit the real estate market,” Shobeiry said.[email protected]

About Tammy N. McFarlane

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