Dubai’s average property prices jumped 11.3% in the January-March quarter, with average apartment prices rising 10% and average villa prices rising 20.1%, according to the report. CBRE
A photo taken from “The View at Palm” overlooks Dubai’s marina and skyscrapers. The CBRE report indicates that no less than 7,812 residential units were delivered in Dubai during the January-March quarter. — AFP archive photo
Dubai‘s property market continued to soar in the first quarter of 2022 as average property prices recorded strong double-digit growth in response to government policy measures announced earlier this year, according to a latest report.
CBRE, which released its review of the UAE property market for the first quarter of 2022, said average property prices in Dubai jumped 11.3% in the January to March quarter, with prices average apartment prices increasing by 10% and average villa prices increasing by 20.1%. .
In Abu Dhabi, average prices increased by 1.5% in the 12 months to March 2022, with average apartment and villa prices increasing by 1.6% and 1.1% respectively.
Continuing upward trend
Analysts and market pundits have said growth in the real estate sector will continue this year as government policy measures such as visa reforms and the change in working week have boosted investor and end-user confidence on the market. Furthermore, they said the ease of doing business, reviving economic activities and future growth plans have made Dubai even more attractive for investors looking to expand or expand their businesses in the region.
“The activity levels and performance of the UAE real estate market saw a marked recovery during the first quarter of 2022,” said Taimur Khan, head of research for the Mena region at CBRE in Dubai.
Looking ahead, he said there are potential headwinds that could impact performance, namely higher interest rates and still-high inflation.
“Given the series of social and regulatory policy changes and the enactment of a series of federal and local government initiatives, we believe there are strong fundamentals underpinning the future performance of the real estate sector in the United States. UAE,” Khan said.
Good start in 2022
CBRE’s report further states that no less than 7,812 residential units were delivered in Dubai during the January-March quarter and an additional 56,871 units are expected to be delivered in the last three quarters of the year.
Ata Shobeiry, managing director of Zoom Property, said the strong start to the year for the UAE property market is a welcome sign for investors and buyers.
“While Dubai’s real estate sector was expected to perform better after a splendid 2021, the Abu Dhabi and Sharjah markets also exceeded expectations with steady growth. With the delivery of over 9,500 and 7,800 units on charts in Abu Dhabi and Dubai, respectively, better results can be expected during the rest of the year,” said Shobeiry. Khaleej times Wednesday.
Highest transaction ever
Dubai’s total transaction volume reached 19,009 in the January-March period, the highest ever in the first quarter of the year. CBRE’s report said total transaction volume grew 75.1% year-on-year during the quarter, with off-plan and ready transactions increasing 114.9% and 52.9%, respectively.
Additionally, secondary market transactions accounted for 56.1% of total transactions in the first quarter, with off-plan transactions accounting for 43.9% of the total. However, it is important to note that 68.6% of total sales during this period were initial sales by the developer, i.e. the first sale of the property, while 31.4% of sales were second or subsequent property sales.