Dubai’s property market has accelerated and has witnessed an incredible start in 2022, with almost all areas rising in value. Real estate advisory firm Colliers has reported a transaction volume reaching 11,071 in February – the highest total number ever recorded in the first two months of the year. As we look ahead to the rest of the year, where are the areas showing the most impressive performance? And where are the areas falling behind?
Top five gains in Dubai’s property market:
Jumeirah Village Circle: up 3.0% (605/sq.ft.)
Located in the heart of Dubai, JVC offers a tranquil setting and the amenities for a luxury lifestyle
Palm Jumeirah: up 2.9% (2,776/sq.ft.)
Unsurprisingly, the iconic Palm Jumeirah tops the list for price per square foot.
Falcon City of Wonders: up 2.8% (730/sq.ft.)
An impressive gain for this suburban community that ties Arabian heritage to the modern-day.
District One: up 2.7% (1,773/sq.ft.)
A new luxury development with an outstanding location close to Downtown Dubai.
Jumeirah Village Triangle: up 2.6% (961/sq.ft.)
Spacious villas and townhouses with a mix of Arabian and Mediterranean styles.
Top three losers in Dubai’s property market:
Arabian Ranches: down 0.9% (1,140/sq.ft.)
One of the original suburban projects, Arabian Ranches has lost ground to newer alternatives.
Akoya Oxygen: down 0.4% (586/sq.ft.)
Previously Damac Hills 2, this community has lost a little ground over other projects closer to the city.
The Lakes: down 0.1% (1371/sq.ft.)
A small drop for a luxury destination popular with families located just next to Emirates Hills.
Dubai’s property market drivers
And what is driving the price gains? According to insight from CBRE, reasons for the gain in price in Dubai’s property market can be attributed to the following market drivers:
1. Government initiatives
New schemes such as resident’s permits for those wishing to retire in the UAE, the 10-year Golden Visa scheme, and flexibility for those living in Dubai and working remotely, have all added to Dubai’s perception as a viable place in which to live and work. The success of Expo 2020 has also contributed to Dubai’s status as a viable global hub.
2. Speedy recovery from COVID-19
Dubai handled the pandemic well, with minimal restrictions and a swift economic rebound. This added to the number of international visitors, but also led to an increased focus on villas and units with outdoor space, adding further pace to the real estate market.
3. Improvement in Dubai’s economy
Business conditions in Dubai’s non-oil private sector economy improved sharply in February, with the emirate’s seasonally adjusted IHS Market Purchasing Managers’ Index climbing to 54.1 from 52.6 in January. Anything over 50 indicates economic expansion.
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