Dubai’s secondary real estate market witnessed a long-awaited high in the first quarter for the first time since 2010. The emirate’s reviving realty sector recorded a total of 20,539 sales transactions worth AED55.5 billion. The top-ten list of investors included countries such as the UK, Italy, France, Russia, China, and Lebanon. India and Pakistan followed close behind in making significant investments, and there was also an increased presence of Canadian investors in the first financial quarter.
Amongst the top nationalities investing in the secondary real estate market of Dubai, the UK, Italy, and France occupied the first, third, and seventh spots respectively. Canadian investors grew by 116% in Q1 2022 as compared to Q1 2021. India and Pakistan were also on the top-ten list with India taking the second spot, and Pakistan taking the eighth spot. Russia occupied the fifth spot and its investors grew by 65% in the first quarter of 2022.
As per official data, Zoom Property Insights stated that sales transactions made in the secondary real estate market constituted 58% of the total, while the remaining 42% was attributed to the primary market. According to the data available on Dubai Land Department’s open platform, a total of 7,009 sales transactions worth Dh18.3 billion were recorded in April. After April 2009, this year saw the second-most successful April for sales in terms of both volume and value.
Villa prices estimated at their highest
Some of the largest sales were made for villas. In the primary market, Arabian Ranches-3 took a top spot, while Dubai Hills Estate gained popularity in the secondary market. As of March, average villa rates have increased by 22.5% and are estimated at Dh238,441, annually.
The rental market saw the highest prices of apartments and villas in the areas of Palm Jumeirah and Al Barari where the average rent was quoted at Dh197,482 and Dh801,940, respectively. Taimur Khan, Head of Research at CBRE Group in Dubai has said this is the strongest first quarter in terms of residential transactions, and that there is moderation in sales and rental growth rates.
Foreign investment in Dubai leading to economic growth
Dubai’s property market is predicted to see higher growth as more foreign investors continue to make their way into the market due to visa reforms and progress in economic stability. There is also an increase in the number of investors because of the emirate’s changing labor laws and the growing entrepreneurial avenues.
In the same vein, Ata Shobeiry, CEO at Zoom Property Insights, has said that this growth can be accredited largely to foreign investors. The CEO continued to say that the rise in real estate demand, property prices, and ROI is due to the inflow of international investors. There were many first-time investors at Expo 2020 who decided that the market was worth investing in. The recent announcement of the green visa and the relaxation of rules and eligibility criteria for a golden visa will further facilitate foreign investment. Shobeiry also said that more foreign investment would mean even more successful quarterlies in the future.