The CEO at TopLuxuryProperty.com says, “Real estate is one of those industries where everyone knows you can earn money, but only few actually understand how.”
In 2022, the rise in property values occurred at a rate of 0.92 per cent on a monthly basis, which resulted in a gain of 11.05 per cent annually. Compared to the 1.33 per cent monthly increase in 2021, when yearly price growth was about 16 per cent, this was a slower showing, but it was still remarkable overall. Notwithstanding the consequences of rising interest rates and inflation, Dubai remains a standout in the global property market, with a price increase recorded for 2022 of double digits. TopLuxuryProperty.com has also analysed the increase in price and has started benefiting already by dealing smartly.
This is even though interest rates have been rising. According to the research conducted by the real estate data platform in 2022, annual property price growth reached 11.05 per cent, averaging 0.92 per cent per month. This decreased from 2021 when yearly price growth was shy of 16 per cent, and monthly price growth averaged 1.33 per cent, but it was still a very high annual performance. With prices increasing by 1.17 per cent in December, Dubai’s real estate market was described as having “an unusually robust year” in 2018.
The value of a square foot of real estate is Dh 1,089, as indicated by the Property Monitor Dynamic Price Index (DPI). This level has not been reached since December 2013, during the most recent market upswing, or January 2018, during the extended pre-Covid down cycle. There were a total of 9,131 sales in December, which is a reduction of 10.4 per cent compared to November’s total. Despite this, the amount of business conducted in December was the largest on record, and it was roughly four times more than the volume of any other December since 2014.
In point of fact, the performance of home sales reached a new record high in 2022, with 86,849 transactions, which surpassed the previous high of 80,831 transactions, which was set in 2009. As a result of the increasing demand for luxury real estate in Dubai, it is anticipated that the prices of villas and apartments will increase by between 7 and 10 per cent across the city in the year 2023. The tourism industry in Dubai is expecting a higher number of visitors to arrive in the emirate this year as a direct result of China lifting travel restrictions imposed on Dubai as a result of the virus Covid-19.
Almost 80,000 people, including 140 heads of state and government, are expected to visit Dubai for the COP28 conference, which is scheduled to take place soon. This will be a boon for the city. With the publication of the United Arab Emirates (UAE) Tourism Plan 2031, an increase in investment in tourism-related businesses such as transportation, aviation, and the hotel is anticipated to take place.
According to a report that DXBinteract.com published in 2022, the value of sales in Dubai’s real estate market climbed by 76% to a total of Dh265 billion. As compared to 2021, this is an increase. The market for pre-construction housing experienced a growth of one hundred per cent in 2022, with over 52,000 trades recorded at a total value of over Dh124 billion.
In addition, there was an increase of one hundred per cent in the number of transactions. 2022 was a banner year for the new building as developers got their feet back under them and released 53,000 flats for more than Dh155 billion. The volume of mortgages issued remained robust, supported by an increase in the number of bulk investors’ portfolio transactions. At the same time, gross rental rates for apartments increased to more than seven per cent, making both capital and rental returns appealing to many investors and brokerage companies like TopLuxuryProperty.com.