The global real estate market has been affected by macroeconomic volatility, but the UAE had significant momentum in the final quarter of 2022, indicating a sustainable growth pipeline in 2023. In a similar vein, JLL's UAE 2022 Year in Review report highlights the potential for the coming year while providing a look back from 2022.
"2022 has been a year of sustained growth for the UAE's real estate sector as it continued to gather momentum while benefiting from the country's dependable economic policies, excellent infrastructure, safe haven status, and innate ability to adapt to new trends," said Faraz Ahmed, Associate, Research at JLL MENA.
Even industries that originally experienced difficulties, like retail, saw strong growth in the final three months of the year. With aspirational offerings in the industry, we can anticipate that the UAE will continue to draw interest from both regional and international investors.
Dubai's residential transaction activity grew strongly throughout the year. Data from Dubai Pulse also shows that between January and November 2022, transaction volumes in the emirate increased by 51%, while the value of transactions increased by 55%. According to anecdotal data, the surge in demand from foreign buyers is largely to blame for the increase.
Additionally, the delivery of 38,000 residential apartments in Dubai last year increased the city's overall supply to 680,000 units, while the delivery of around 6,000 units in Abu Dhabi increased the residential stock there to 279,000 units. A little more than 41,000 units are expected to be completed in Dubai in 2023, while 6,000 units are expected to be finished in the capital.
In Dubai and Abu Dhabi, the average home sales prices increased by 10% and 3% annually in Q4 2022, respectively. Although they increased by 27% in Dubai at that time, rentals in the capital mostly remained steady.
With the current geopolitical and economic issues in the world, Dubai's exceptional success in the residential sector once again shows its relative safe-haven status. Having said that, the robust residential activity can also be partially ascribed to prices that continue to appear appealing when compared to those in other significant cities throughout the world.
The pipeline of projects announced by developers in 2022 climbed to 27,000 units as a result of higher demand; these will be delivered during the following years. It is important to remember, though, that both end users and investors are generally more knowledgeable and pickier when choosing which houses to buy. Developers must therefore set themselves apart from rivals and provide products of a higher calibre.
Strong economic conditions and the scarcity of high-quality office space were largely to blame for the double-digit surge in rental values, which brought them to levels last seen in 2015.
Comments
Post a Comment