Dubai apartment and villa prices rise in Q1 as demand surges
- The return on residential capital increased by 19%.
- Apartments recorded a growth of 10%, while villas continued their dominance with a price increase of more than 20%.
- Jumeirah Beach Residence, Business Bay, Dubai Marina, Downtown Dubai, Jumeirah Lake Towers and Palm Jumeirah remained the popular communities for apartments in the first quarter of 2022.
- Arabian Ranches, Jumeirah Islands, The Lakes, Jumeirah Village, Palm Jumeirah, Meadows, Jumeirah Park and Emirates Hills remained the popular villa communities during the first quarter of 2022.
Dubai: The Dubai property market started 2022 on a high note, with the first quarter producing record numbers, with the total number of transactions reaching 19,009 at the end of March, capping the best first quarter ever in the Dubai property market.
According to Zoom Property Insights, the value of residential capital has increased by up to 19% per year as the market is growing rapidly, thanks to government initiatives, visa reforms, Expo 2020 and the influx of investors foreigners during the January-March quarter.
Average property prices in Dubai saw an 11.4% year-on-year increase in the quarter, with average prices for apartments and villas rising 10% and 20.2% respectively, driven by the increased demand in the market.
Ata Shobeiry, CEO of Zoom Property, believes that after a strong 2021, the market will also continue its golden run in 2022.
“A solid 2021 and a promising start to the year are a sign that 2022 will produce good numbers for the market. Villas will continue to grow, while based on the double-digit growth of the first quarter of 2022, one can expect the apartment segment to perform better than last year,” he said.
“The real estate market will continue to attract foreigners with its new developments, lucrative opportunities and investor-friendly policies,” Shobeiry said.
Q1 Popular Apartment Communities
The apartment sector, which saw near double-digit price growth in the first quarter, saw an overwhelming response from buyers, pushing average rates up to AED 1,098 per square foot.
Jumeirah Beach Residence, Business Bay and Dubai Marina – with annual price growth of nearly 16%, 10% and 3.4%, respectively, led the apartment market, according to Zoom Property Insights.
Downtown Dubai, growing around 8%, and Jumeirah Lake Towers, growing 10.5%, are other communities that remained popular among buyers during the first quarter. Palm Jumeirah also recorded a massive increase of nearly 22% and remained Dubai’s most desirable community.
Q1 Popular Villa Communities
Continuing their dominance, villa prices rose just over 20% in the first quarter. At the end of March, the average price of villas in Dubai was calculated at AED 1,267 per square foot.
Among the various villa communities, Arabian Ranches and the Jumeirah Islands remained the preferred choice for buyers, as they reported an annual increase of just over 40%. They were followed by The Lakes with price growth of around 37%, while Jumeirah Village and Palm Jumeirah (with around 35 increases each) were other popular villa communities in Q1 2022.
Besides them, Meadows, Jumeirah Park and Emirates Hills also remained popular with buyers with growth of 34.5%, 33.5% and 32.9%, respectively.
About the Zoom property (www.zoomproperty.com)
Zoom Property is an emerging property portal in the UAE with a primary focus on the Dubai, Abu Dhabi and Sharjah markets. The portal also offers international properties in Saudi Arabia, UK and other regions on the platform to facilitate buyers and renters. It is also popular among developers, real estate brokers and property sellers.
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