Dubai real estate trends in Q2 2022: supply and demand for residential properties increased
Dubai continues to show impressive real estate market growth despite inflation. Experts from Asteco, the real estate management company in the UAE, provided a comprehensive overview of the Dubai real estate market, factors contributing to its growth, recent laws and more.
According to Asteco's report on the UAE real estate market for the second quarter of 2022, both supply and demand have increased in the country.
The report states that the first half of 2022 has had a number of successful and noteworthy projects. Initially, the booming secondary market contributed to this trend.
The supply of apartments and villas significantly increased: 6,000 apartments and 260 villas were completed in the first quarter of 2022. In the second quarter, the number of properties reached 7,000 apartments and 520 villas. By the end of the year, 22,000 apartments and 3,300 villas are expected to be completed. However, no new offices have been delivered in the past three months.
Average prices of apartments, villas and offices for sale rose by 20%, 26% and 19% year-over-year and by 4%, 4% and 2%, respectively, over the quarter.
Rental rates continued to rise with the same momentum as last year. Annual growth was 15% for apartments, 23% for villas and 13% for office space, while average quarterly growth was 4%, 6% and 3%, respectively.
Despite the geopolitical issues, rising commodity and energy prices, these factors improved Dubai's safe haven status. For this reason, Asteco expects rental rates to remain high in the second half of the year, but rental growth will eventually slow down as oversupply remains an unresolved issue.
Source: Arabian Business