The Dubai property market is heading for a strong end to the year 2022 as it recorded steady and persistent growth in the third quarter on strong demand from investors and end-users.
Latest data from the Zoom Property Insights indicates that the market showed a nearly 14 per cent quarter-on-quarter increase in terms of sales volume during the third quarter as 22,423 real estate transactions recorded in the second quarter jumped to 25,496 in Q3.
On a similar note, there was a substantial increase noted in the value of transactions, which witnessed a growth of nearly 18 per cent, from Dh58.99 billion to Dh69.49 billion in Q3. The same growth pattern is expected to be followed in the fourth quarter as the market is gaining a higher level of interest from HNWIs and foreign investments.
Ata Shobeiry, CEO of Zoom Property, said the real estate growth momentum will continue in the fourth quarter and beyond due to strong demand in the market.
“Based on the strong performance of Dubai real estate through Q1 to Q3, 2022, it’s safe to assume that the fourth quarter will follow suit and conclude on a very strong note. The prices are set to increase further, making it very suitable for investors,” he said.
Changing demand
While the market continues to boost, there has been a change in demand among property buyers. They are more inclined towards off-plan properties as they recorded a substantial growth of nearly 31 per cent compared to the preceding quarter, according to the Zoom Property Insights.
Despite getting a higher number of transactions, ready properties witnessed a marginal growth of 2.2 per cent, which came down from 19.2 per cent and 12.6 per cent from Q1 and Q2, respectively. This indicates changing trends in the market and sets the course for a strong fourth quarter, with sales transactions dominated by off-plan properties.
Outlook for Q4
With 8,649 transactions worth Dh24.42 billion in September 2022, Dubai real estate broke a 9-year record. Despite facing global challenges, it marked a month-on-month growth of 13.34 per cent, according to The Zoom Property Insights.
“This shows the outlook for Q4 is positive, and the market is well-positioned to end the year on a strong note. A higher influx of foreign investors is expected to venture into the market, which will give a further boost to sales,” Shobeiry said.
Major contributing factors
Dubai continues to maintain its position as a preferred choice of foreign investors due to its investor-friendly policies. The reformed visa policies and relaxed rules have also played a part in the tremendous growth of Dubai real estate, according to the Zoom Property Insights.
“The towering success of Dubai real estate is a combination of many factors. However, the credit goes to the government, which is always looking out for the interest of foreign investors and property buyers. I expect more expatriate and investor-friendly policies in the time to come that will entice more people to invest in the Dubai property market,” Shobeiry concluded.
