MBR City is likely to lead the delivery of residential units in Dubai this year as developers have accelerated the pace of projects to ensure timely completion and handover of projects, a positive sign for the market.
The mixed-used development led the chart by delivering the most number of residential units in Dubai during the first quarter and is expected to retain its position in rest of the year, according to the Zoom Property insights.
Almost 6,700 units were delivered in the Dubai property market in the first quarter, while the delivery of further 31,000 units is in the pipeline during the rest of the year.
According to the data, the Dubai property market continues to show promising results, with May 2022 recording around 5,440 transactions, which shows a growth of 33 per cent on a year-on-year basis. The average prices have increased by around 11 per cent, with the apartment and villa sectors showing growth of 9.5 per cent and 19.8 per cent, respectively.
Ata Shobeiry, CEO of Zoom Property, believes the property market will continue its upward trajectory despite the threat of the upcoming global recession.
“The property market is in a strong position to show resilience against the upcoming global recession and continue the upward trend that started last year. While the global recession poses a serious challenge, there will be a limited impact on the market as it’s backed by new developments, the influx of overseas investment, and strategic planning of the government,” he said.
Top areas in Q1
The first quarter of 2022 saw MBR City getting a massive chunk of units delivered out of the total 6,700. According to data, around 22 per cent of the total units were delivered in this mixed-use development.
Dubailand and International City with 16 and 15 per cent ranked at number 2 and 3 on the list of areas with the highest supply delivered in Q1, respectively. Jumeirah Village Circle, with over 10 per cent, was another popular community vis-à-vis the number of units delivered.
Future trend
MBR City is expected to continue its dominance when it comes to receiving the supply of units by offering more than one third of the residential units in Dubai. It will be followed by Dubailand (15 per cent) and Downtown Dubai (11 per cent).
Other than that, Business Bay, Dubai Creek Harbour, Al Jadaf, and Jumeirah Village Circle are other areas that will receive the supply of units for the rest of 2022.
“Demand for villas and apartments in Dubai will remain strong as investors find it the best option to invest in a booming market. More than 4,000 millionaires or high net worth individuals are going to migrate to the UAE this year and it will benefit the real estate market,” Shobeiry said.
A strong H1
The Dubai property sector concluded the first half of this year on the upward track with nearly 43,000 sales transactions, the total value of which exceeded Dh114.5 billion, according to W Capital Real Estate Brokerage.
In June 2022, the market recorded 8,833 real estate sales transactions worth Dh22.69 billion, which is the highest number ever for the month since June 2009, when sales transactions amounted to Dh22.92 billion.
When compared with the overall performance of June 2021, the last month witnessed an increase in transactions by 42.6 per cent, with an increase in value of 55.4 per cent.
