Dubai real estate market: 6 things you should know
With the highest number and value of secondary market transactions seen this quarter, it is safe to safe that Dubai’s real estate market is in a good place.
Post-pandemic, the market is expecting to rise even further and the raft of demand drivers set in motion over the last few years are now bearing results, reported CORE. Dubai is becoming a leading gateway city to live, work, and play, underpinning its residential and commercial real estate demand.
Here are the top 6 things you need to know about Dubai’s real estate market right now:
1. About 5,700 residential units were delivered
In Dubai, 13,500 units are expected to be delivered in Q4 2022, moving the yearly forecast downward from 38,000 to nearly 32,500 units. Most deliveries continue to be in the apartment segment with only 22% of YTD deliveries being villas. This creates a supply deficit in the villa market.
2. Dubai’s real estate market records the highest number of sale transactions above $27.2mn this year
The city recorded 16 transactions YTD 2022 in the secondary and off-plan market compared to a total of 5 transactions in 2021.
3. Inflation creates an inherent risk for the residential market
While overall market sentiment remains positive, issues around affordability are emerging. The overall rise in acquisition costs in Dubai’s real estate market is particularly impacting the affordable and mid-market segments with some end-users increasingly being priced out.
4. Steep rises in the rental market
Gross villa yields are up from 5.1% to 5.6%, while gross apartment yields have risen from 6.1% to 7.1% year-on-year. With most districts witnessing over 25% increase, affordability is being impacted and is becoming a growing concern amongst tenants.
5. Demand is overtaking supply in the office market
This trend is due to sharp rises in occupancy levels and very limited quality stock available in the market.
6. Demand for co-working spaces has increased
Companies trying to expand and new market entrants looking to set up operations in the city have both contributed to the rise in deman
source-www.gulftoday.ae
