What to expect from Real Estate Market in 2022?
Residential unit prices will continue to grow in the UAE in 2022, but at a slower rate, even though there is a strong supply of new units in Dubai and Abu Dhabi.
According to reports, UAE will witness a supply of 38,500 apartments and 3,800 villas, almost similar to the previous year. Similar to the previous year, some of this is predicted to be overdue or will take place in the next year.
In Abu Dhabi, 2,000 residential units are to be given on Reem Island, 2,000 each on Al Raha Beach and Yas Island, and 1,200 on Saadiyat Island.
We will continuously witness new launches in Dubai from third-party and master developers with construction-linked and post-completion payment plans.
We expect many new project announcements in 2022 in the UAE. In 2022, many master plan communities in Ras Al Khaimah and Sharjah are to witness additional supply. In Al Ain, a small number of buildings located in the Town Centre are expected for handover as well as certain private villas spread across various areas of Al Ain.
Property Prices, Sales
The market began the year at a very high peak as Dubai recorded 5,797 sales deals worth Dh16.69 billion. It was the best January ever recorded, according to Property Finder.
In January 2022, 53 percent of all dealings were for ready/secondary properties and 47 percent were for off-plan properties. The off-plan market had 2,706 properties worth Dh5.32 billion while the ready property had 3,091 dealings worth Dh11.37 billion.
2022 will continue on an increasing rate when it comes to price and sales volumes in popular prime areas.
Off-plan in high demand
The off-plan area will not cool down anytime soon because of investor attitude, attractive prices, the lure of Dubai, and good projects coming up in the market.
The increase in the sales volume of off-plan properties displays those buyers and investors feel confident about the market. They believe that the market will provide good returns to them.
Sale price growth in Dubai is to continue in 2022. Villas will be in the focus of demand and a smaller number of new handovers in good communities will further lead to higher sale prices.
In Abu Dhabi, the villa market for sales is expected to remain active because investors will be more sensitive to the price of the units.
In conclusion, residential unit prices will continue to grow in the UAE in 2022, but at a slower rate, even though there is a strong supply of new units in Dubai and Abu Dhabi. We will continuously witness new launches in Dubai from third-party and master developers with construction-linked and post-completion payment plans. In January 2022, 53 percent of all dealings were for ready/secondary properties and 47 percent were for off-plan properties. The off-plan area will not cool down anytime soon.
