Dubai’s real estate market saw a boost in investment from countries including the UK, France and Italy in the first quarter of 2022.  Overall, the emirate’s real estate market recorded its best quarter since 2010, with Dh55.5 billion spent across 20,539 sales transactions.

Rise of the Secondary Market

According to Zoom Property Insights, the secondary real estate market in Dubai accounts for 58% of sales transactions, with the remaining 42% recorded in the primary market. To learn the definition of the primary and secondary property markets, take a look at the embedded PDF.

Many of those in the real estate industry – such as Ryan Mahoney of Dubai, UAE – feel that this upward trend is likely to continue.

Overall Upswing

The value of the property market reached a record high of $11.7 billion in the first quarter of 2022. There are several reasons for this rise, including high liquidity and low-interest rates. Added to this, the period saw a marked comparative increase in the number of people migrating to the UAE.

Despite the challenges of COVID-19 and inflation the confidence of buyers remained strong, which was especially the case regarding high-net-worth investors.

Dominance of Overseas Investors

European investors dominated the market in the first quarter of 2022, although Canadian investment also increased by 116% compared to the first quarter of 2021. Meanwhile, India, Lebanon, China, and Pakistan also made substantial investments in Dubai property, and Russian investment increased by over 65%.

According to experts, the scale of foreign investment in the Dubai real estate market is likely to continue, with further investments from other countries expected as 2022 progresses in response to the market’s high performance.

Market Conditions

These new residents in Dubai continue to push demand in the real estate market, and occupancy levels in freehold properties in the emirate are significantly higher than pre-pandemic. However, in older properties in Dubai, there is an increasing pressure on leasehold landlords to make improvements or offer discounts to secure tenants.

Supply constraints currently being experienced in the secondary and rental markets are serving to push up property prices, along with rising general demand. This situation has also resulted in a surge in off-plan sales, which accounted for nearly half of the transactions in the first quarter of 2022. Apartment units and high-end properties continue to be notably popular with buyers.