Ryan Mahoney (Dubai, UAE) has extensive experience of the region’s property sector. This article will explore skyrocketing demand for secondary real estate across Dubai.
In the first quarter of 2022, investors from the United Kingdom, France and Italy featured prominently among international investors in Dubai real estate. Investors from Pakistan and India made significant investments in the same quarter, which also saw a substantial increase in investors from Canada, China, Russia and Lebanon.
In 2022, the Dubai property market saw its second highest April ever in terms of transactions, with a total of 60% of transactions in the secondary market – representing a 46% increase in volume and a 67% increase in value year-on-year in the wake of a record-breaking March.
April 2022 saw a total of 7,009 sales transactions in the Dubai real estate market, equating to a net value of Dh18.3 billion, according to statistics published by the Dubai Land Department. April 2022 ranked as the second highest April on record for both sales value and volume, the highest being April 2009. In the off-plan market, top areas for sales transactions in the first quarter of 2022 were townhouses and villas located in Arabian Ranches-3, while Dubai Hills Estate dominated in terms of secondary market purchases.
Despite economic headwinds created by inflation combined with the threat of emerging COVID-19 variants, the first quarter of 2022 was characterized by an increase in both international and domestic demand across all types of residential assets in Dubai, with appetite and buyer confidence remaining strong – particularly among high-net-worth investors.
Betterhomes Group Managing Director Richard Waind indicated that while the original recovery of demand seen at the start of the price cycle was driven by residents taking advantage of value in the market, recent demand was largely driven by an influx of new residents. Although Dubai’s population fell by 8% at the peak of the COVID-19 pandemic, it subsequently rebounded by more than 18%.
Dubai’s real estate market is predicted to continue on an upwards trajectory, with more foreign investment pouring into the market due to economic stability and recent visa reforms.