The real estate sector in Dubai exceeded expectations2 min read
The Dubai real estate market saw a significant uptick in new project launches during the first quarter of this year 2022, as the Emirate became the attractive destination for high net worth individuals, including millionaires and entrepreneurs, after a successful handling of the Covid-19 pandemic, good business environment and recent visa reforms, according to a report published by the Emirates Herald
The market reflects positive sentiments as new project announcements during the January-March quarter exceeded pre-pandemic rates. The new projects comprise more than 6,500 residential units, which will meet the high demand of investors.
IRAIC REIT director of research and advisory, noted that a number of projects from prominent developers are experiencing high demand, spurred by off-plan sales and demonstrating Dubai’s renewed investment drive and strong consumer confidence.
The report from real estate consultancy IRAIC REIT highlighted some of the notable new project announcements in the first quarter and how the emirate continues to lead international rankings with the highest branded real estate market penetration, such as: «Beach Mansions in Dubai Harbor by Emaar, La Violeta by Dubai Properties in Villanova and Peninsula by Select Group in Business Bay.
In branded residences, the report identified Six Senses Residences at Palm Jumeirah, St Regis the Residences, Downtown Dubai and Ritz Carlton Residences Creekside as some of the top projects announced during the quarter.
«As demand outstrips supply in key segments, we expect an upward trajectory in inquiries, transaction volumes, pricing and occupancy levels to continue through the remainder of 2022.
For their part, executive directors of IRAIC REIT from the real estate sector added that the increase in prices and demand have boosted developers as they present a new line of real estate projects in Dubai. «Other key factors include the increasing population in the United Arab Emirates and the latest reforms to attract investors and international businesses with strong economic growth. The first quarter has already seen the launch of new projects and the delivery of 6,700 units. It is also expected that the rest of the year will follow the pattern with the anticipated delivery of 31,000 units».
However, the panorama of the crisis between Russia and Ukraine has caused liquidity and investments to Dubai from the affected regions. The United Arab Emirates offers competitive entry prices to foreign buyers and investors compared to other cities in the world, the Emirates herald reported.