Here are some highlights from Betterhomes’ Q3 2022 Dubai Real Estate Market Report. The full report can be downloaded below.
Despite rising interest rates and the strong dollar, the Dubai real estate market continued its relentless growth throughout the summer, posting a record quarter for transactions at the Dubai Land Department. Betterhomes similarly witnessed a record summer for new sales agreed, so expect to see those healthy DLD numbers continue through to the end of the year.
While there are still pockets of runaway prices, on the whole prices have stabilised over the past quarter and we now seem to be in a period of strong transactions and sustainable price growth – long may it continue!
Over the last two years, Dubai has been rediscovered by the worlds ultra wealthy and is now at the top of many ultra high networth individuals shopping list as a country that offers security, safety and an attractive tax regime, with an average rise of 64% in the number of monthly transactions compared to the previous year.
Dubai’s recent population growth continues to put pressure on today’s rental inventory and we are seeing rapid price increases in the most popular areas, with occupancy across Dubai at a 5 year high.
This is welcome news to investors, but squeezed tenants are having to look further afield for better value, and overall transiency in the rental market has dropped significantly as tenants look to stay put and renew, rather than face today’s prices.
In the current competitive market, one cheque payments are becoming more prevalent again, making up 32% of all Betterhomes transactions, up 8% year on year.
With the World Cup around the corner our Short Term Rentals Team is gearing up for a record quarter, and I think Dubai could experience a mini-Expo effect with so many football fans in the region, many of whom will use Dubai as a base. Expect lots more activity therefore from overseas buyers in the coming months and a very strong quarter to top off what has already been a record year for Dubai real estate
Looking ahead, we expect to see activity levels in the real estate market continue to perform well over the last quarter of 2022.
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