Despite unexpected price increases, Dubai’s properties remain a buyer’s market

The Dubai Land Department (DLD) has launched Dubai’s first-ever official Residential Rental Performance Index in collaboration with Property Finder (RRPI). Moscow came in second in terms of luxury property price increases, followed by three US cities.

According to the newest ‘Global Wealth report’ by property firm Knight Frank, Dubai topped the global rankings for the most increase in luxury home prices in 2021, with Moscow following closely behind. San Diego, Miami, and The Hamptons are the other three US locations in the Top 5.

Last year, the value of luxury houses in Dubai increased by 44%, maintaining a robust trend that began in the second part of 2020. On the Palm, there were several purchases worth more than Dh100 million, while the Jumeirah Bay Island, with its Bulgari houses and resort, attracted record plot deals.

According to market reports, demand for prime houses in Dubai remained stable in January and February of this year, and this could increase further if additional high-net-worth Russian investments are directed to purchases in the coming months.

According to Ejari Registrations, the top regions where the most rental contracts were registered in January 2022 were Jabal Ali First with 1,811 registrations and Naif with 1,760. In 2021, Al Karama (1,754), Al Warsan First (1,601), and Al Suq Al Kabeer (1,457) were among the top five areas. Business Bay (1,317), Al Nahda Second (1,276), Barsha South (1,192), Marsa Dubai (1,174), and Nadd Hessa (1,174) followed (1,098). In January 2022, the top ten areas accounted for 28% of all rental transactions.

Dubai Marina accounted for more than 11% of all residential rental searches in 2021, according to Property Finder’s own statistics. Downtown Dubai, Business Bay, Jumeirah Village Circle, and Jumeirah Lakes Towers were next on the list.

What can we expect in the mid 2022?

With developments like Emaar’s Dubai Hills Estate, Sobha’s Hartland and its latest project, and Dubai Holding’s City Walk extension and the La Mer community, Dubai and Miami could witness significant price hikes at the upper end of the market.

Source: Property News AE