DETAILED INSIGHTS OF DUBAI PROPERTY PRICES IN 2022

Property purchase in Dubai is on the rise due to the city's favorable infrastructure, opportunities, and lavish lifestyle. Nobody can resist wanting to live or buy a property in a place where tourism is at its highest, and you can enjoy the best eateries, live amongst a diverse population, and have a variety of cultures and experiences.

However, if you are opting for the possibility of Dubai houses for sale, then it's crucial to look at Dubai's property prices, houses in Dubai, and the market values of your preferred property.

The market changes according to the economy, demand, inflation, urgent financial news, imminent natural disasters, investor response to business financials, and price speculations. However, most of the market changes are predicted by forecasts of various analysts with detailed insights regarding Dubai houses.

If you are interested in finding Dubai houses for sale, then this article will help you analyze the insights of the forecast of 2022 property prices.

Dubai's property prices are predicted to rise in 2022.

Dubai's economy has shown staunch growth in the past year with an increasing gross domestic profit. In 2020, Dubai's GDP was total up to around 410.16 billion U.S. dollars. In 2022, the GDP is predicted to go higher and beyond 427.93 billion U.S dollars.

This also implies that the prices in the market will also show an increase in demand and prices due to the stable economy. According to real state estate, the prices of houses in Dubai are anticipated to rise in the upcoming year. This statement is supported by Expo 2020 and the demand for premium units.

Arqaam Capital states that the real estate volumes should ideally continue their long high record. Knight Frank, a real estate consultant also anticipates prices of Dubai's houses for sale to bounce amongst 4% to 6% in 2022. Furthermore, Haus & Haus, a brokerage firm analyzes 18 months of future market requirements and concluded that Dubai property prices will resume their journey uphill while maintaining a more sustainable speed in comparison to the rampant rise of rates in 2021.

Arqaam Capital also mentioned the reasoning for the high prices of Dubai's houses in their MENA real estate outlook report released in December. The report expressed that increased real estate volumes are being produced through the rising trend of people working from home, the elevated net worth of marginal customers, visa reforms, and the output of many desirable products.

Nonetheless, a majority of real estate analysts have agreed with the notion that Dubai houses will become more costly in 2022, and the current year embarks several new trends in the market that impact the prices of property purchases.

Forecasted trends in Dubai’s Property Market in 2022

A group of eleven experts from The Reuters surveyed genuine estate analysts’ opinions. The survey explained that houses for sale in Dubai will eventually advance by 5% in 2022, which is a 2.5% times rise of the forecast gathered three months ago. In 2023, the experts expect a rise of 3% price value in the real estate market as well.

However, to summarize a complete analysis, there must be an inclusion of other firms' factual views and statements too. Asteco foresees a 7-9% growth in the rental cost of residential and commercial houses in Dubai. The luxurious independent houses for sale in Dubai are set to increase by 8-14% in the first quarter of 2022.

In September 2021, the UAE publicized new visas such as the Green Visas and Freelance Visas. These were designated for self-employed people and do not mandate a sponsorship. New reforms with the inclusion of the high-quality lifestyle have enabled people to be invested in moving to Dubai or finding Dubai houses for cheap prices so they can avail themselves of all opportunities.

Residential Stock in 2022

While overlooking the price value of Dubai's properties, it's vital to look at the trend of the residential stocks in the past and the prediction of the future.

The Dubai Residential Market review of 2021 notes that there are about 100,000 units left to be constructed before the year ends. By the end of 2021, around 10,000 sq. m. of office space was built in Dubai getting the entire stock up to 9 million sq. m.

By 2022, around 19,000 sq. m. of floor space is expected to be yielded in Abu Dhabi. Also, there is a chance of 30-40% of construction expected in 2022 to be shifted towards the next year 2023 due to delays or unforeseen circumstances.

Dubai's rental prices in 2022

When deciding to purchase a property, the prices are the most essential factor to look into. Thus, the forecast of the rental prices of Dubai's houses is important for the interested buyers to be informed.

Zoom Property Insights states that in the third quarter of 2021, the Dubai real estate market recorded a 14% increase in the rent of cheap houses for sale in Dubai and a 30% rise in luxury houses in Dubai.

Renters who are looking for houses for a short-term basis are more likely to select waterfront neighborhoods like Dubai Marina, Bluewaters Island, and Palm Jumeirah. In regards to options of cheap houses for sale in Dubai, many long-term renters prefer the Jumeirah Village Circle, Bur Dubai, Al Nahda, and Dubai Silicon Oasis. Furthermore, renters in search of luxury households tend to opt for Dubai Marina, JBR, and Palm Jumeirah.

Impact of Corona

The coronavirus pandemic brought a long list of impacts to the world in terms of social, economic, and health systems. The real estate market also took a major recession as the world was hit with an astounding number of cases, so did Dubai's property prices and rates.

In 2020, Dubai's economy survived through the global pandemic bringing major changes into the functions in the market. However, it soon started showing recovery in 2021 with the registration of 55,651 property deals in Emirates with the value of AED 135.4B (USD 36.7B). This is a stagnant increase of 88.39% juxtaposed with the whole year of 2020.

To conclude:

In 2022, the real estate market value is estimated to keep increasing, with the property prices for houses in Dubai. If you are interested in purchasing a house in Dubai, whether it's a cheap house for sale or an independent luxurious one: contact Inspire, the leading real estate agency to find the best house in Dubai and fulfill your desires.