Record performance in the Dubai real estate market in 2022

The Dubai Land Department reported the highest sales volume ever, exceeding 72 billion $ in 2022. The growth has been enormous compared to the previous three years, when the total annual figure was about 80 billion $.

The most profitable months in 2022 were December and November with sales of 7 and 8.2 billion $, respectively. The real estate market of the emirate broke records not only in terms of value, but also in terms of sales, while maintaining positive dynamics to date. 

Why do sales continue to grow?

After falling sales levels during the Covid-19 pandemic, the real estate market has fully recovered, as has the general economic background in the UAE. The stable strengthening of positions is due to the many advantages of the country, which are obvious to investors.

• Economic initiatives from the government
• Market Stability and Predictability
• Transparency of the transaction procedure
• Stable economic situation in the country

Luxury home sales in the emirate posted the highest jump in the world, with sales up nearly 89%. In the ranking, Miami and Tokyo took the second and third places with a significant margin, their growth was 30% and 17%. Predictions by many analysts agree that Dubai will continue to strengthen its leadership position throughout 2023. The premium segment has now stabilized in price, but due to record demand, an increase of 10-20% is possible.

The most popular areas for buying a home were and still are: Jumeirah, Downtown Dubai And Palm Jumeirah. The last one on the list is consistently leading in the sale of villas. 

According to analysts, the real estate market in Dubai will continue to grow throughout 2023. This can be explained by continued demand and price stabilization, while the situation in other world markets is rather complicated.

The danger that the inflated "bubble" will still burst

Many mistakenly think that a “bubble” has formed in the UAE market, and in the near future it will burst, prices will collapse. But this is not the situation. Firstly, the state is pursuing a very competent policy. Recall that in 2014 the growth in value was much higher than today, and yet the “bubble” did not burst. The cost has slowly gone down. Secondly, there is the global rating of the Global Real Estate Bubble Index, which measures the possible revaluation of housing. Here Dubai is in the "green" zone, that is, the threat of a "bubble" is absent, and the price is not exaggerated. Thirdly, the UAE is in a continuous process of development every day, today it is a city of business and new technologies. Representative offices of the largest companies are located here: Google, Microsoft, Kaspersky Lab, DHL and many others.