Source: International Banker —
In the nearly two decades that I have been in real estate, I haven’t witnessed a market with the level of activity that Dubai has shown in these past two years. Over the course of 2022, the market hit a value of AED 240 billion (GBP 53.07 billion), recorded across more than 88,000 transactions. In terms of volume, this is 38 percent above the market peak reached in 2013.
Interest-rate spikes led to a slight decrease in activity from financed buyers, but a steady influx of cash buyers was ready to fill that gap. On the whole, there is a relatively even split between cash and mortgage transactions, which demonstrates a very healthy market. It’s fair to say at this point that this isn’t just a post-pandemic boom—the market has found its momentum because of several other factors.
Off-plan makes a comeback
Off-plan sales (buying a property before construction) accounted for roughly 44 percent of total transactions, demonstrating how strongly that market segment has bounced back since 2020 and early 2021, when secondary sales dominated. Dubai has always been a city that looks to the future, and its robust off-plan activity highlights not only its vision for growth but also increased investor confidence in what the city has in store for the years ahead.
Brands stand tall
Several high-profile off-plan projects were launched in 2022. These included Six Senses Residences, Orla and Ava by the Dorchester Collection, Palm Flower and the Ritz-Carlton Residences Creekside. It’s worth noting that nearly all of them are branded residences—something about which investors are very keen. There is no denying the power of a known brand, and any residential project with a brand association immediately attracts a high level of interest.
Coastal living at its finest
Another notable feature shared by the projects listed above is that they are all waterfront projects. Since the early 2000s, there has been an explosion in beachfront communities, starting with Jumeirah Beach Residence, part of the hugely popular Dubai Marina district and the template for beachfront living in Dubai. Since then, we have seen the rise of Palm Jumeirah, Pearl Jumeirah, Jumeirah Bay Island, Bluewaters Island and Emaar Beachfront, with several new communities still to come.
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