Dubai Real Estate Market Overview February 2022

Compared to past years, February’s performance has set a new record for the month.

With over 6,300 transactions and a 124% rise over last February’s sales value, the Dubai property market sold over AED 16.4B worth of property, a 70% increase over the previous year’s February sales. Mortgages fell by 27.3 per cent compared to February 2021 to 1,580 transactions for AED 6.6 billion (-16 per cent in value vs February 2021), which may imply a bigger number of investors than end-users in the real estate market. While the price of off-plan apartments rose by 15% compared to February 2021 and 32% since February 2014, all main property categories saw a rise in pricing.

Transactions Breakdown

The bulk of transactions was in the realm of apartment sales.

  • More than 4,000 flats were sold, a 57% increase over the previous year, totalling AED 6.8 billion. ​​
  • More than 1,150 villa sales were made, a 74% increase over the previous year, totalling AED 3.1 billion. 
  • Nearly 870 plots were sold, representing a 170% increase over 2021 sales and totalling AED 6B.
  • More than AED 450M worth of commercial real estate was exchanged in over 261 transactions, a 54 per cent increase over 2021. In Feb. 2021, there was just one commercial off-plan transaction, compared to 33 in Feb. 2022.

Top Performing Areas

More than 600 off-plan and ready-to-move properties were sold in the thriving commercial district of Business Bay.

Apartments

  • Oversight: 349 transactions at Meydan One
  • Business Bay – 243 deals ready to go

Villas

  • Villanova – 147 transactions off-the-plan
  • The Dubai Hills ready-made: 33 deals

Commercial

  • Off-Plan: Jumeirah Lake Towers – 14 sales
  • Ready-Made: 87 deals in Business Bay

Property Sales Volume by Price Range

AED 1-2 million properties accounted for more than 2,100 of the total sales volume, making over a third of the entire sales volume.

More than 2,200 transactions under AED 1 million were performed, accounting for 35 per cent of total sales.

From the ages of 36 to 40, demand for ready-to-live-in villas increases. In February of 2022, this age group bought over 10% more villas than they did this year and now accounts for 24% of purchasers in this category.

Off-plan vs Ready Property

The monthly sales of pre-built and off-plan homes are now deadlocked at roughly 2,500 units. Off-plan sales grew by 111% compared to February 2021, while ready-to-move-in sales grew by just 32%.

Off-Plan Sales Volume

  • More than 494 villas
  • There are 2,084 units.
  • Commuter property: 33

Ready Sales Volume

  • The number of villas: 259
  • There are 1,979 apartments in total
  • 228 square feet of commercial space

Dubai Property Price Change

Demand in the area is evident in the rising property costs in Dubai. Growing anxieties about global violence have not deterred investing.

  • Price per square foot: AED 1,100 (37.30 compared to February 2021)
  • Prepared for Commercial Use: AED 845 ($21.70 as of February 2021)
  • Ready Plot: AED 991 (114.10 vs Feb 2021) per sqft price per square foot
  • This ready-to-move-in villa costs AED 763 per square foot (up from 5.30 in February 2021).
  • Off-plan Apartment: AED 1,558/sqft (15.30 vs. Feb 2021) per square foot
  • Price per square foot for commercial off-plan: AED 993 (1.50 vs Feb 2021)
  • The price of an off-plan villa is AED 839 per square foot (up from $5.80 in February 2021).

Property Supply

New upcoming projects

  • frontline investment management LLC, “DAMAC HILLS (2) – AMARGO 2,” Al Yufrah 2,
  • In Al Hebiah Third, Damac Crescent Properties Llc has developed “DAMAC HILLS – GOLF GATE.”
  • Dar Al Arkan Properties L.L.C. has developed “City Center Residences” in the Burj Khalifa.
  • Welcome Residency by Alseeb Real Estate Development in Al Barsha South Third
  • Binghatti Developers Fze has built “Binghatti Creek” in Al Jadaf.

Completed projects

More than 5,000 homes were finished in over 15 projects in February 2022.

  • Four hundred and ninety-five
  • There are 126 apartments at Binghatti Point.
  • 692 units of Vardon at Akoya Oxygen
  • 640 units of Akoya Oxygen’s Pacifica at Akoya
  • Three hundred and sixty-seven
  • The 449-unit Elite Downtown Residence
  • Residences (1,2,3,4) – 166 units in District One Phase III
  • There are 1,064 flats in Lawnz Residence By Danube
  • There are 24 apartments in Phase II of Sobha Hartland Villas
  • Phase 2 of Madinat Jumeriah Living – 364 apartments
  • Units: 529 Hera Tower
  • There are 33 units of the Acuna brand available at Akoya Oxygen.

Top five projects with the most expensive sold apartments:

  • The Dorchester Collection in Dubai cost AED 69 million.
  • The Royal Atlantis Resort and Residences cost AED 63 million.
  • 48M AED ONE in the Palm Jumeirah
  • Serenia Residences at the cost of AED 45M
  • The Address Residences – Dubai Opera – Downtown costs AED 40 million.

Top five areas with the most expensive sold villas:

  • AED 61 MILLION Emirates Living.
  • 43 million dirhams The View at Dubai Hills Community in Dubai
  • The Amalfi House. It costs around AED 30 million. 
  • AED 22 million Nad Al Shiba Third
  • MBR City has a budget of AED 23 million.

Key Takeaways

  • Both ready-to-move-in and pre-construction properties are seeing high demand, with comparable transaction figures.
  • In February 2022, the market had a total sales value of AED 16.4 billion, a 124 per cent increase over the previous month.
  • Property purchases under AED 2 million accounted for 68% of all sales.
  • Compared to February of last year, mortgage transactions dropped by 27.3%, showing an increase in investors (cash buyers).

While cash and mortgage sales of ready residences grew by 48.1 per cent, Oqood (contract) registrations, representing 42.9 per cent of total property transactions, decreased by 5.8 per cent.

According to the report, for Dh68.9 million, an off-plan 5-bedroom apartment in Business Bay sold for the highest price recorded in February’s transactions. Overall, homes built by Emaar, Damac, Nakheel, Azizi, and Dubai Properties occupied the top five spots in the sales rankings (4.9 per cent).

According to research, Meydan One, Business Bay, click here Dubai Creek Harbour, and Jumeirah Village were among the most popular destinations for off-plan sales this month.

Al Furjan (9.3%), Jumeirah Village (8.5%), Business Bay (7.3%), and Dubai Marina (9.3%) had the most transacted ready residences. Damac Lagoons (10.5 per cent) and Al Furjan (4.9 per cent). Since 2010, Jumeirah Village and Al Furjan have sold the most residences in a month, according to the ValuStrat analysis.

Further, There are a number of December Global Holidays that come in December every year. The people wait warmly for these holidays to enjoy their events and make them memorable. These include Kwanzaa, Boxing Day, and St. Lucia Day.

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