The property market boom in Dubai will continue and even accelerate strongly by the end of 2022. This is largely thanks to the fact that this market has managed to record steady growth and rise in the third quarter due to strong demand from end users and investors.
The latest statistics from Zoom Property Insights indicate that, in the third quarter, the Dubai property market showed an approximate 14% quarter-on-quarter increase in its sales volume. The total number of transactions was 25,496 compared to 22,423 recorded in the second quarter.
On the other hand, these statists noted a significant increase in transaction values, which witnessed an increase of almost 18%. The values shot to Dh69.49 billion in Q3 from Dh58.99 billion in the second quarter. A similar growth pattern is projected in the fourth quarter as the market continues to hugely attract real estate investors from across the globe.
Ata Shobeiry, the chief executive officer of Zoom Property Insights, indicated that the Dubai real estate growth momentum is expected to continue into the fourth quarter. This is thanks to the strong demand from end users, who are increasingly searching for properties in this city, and investors seeking an attractive investment option.
Changing Demand in the Dubai Property Market
Despite the Dubai property market being set to grow further in the next few years, experts have seen a shift in demand from property buyers. These buyers now prefer off-plan properties. In fact, according to Zoom Insights, the off-plan properties recorded a significant increase of almost 31% compared to the previous quarter.
On the other hand, there was a significant decrease witnessed for ready properties despite them getting higher transaction numbers. These properties recorded a marginal growth of 2.2%, a significant decline compared to Q1 and Q2, which witnessed 19.2 % and 12.6%, respectively. These numbers have significantly shown changing trends in the Dubai property market as the demand for off-plan properties continues to rise.
Outlook and Predictions for Q4
After the strong increase witnessed in the third quarter, experts have predicted that this market will again rise further in the fourth quarter. The 8,649 transactions in September 2022 that were worth Dh24.42 billion made the real estate market in this city break a 9-year record. Even despite global challenges, the market record growth of 13.34% every month.
According to the experts at Zoom Insights, if the market continues at its current pace in the fourth quarter, we can expect another rise in demand for properties in Dubai. This will also be boosted by seasonal factors that drive strong demand from end users.
The Main Contributing Factors to Dubai Property Growth
Multiple factors are believed to contribute to the significant increase in Dubai property growth. Experts have noted that these factors have continuously contributed to the high demand in this market. These factors have also helped to drive real estate sales.
To begin with, Dubai has put in place investor-friendly policies and regulations that have significantly improved the investment environment in this city. These policies have helped to make Dubai a very attractive destination for real estate investors. The UAE has been a highly investor-friendly region for some time now.
Additionally, the reformed visa policies in Dubai, which have historically been more liberal, have significantly contributed to the high demand for property in this city. The visa policy has allowed a significant increase in Dubai's expatriate population to invest in real estate properties and buy into the market.
The relaxed rules concerning foreign property ownership in this city are the other factor often cited as contributing to Dubai's real estate growth. This, coupled with the market's strong liquidity, makes Dubai an attractive real estate destination for local and foreign investors.
These factors and many others have greatly contributed to this city's strong demand for property. As a result, the Dubai property market is expected to post significant growth and increase property sales over the next few years.
The year 2023 will continue the considerable rise in property sales in Dubai. This city is expected to continue offering attractive returns and growth potential to end users and real estate investors. Additionally, the city has been improving its infrastructure, which will help attract more real estate investors.
Therefore, if you plan to invest in Dubai properties, now is the time to move. Contact McCone Properties today for more information on our Dubai real estate services and start investing in the real estate market in this city. We are happy to help you.