Dubai’s real estate market experienced a significant increase in growth in 2022, with an increase of 51% in transaction volumes and a 55% increase in the value of transactions between January and November, as reported by JLL’s 2022 Year in Review. This growth was largely due to an increase in foreign buyer demand. Dubai delivered a total of 38,000 residential units, bringing the total housing supply to 680,000 units. Meanwhile, Abu Dhabi delivered 6,000 units, increasing the total housing supply to 279,000 units. The average residential sales prices in Dubai increased by 10% in the fourth quarter of 2022, while Abu Dhabi saw a 3% increase in the same period. Dubai also experienced a significant increase in rental prices, with a 27% growth, while Abu Dhabi rental prices remained flat.
Dubai’s office market saw a strong turnaround in 2022 due to favorable business conditions and the limited availability of high-quality office spaces. Dubai’s CBD Grade A rents rose by 21% YoY in the fourth quarter of 2022. The technology, finance, defense, and other professional services industries accounted for a large share of office inquiries and there was a significant influx of new entrants, driving up aggregate occupier demand. Dubai’s stock of office space increased by 30,000 sqm to reach 9.1 million sqm, while Abu Dhabi’s office space increased by 8,000 sqm to reach 3.9 million sqm.
Dubai received 12.82 million, overnight visitors, between January and November 2022, which was 15% lower than pre-pandemic levels but still a significant increase from the previous year. Dubai’s hotel occupancy rate was 72% over the same period, an improvement from the previous year, and the average daily rate rose by 22% YoY to $184.
Read more: Business Bay Leads Dubai’s Real Estate Market With Record Number Of Transactions In 2022
FAQs:
Q: What was the cause of Dubai’s real estate market growth in 2023?
A: Dubai’s real estate market growth in 2022 was largely due to foreign buyer demand, as reported by JLL’s 2022 Year in Review.
Q: What was the increase in Dubai’s residential sales prices in the fourth quarter of 2022?
A: The average residential sales prices in Dubai increased by 10% in the fourth quarter of 2022.
Q: What was the growth in Dubai’s rental prices in 2022?
A: Dubai experienced a 27% growth in rental prices in 2022.
Q: What industries accounted for a large share of official inquiries in Dubai?
A: The technology, finance, defense, and other professional services industries accounted for a large share of official inquiries in Dubai.
Q: How did Dubai’s hotel occupancy rate change in 2022 compared to the previous year?
A: Dubai’s hotel occupancy rate was 72% between January and November 2022, an improvement from the previous year.
