In August 2022, the number of villa sales in Dubai was reported to have increased significantly. This year, the market is expected to continue growing.
The increasing number of international investors and ultra-high-net-worth individuals who have started to actively invest in the Dubai property market has led to a shift in their investment horizon. They are now more likely to buy long-term properties.
The outbreak of COVID-19, which was declared by the WHO as a global pandemic on March 11, 2020, has raised concerns about the potential impact of the disease on the real estate assets globally. The government of Dubai immediately launched various measures to address the situation, such as implementing the TESS economic support program for the banking sector.
The proactive measures taken by the government of Dubai have resulted in an increase in the number of international travel corridors and the overall market activity.
The initial effect of the pandemic on the residential market was the increase in the number of people working from home. The initial effect of working from home increased the demand for villas and townhouses. The lower down payment requirements combined with declines in interest rates and the improving sentiment toward the market also resulted in an increase in the number of new entrants.
The number of villa sales in Dubai continued to increase in August 2022. According to data released by Dubai Land Department, the total sales volume of villas reached 2,381, with a combined value of over AED7.7 billion. This accounted for 31.74% of the total sales in Dubai for August. This represents a significant increase of 50.4% vs. August 2021.
It’s safe to say that the Dubai property market has become a gold mine for investors. The rise of real estate prices in Dubai has made it a great investment opportunity. With the increasing number of investors, the prices are expected to continue to increase.
Despite the various global challenges that it faces, Dubai continues to produce remarkable numbers. For three months in a row, it has managed to cross AED80 billion ($22 billion) in sales. This demonstrates the city's resilience and ability to compete against other global competitors.