Dubai luxury market in 2022 continues to break price and sales


Dubai’s residential and ultra-luxury markets continued their upward trajectory in 2022, with demand from international buyers driving stiff competition and several record sales. Driven Properties in Dubai is a leader in the luxury and ultra-luxury market. Founder and CEO Abdullah Alajaji recently sat down to discuss market dynamics in 2022 and the drivers of Dubai’s property boom.

What does the current Dubai market look like coming out of Q1?

AA: We’ve just had one of the best quarters on record. Total transaction volume from January to March 2022 was the highest Q1 to date, with sale values ​​exceeding $15.3 billion and over 20,000 transactions. Apartment sales accounted for most of these transactions. VEFA sales (new programs) increased by almost 95% and sales on the secondary market (resales) increased by almost 75%. Compared to Q1 2021, there were 77% more apartments and 58% more villas were sold.

This general upward trend in rental and sale prices of properties in Dubai can be attributed to the emirate’s effective policies, strong recovery from the pandemic, as well as visa reforms which are contributing to Dubai’s popularity as a long-term residence. We have seen strong demand for spacious villas and townhouses, which is part of the post-pandemic buying trend. Branded residences continue to be a popular choice with locals and expats alike.

What are prices like compared to six months ago?

The luxury segment is outperforming all others and prices continue to climb. This is particularly the case in the ultra-luxury segment where the lack of supply has caused prices to double in certain areas. We recently sold one of the most luxurious projects in Dubai-Sea Mirror, where the average price per villa was around $20 million. Mid-range properties are always popular and sought after. These prices are not increasing at the same rate as in the luxury segment, the increase has been slower, but steady. The affordable segment of the market is the one whose prices have changed the least over the past six months.

Tell us about the culture of Dubai in 2022.

Dubai is a cosmopolitan city where everyone feels welcome, as they have for years. We are very lucky to be in the city which is the bridge between East and West, making the emirate a perfect destination for a second home.

Who are the buyers and sellers you work with?

Buyers and sellers come from all over the world. If I had to identify the most active groups at present, it would be the following: the buyers come mainly from Europe, mainly from France, Germany and Switzerland, with a strong presence of CIS nationals. Of course, locals and Saudis are still an important part of the equation. There is a similar mix on the seller’s side.

What are your predictions for the rest of 2022?

We are entering the second quarter, a sign of increased activity. Some of the largest deals were recorded recently in April, and the first quarter was groundbreaking. Dubai is bustling and teeming with people. One can just get a glimpse of the hotel rates and understand how busy and popular it is. Expo 2020 is now behind us and hotels are still fully booked, many with higher rates than during peak winter season, with no signs of slowing down. Based on this, we expect similar activity in the second quarter. We are closely monitoring all the changes that occur and have many reasons to remain optimistic in the months to come.

Driven Properties is an exclusive member of UKTN Global Propertiesa consumer marketplace and member network of elite brokerages selling the most luxurious homes in the world.