Historically, real estate, you have the golden sector of the VAE, which grows the following year. The growth rate can occasionally fall a little, but it has always been on an upward curve. 2022, however, was in particular a striking year for the property of the VAE. The defendation of the worldwide market trends, the real estate market posted Ann exceptional performance.
Especially the Emirate of Dubai witnessed impressive growth, with real estate prices with 9.5% yo -yo and more than 90,000 transactions that were remembered. Abu Dhabi also saw real estate prices on the revival, in particular in the living sector. Which signal does this send to the world? Well, it confirms, if it was completely necessary, that the VAE is the go-to-compleatment for buying and investigating real estate and setting up companies in allied sectors such as ProPtech. A glance at the sector -based growth of real estate indicates that all verticals have done well, whether it is homes, commercial, hospitality or retail.
Residential sector
Dubai was expected to score highest points in terms of the growth of the living sector. The average real estate prices rose by 9.5% yo -y, with apartment prices with 9.0% and villa prices with 12.8%. Residential rent hit its highest level in 2022 and went with no less than 26.9% yoj. Apartment and villa rental prices rose by 27.1% and 24.9% JoJ respectively. Regarding the volume of transactions, it has accelerated the 2009 record of 81.182 transactions by responding 90,881. Off-plan and secondary turnover also fell by 76.1% and 46.5% respectively.
Wovens -Artoedsprijs rose by 1.5% in Abu Dhabi, with the Avege apartment prices with 0.9% and the average villa prices with 4.1% yoj. Between October and December 2022, the total transaction volumes increased by 14.9% over 2021.
Hospitality sector
In order not to be surpassed, the hospitality sector also witnessed the growth, with the total number of international visits to Dubai that reached nearly 13 million in 2022. The average occupancy rate increased by 5.4 percentage points. The average Revpar rose by 27.8%.
Commercial sector
The demand for commercial space saw a clear increase, with the total number of new lease register of 71,325, an increase of 71.3% compared to 2021. The average occupancy rate reached 88.0% from Q4 2022, an increase from 78.9% to year earlier. Free zones, such as DIFC, DMCC and Tecom, witnessed a characteristic increase in the occupancy rate.
Shops sector
The retail space saw a lot of requirement, much from the food and beverage sector. The total number of ejari (lease) contracts registered in Dubai rose by 10.6% in 2022 compared to the previous year. The demand for compelling and feeding food and beefge offers is growing significantly, and as a result, existing occupiers are expanding their space and new players are coming on the market.
Although the war in Russia-Ukraine has been disastrous for the citizens of Bustelanden, you have had a steel wind effect on the real estate sector of the VAE, which is increasingly being seen as a safe haven for people who flee from the crisis. Moreover, global investors who want to park their money in real estate also choose the VAE as their preference, thanks to a combination of factors ranging from a peaceful environment, stable government, good governance, a high standard of living and the like. Don’t be surprised if 2023 ends in an even more positive note!
https://www.arabianbusiness.com/industries/real-estate/uae-real-estate-defied-global-trends–have-stellar year-in-2022
