A recent real estate report revealed that the real estate market in the UAE United Arab Emirates performed strongly during the second quarter of 2022, dispelling the unprecedented repercussions and mounting concerns regarding global inflation, The report showed continued high demand for villas and townhouses, and a rise in rental rates with momentum similar to that recorded over the past year.
1,300 residential units in Abu Dhabi
The report, released by “Asteco,” revealed the delivery of 1,300 residential units in the Abu Dhabi housing market, spread across various areas of Abu Dhabi, with a particular focus on Al Raha Beach and Al Reem Island.
3,400 apartments in projects under construction
The report noted significant progress in the construction phases of projects, most of which are located in Al Raha Beach, Yas Island, and Al Reem Island, and a total of 3,400 apartments are expected to be delivered by the end of this year in the emirate. In terms of rentals, apartment rental prices have not changed much, although some high-quality projects have seen new leases at prices above market rates. On the other hand, some landlords continue to offer reduced rents and attractive incentives to ensure quick occupancy.
Increase in residential supply in Dubai
According to the report, the number of apartments on the market in Dubai rose from 6,000 units in the first quarter of 2022 to 7,000 units in the second quarter, and the number of new villas delivered doubled to 520. The report indicated that the majority of new deliveries were in newly developed communities such as “Damac Hills” and ”Dubai Hills Estate,” ”Wasl Gate,” and ”Port de la Mer,” and predicted the delivery of another 25,000 residential units by the end of the year.
Slight Increases in Rental Value
In the same context, average rental value increases during the first quarter reached 41% for apartments; 61% for villas; and 31% for offices, while annual growth rates stood at 15%, 23%, and 13%, respectively. Demand remained strong for larger units, particularly villas and townhouses with usable outdoor spaces.
