Residential property prices growth in the UAE will continue in 2022, but at a slower pace despite a strong supply of new units is expected to come online in Dubai and Abu Dhabi. Residential property prices growth in the UAE will continue in 2022, but at a slower pace despite a strong supply of new units is expected to come online in Dubai and Abu Dhabi.
“We will continue to see new project launches (in Dubai) from master and third party developers with construction-linked and post-completion payment plans,” Asteco said in its annual report released on Thursday.
The consultancy expects several new project announcements are expected in 2022 in the UAE capital because a number of developments that were previously put on hold are expected to restart.
“In 2022, many master plan communities in Sharjah and Ras Al Khaimah are likely to see significant additional supply. In Al Ain, a smaller number of buildings located in Town Centre, are expected for handover as well as some private villas spread across different areas of Al Ain,” said HP Aengaar, CEO at Asteco.
The property market began the year on a very high note as Dubai recorded 5,797 sales transactions worth Dh16.69 billion last month. It was the best January ever on record, according to Property Finder.
In January 2022, more than half – 53 per cent – of all transactions were for secondary/ready properties and 47 per cent were for off-plan properties. The off-plan market transacted 2,706 properties worth a total of Dh5.32 billion while the ready market transacted 3,091 transactions worth Dh11.37 billion.
Comparing it to January last year, the rebound seen in the off-plan market in January 2022 has been significant as off-plan sales transaction value increased by 307.88 per cent and volume increased by 183.05 per cent year-on-year.
Ata Shobeiry, CEO at Zoom Property, said 2021 ended on a strong note and 2022 started on the same pattern, which is evident from the staggering numbers the market produced in January. In Abu Dhabi, the villa sales market is expected to remain relatively active because investors will continue to be more sensitive to the price point of units
