UAE real estate market shows strong growth in the first quarter of 2022
According to market analysts, real estate market activity in Abu Dhabi and Dubai remained high in the first three months of 2022 amid a number of government initiatives, economic growth and improving market sentiment. According to real estate market experts, about 3,800 residential and office units were delivered in the first quarter of 2022 in Abu Dhabi’s residential and office market, located in various areas of Abu Dhabi, including Al Raha Beach, Al Reem Island, Yas Island and Saadiyat Island, as well as several other residential areas.
Construction of numerous residential and mixed-use projects located in the Investment Zones is expected to begin in 2022, and the vast majority of Abu Dhabi developers are now considering developing new residential and mixed-use projects in various areas of Abu Dhabi as a result of generally positive market sentiment.
Average villa rental rates increased by 2% in the first quarter of 2022, with some new buildings recording increases of almost 10%. The average annual increase was 5%.
In Dubai, the apartment sector grew significantly in the first quarter of 2022, with 6,250 residential units delivered, up from less than 4,000 in the previous quarter. However, the villa market lagged far behind, with only 250 units completed and delivered. Sales activity in Sharjah, as well as Ajman, remained strong, especially for the villa market. Prices of apartments for sale in Sharjah remained more or less unchanged during the last quarter of 2022, with an average annual increase of 8.0%.