Dubai’s real estate sector had a remarkable year in 2022, says Avalon Properties’ CEO

Twelve dynamic months for Dubai’s real estate market have flown by. December 2022 was a busy month for the emirate’s property sector, recording sales transactions valued at Dhs26.05bn sales. The total number of transactions registered was 9,491.

Avalon Properties CEO Ahmad Ibrahim said “We’ve been closely watching the fast pace of Dubai’s real estate market performance and growth over the past two years, and especially in 2022. The supply and demand of properties are abundant in the emirate’s market. All the events around have been in sync to increase the momentum of the city’s economy in a promising way. Dubai’s rapid and confident recovery from Covid-19 has also significantly contributed to the economy of the emirate booming longer.”

Avalon Properties also experienced robust growth during this period, growing its operations across the UAE, covering Abu Dhabi, Dubai, and Sharjah.

Ibrahim added that 2022 was an active year for Dubai’s property sector. According to him, the value of total property transactions seen in 2022 was the highest the city recorded in the last 10 years. With Dubai ranking first globally in attracting direct foreign investments during the first half of 2022, according to the Financial Times ‘FDi Markets’, investors are confident about the emirate’s economic stability and bright growth prospects.

Ibrahim said that July stood out as the highest month for sales transactions with Dhs2.99bn recorded for existing properties and Dhs455.93m for off-plan properties, with November achieving the best performance for off-plans properties with Dhs1.20bn.

Sales that broke all records in Dubai for 2022 included the most expensive villa in Palm Jumeirah, which sold for Dhs59m, followed by the off-plan mansion, which sold for Dhs302.5m, on Palm Jumeirah Island.

In 2022, the value of sales transactions increased by 43.9 per cent over 2021. The fourth quarter of 2022 witnessed a total of more than 29,216 transactions worth nearly Dhs82.12bn. Both the volume and value of transactions were the highest for the past 10 years.

“As a result of the city’s recovery from the pandemic, hosting events such as Expo Dubai 2020, luxurious lifestyle, and ongoing development of high-end infrastructure development, we have witnessed an upward trajectory since the end of 2020, with a steadier and more notable rise in prices this year. Prime real estate prices in Dubai rose by 89 per cent from October 2021 to October 2022,” said Ibrahim.

Dubai’s property sector is expected to witness strong growth in 2023, with an expected rise of 13.5 per cent rise in property prices.  This bodes well for Avalon properties, which recorded sales close to the Dhs1bn in 2022.

The company has also announced that it’s planning to expand during 2023 in the GCC and MENA region by establishing two new international branches in both Riyadh and Cairo cities.