First Quarter Real Estate Market - 2022 QUARTERLY REVIEW - AWS
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www.valustrat.com First Quarter Real Estate Market 2022 QUARTERLY REVIEW
VPI
ValuStrat Price Index
Market Intelligence.
Simplified.
REAL ESTATE PERFORMANCE
VPI RESIDENTIAL VPI RESIDENTIAL VPI OFFICE VPI INDUSTRIAL
CAPITAL VALUES RENTAL VALUES CAPITAL VALUES CAPITAL VALUES
79.0 70.6 74.5 105.1
Base: Jan 2014=100 Base: Q1 2014=100 Base Q1 2015=100 Base: Q1 2021=100
3.6% 4.9% 6.9% 1.5%
Q-o-Q Q-o-Q Q-o-Q Q-o-Q
KEY INDICATORS
Source: REIDIN, DTCM, ValuStrat
RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL
OFF PLAN OFF PLAN READY READY RENTS
SALES TICKET SIZE SALES VOLUME SALES TICKET SIZE SALES VOLUME
1.99m 7,936 2.66M 9,586 87,713
AED Transactions AED Transactions (AED p.a)
-10.3% 11.7% 5.1% 17.9% 4.9%
Q-o-Q Q-o-Q Q-o-Q Q-o-Q Q-o-Q
HOTEL HOTEL OFFICE OFFICE OFFICE
OCCUPANCY REVPAR SALES TICKET SIZE SALES VOLUME ASKING RENTS
82% 534 1.37M 529 969
YTD Mar 2022 (AED) YTD Mar 2022 AED Transactions (AED/ sq m p.a)
18.0% 112.7% 25.6% -1.7% 5.5%
Y-o-Y Y-o-Y Q-o-Q Q-o-Q Q-o-Q
Increase Stable Decline
01
MACRO-ECONOMIC SNAPSHOT
• Dubai saw an upsurge of foreign direct Dubai Population
investments (FDIs) amounting to AED
15.9 billion across 378 projects, ranked as first
2,447,000
in the region and third globally in attracting FDI 2015
capital and projects, as per latest data from
Dubai Investment Development Agency 2,699,000
2016
• FDI related jobs created grew 36% YoY to 16,430
2,976,000
new roles 2017
• The top three source countries for FDI capital 3,186,000
2018
inflows were from the United Kingdom at 29%,
France with 19% and the United States at 14% 3,356,000
2019
• Dubai Electric and Water Authority (DEWA)
announced to list 6.5% of its shares or 3.25 3,411,000
2020
billion shares in Dubai Financial Market (DFM)
and officially the first government entity in Dubai 3,478,000
to issue an initial public offering (IPO) 2021
• The US Federal Reserve raised its Interest on 3,496,000
2022-Q1
Reserve Balances (IORB) by 25 basis points,
resulting in a decision by the UAE Central
Bank to increase the base rate for Overnight
Source : Dubai Statistics Centre
Deposit Facility (ODF) by the same amount
• Dubai crude oil (Fateh) stood
Consumer Price Index VS. Housing Index
at AED 305.33 (USD 83.11) per January 2018 – YTD
barrel, up 53.45% YoY as of
January 2022 120
• Dubai International Airport
(DXB) handled 29.1 million 110
passengers during 2021, up
12.7% YoY 100
• Dubai’s population stood at
3,495,902 with a 5-year 90
average growth rate of 5.3%
• As of December, annual 80
inflation was up 1.07% and
Jan
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Jun
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was stable on a monthly basis
• Housing and Other Utilities 2018 2019 2020 2021
Expenses Index dropped
5.56% YoY and saw less than
Housing, Water, Electricity, Gas and Other Fuels General Index (2014=100)
a percent change compared
Source: Dubai Statistics Centre
to the previous month
02
VALUSTRAT PRICE INDEX -
CITYWIDE RESIDENTIAL CAPITAL VALUES
The valuation-based price index, VPI, VPI - Dubai Residential Capital Values
grew 18.8% annually to 79 points. 21 Apartment and 13 Villas Locations
[Base:Jan 2014=100]
However, Dubai’s residential capital
values saw quarterly growth rates slow
from 5.1% in Q4 2021 to 3.6% in Q1 this 100
81.5 79.5 77.2 75.3 79.0
year. On the sub-market level, villas 80 73.3 69.4 66.1 65.4 66.5 69.0
72.5 76.3
and townhouses surged 34.1% annually 60 10
and 6.3% quarterly to 94.1 points. 5.1% 5.1%
40 5
Apartments improved just 8.4% YoY, 1.7%
3.8% 3.6%
20 0
1.4% QoQ reaching 69.5 points. -1.0%
-2.6% -2.5% -2.6%
0 -3.3% -2.7% -4.7% -5
The highest annual villa price gains -5.4%
were registered in Arabian Ranches -10
MAR
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MAR
DEC
DEC
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(40.3%), Jumeirah Islands (40.3%), The
JUN
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Lakes (37.1%), Jumeirah Village
Triangle (35.5%), and Palm Jumeirah 2019 2020 2021 2022
(35%).
It’s worth nothing that villas in Palm VauStrat Price Index (Capital Values) QoQ Growth (%)
Source : ValuStrat
Jumeirah have exceeded their price
peaks of 2014 by 5.3%, achieving 126.6
VPI points. Highest performing
apartment areas in terms of annual
capital gains were Palm Jumeirah
apartments (21.9%), Jumeirah Beach
Residence (16%) and the Burj Khalifa
tower (15.3%).
VALUSTRAT PRICE INDEX -
PRIME RESIDENTIAL CAPITAL VALUES
Tracking prime residential properties VPI - Prime Dubai Residential Capital Values
around Dubai, the VPI registered 84.9 5 Apartment and 4 Villa Locations in Dubai
points after a 19.2% annual leap. On a [Base:Jan 2014=100]
quarterly basis, performance was lower
than the second half of last year. 100
86.9 84.8 84.9
82.6 80.5 81.7
Highly desired villas and apartments 80
78.4 74.1 70.7 70.2 71.2 73.7 77.5
within prime locations saw capital 60 10
values increase 31.5% and 10.5% 5.2% 5.5%
40 3.5% 3.9% 5
respectively. 1.4%
20 0
Demand for high-end properties -2.8% -2.4% -2.5% -2.6% -2.6%
-0.7%
0 -5
located in established prime areas has -5.5% -4.6%
more than doubled since pre-pandemic -10
times, as the share of sold homes
MAR
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DEC
DEC
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SEP
SEP
worth more than AED 7 million, jumped
to 5% in Q1 2022, up from 2% the same 2019 2020 2021 2022
period in 2019. Demand for larger
homes also increased, the average VauStrat Price Index (Capital Values) QoQ Growth (%)
transacted unit size grew from 1,524 sq Source : ValuStrat
ft in 2019 to 2,014 sq ft this year, this
suggests that villas and large
apartments are equally in high demand
03
RESIDENTIAL SUPPLY
• The estimated number of new build units to Residential Supply
enter the market this year stands at 44,708 2019-2023
apartments and 11,172 (’000 UNITS)
villas/townhouses
650
2019
• Areas where most of the upcoming
supply is projected to handover include
693
Mohammed Bin Rashid City (MBR City) with 2020
26.5%, Dubailand (Akoya Oxygen, Arjan,
Majan, etc.) with 14.4%, Jumeirah Village
724
Circle with 7.8% and Downtown Dubai with 2021E
7.6% of the expected supply
• Total estimated completions as of the first 724 45 11
2022E
quarter stood at 5,745 apartments and 493
villas, equivalent to 11% of preliminary
estimates for the whole of this year 780 32 4
2023E
• Notable apartment completions were Lawnz
Residence International City (1,032 units), Existing Urban Villas/Apartments
Sobha Creek Vistas MBR City (756 units), New Apartments*
Collective & Collective 2 Dubai Hills Estate New Villas*
(845 units) and Elite Downtown Residence
Downtown Dubai (345 units). For villas, Akoya * May be subject to significant downward adjustment
Source: Dubai Statistics Centre, REIDIN, MEED Projects,
Oxygen Centaury Dubailand (413 units) and ValuStrat
Villa Amalfi Jumeirah Bay Island (68 units)
• Key off-plan projects launched during the
quarter include Peninsula Five Business Bay Locations with upcoming
(381 units), LIV Marina Dubai Marina (243 Residential Supply
units), Samana Waves JVC (213 units),
Gardenia Livings Arjan (156 units), Gardenia
Townhomes 2 Jebel Ali (92 units) and Alaya
Beach Tilal Al Ghaf (44 units)
27%
43%
14%
8% 8%
MBR Downtown
Dubai Land Other
JVC
Source: REIDIN, ValuStrat
04
RESIDENTIAL SALES TRANSACTIONS
• A strong start of the year as the first quarter than AED 15 billion and 9,586 ready sales rising
ended with record-breaking sales transaction 56% YoY equivalent to a total value of no less
volumes and recorded the highest residential than AED 25 billion
quarterly transactions in history with 7,936
off-plan sales, up 117.7% YoY totalling more
Off-Plan Transactions - Residential
Toltal Volume and Average Price
AED\SQ FT Sales Volume
1,800 18,000
1506 1547
1,600 16,000
1447 1459
1350 1381 1317 1330 1308
1,400 1274 1264 1215 1270 14,000
1238 1230
1155 1182
1,200 12,000
1,000 10,000
800 7936 8,000
7091 7107
6374
600 5329 5224 5698 6,000
4332 4214 4418 4662
400 3649 3348 3646 4,000
2850 2943 2791
200 2,000
0 0
QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1
2018 2019 2020 2021 2022
Average Price [AED/SQ FT] Volume
Source: REIDIN, ValuStrat
• Ticket sizes of off-plan homes rose 39.5% YoY • The citywide average transacted price during
to AED 1.9 million, ready-to-move-in properties this period was at AED 12,261 per sq m
grew 21.7% YoY to AED 2.7 million (AED 1,139 per sq ft)
Ready Transactions - Residential
Toltal Volume and Average Price
AED\SQ FT Sales Volume
1,200 1105 1136 12,000
1090 1089
1027 1019 1063
965 954 967 973 998 927
1,000 919 915 9586 10,000
848 876
8129
800 7514 8,000
6146 6629
600 5237 6,000
400 3937 4,000
3439 3503 3481
2719 2700 2677 2687
2468 2164
200 1516 2,000
0 0
QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1
2018 2019 2020 2021 2022
Average Price [AED/SQ FT] Volume
Source: REIDIN, ValuStrat
05
VALUSTRAT PRICE INDEX -
CITYWIDE RESIDENTIAL RENTAL VALUES
• Overall citywide residential asking VPI - Dubai Residential Rental Values
21 Apartment and 13 Villas Locations
rents climbed 23.7% YoY to 70.6 index
[Base: Q1 2014=100]
points, 29.4% lower than Q1 2014
• On a quarterly basis, rents increased 100
4.9% on average 80 76.5 73.9 73.7 70.8 70.6
63.9 63.1 67.3
60.7 58.9 57.1 60.8
60 56.6 10
• Compared to the same period last 6.5% 6.7%
4.9% 5
40 3.9%
year, asking rents for apartments 0.9%
grew 20.3% to an average of AED 20
-0.2%
0
-1.9%
87,713 per annum 0 -3.4% -3.9%
-5.0%
-3.0% -3.9% -5
-9.7%
-10
• Villas headlined with the highest MAR
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annual asking rental increase since
2014 of 29.1% to an average of AED 2019 2020 2021 2022
251,114 per annum
VauStrat Price Index (Capital Values) QoQ Growth (%)
• Average annual rents for 2-bed villas Source : ValuStrat
stood at AED 113,000, 3-beds at AED
170,000, and 4-bedroom villas at AED
251,000
• Average rents per annum for studio
apartments were AED 40,000, 1-bed
at AED 59,000, 2-beds at AED 85,000,
and 3-bedroom apartments were AED
133,000 Apartment Asking Rents
• Residential occupancy in Dubai was
estimated at 83.7% this quarter
• A total of 87,624 Ejari rental contracts 20.3% 4.1%
for residential homes were registered Last Year Last Quarter
in Dubai in Q1, 29% lower than the
same period last year, 49.3% were of
new contracts, and 50.7% renewed
Villa Asking Rents
contracts
29.1% 6.1%
Last Year Last Quarter
Source: REIDIN, ValuStrat
06
VALUSTRAT PRICE INDEX -
CITYWIDE OFFICE CAPITAL VALUES
Dubai office units witnessed annual VPI - Dubai Office Capital Values
5 Office Locations
price increases of 25.2%, this is after a
[Base: Q1 2015=100]
sustained acceleration in quarterly
capital gains, as Q1 was 6.9% higher 100
than Q4 last year. The ValuStrat Price 80 74.0 69.3 69.7 74.5
67.6 66.3 63.1 62.3 63.1 65.5
60.2 59.4 59.5
Index for Dubai office capital values 60 10
6.9%
registered 74.5 points in Q1 2022, still 40 6.0%
3.8%
6.4%
5
25.5% lower than the same period in 20
0.1%
0
-1.3% -1.3%
2015. Highest performers were 0 -4.7%
-2.5% -1.9%
-3.4% -5
-6.4% -4.8%
Jumeirah Lake Towers (24.3%), -10
Downtown Dubai (26.7%) and Barsha
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Heights (21.3%). Fitted office space
out-performed shell and core options, 2019 2020 2021 2022
as Grade A and Grade B offices saw
VauStrat Price Index (Capital Values) QoQ Growth (%)
prices jump 26.9% and 19.2%
Source : ValuStrat
respectively.
OFFICE SUPPLY
• Dubai International Financial Centre Office Supply
(DIFC) announced that 64% of newly 2019-2023
(Million sq m GLA)
leased office space was let to new
occupiers during 2021 - equivalent to
41,806 sq m (450,000 sq ft)
9.91
2019
• Merex Investment Group, owned by
Brookfield Asset Management and 9.40
2020
Dubai Holdings, announced a 7-year
leasing deal with Talabat for a 14,000 9.40 0.05
sq m (150,000 sq ft) GLA workspace to 2021
serve as its regional headquarters in
City Walk 9.45 0.07
2022E
• The available data for upcoming 9.52
supply this year stands at 2023E
approximately 70,000 sq m (753,473
sq ft) coming from projects in Dubai
Science Park, Dubai Logistics City and Existing Stock Expected Supply
Al Barsha First Source : MEED Projects, ValuStrat
07
OFFICE SALES TRANSACTIONS
• Office sales transaction volumes during Q1 2022 Office Sales Volume
were 1.7% lower when compared to the previous
quarter but jumped 34.9% compared to last year
• The median transacted price stood at AED 8,934
per sq m (AED 830 per sq ft), rising 15.8% 34.9% -1.7%
quarterly and growing 27.4% from the same Last Year Last Quarter
period last year
• In terms of volume, Business Bay was the most Office Transacted Prices
popular choice for office sales with a share of
approximately 42%, followed by Jumeirah Lake
Towers (JLT) with 26% of overall transactions
this quarter. As per the total value, more than
37% was in Business Bay while 20% came from 27.4% 15.8%
JLT Last Year Last Quarter
• The average size of offices sold in Business Bay
was 109 sq m (1,174 sq ft) and 119 sq m (1,282
Source: REIDIN, ValuStrat
sq ft) in Jumeirah Lake Towers
• 67,679 sq m (728,492 sq ft) of total Gross
Leasable Area was sold during the quarter,
amounting to an estimated investment value of
more than AED 722 million
Sales Transactions -
Office Units Total Volume and Median Price
AED\SQ FT Sales Volume
1,200 1,200
1,100 1,100
1,000 1,000
900 885 878 900
830
800 769 791 753 800
748 717
700 719 716
700 685 650 651.5 700
646
564 593
600 600
515 538 529
500 500
400 374 392 373 400
279 298 287
300 268 269 278 300
236 242 225
200 200
129
100 74 100
0 0
QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1
2018 2019 2020 2021 2022
Average Price [AED/SQ FT] Volume
08OFFICE ASKING RENTS
• Median office asking rents saw continued Office Median Asking Rents
increases both annually and quarterly jumping
16% and 5.5%, respectively
• Asking office rents for this quarter rose 12.3%
when compared to the same period two years 16.0% 5.5%
ago Last Year Last Quarter
• The citywide median asking rent for a typical
office size stood at AED 969 per sq m (AED 90
per sq ft)
Source: REIDIN, ValuStrat
• Median asking rents commanded by Dubai
International Financial Centre (DIFC) were
at AED 2,258 per sq m (AED 210 per sq ft) for
typically sized units between 93 – 186 sq m
(1,000 – 2,000 sq ft)
• In Business Bay, median asking rents stood at
AED 1,058 per sq m (AED 98 per sq ft) for typical
office areas of less than 93 sq m (1,000 sq ft)
• A total of 16,339 Ejari rental contracts for offices
were registered in Dubai in Q1, 12% lower than
the same period last year, 57.8% were of new
contracts, and 42.2% renewed contracts
• Office occupancy in Dubai was estimated at 80%
Office Annual Market Rents Trend
(AED per square foot)
120
100 94.0 94.9
88.1 90.8 89.9 90.0
87.8 86.0 84.6 85.3
80.2 80.3 80.0
80 76.9 77.5 77.6 75.0
60
40
20
0
QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1 QTR2 QTR3 QTR4 QTR1
2018 2019 2020 2021 2022
Source: REIDIN, ValuStrat
09RETAIL SUPPLY
• Dubai Hills Mall was opened with Malls and Shopping Centres
approximately 185,806 sq m (‘000 sq m GLA)
(2 million sq ft) gross leasable area
(GLA) featuring 650 outlets, 18-screen 35
Convenience
cineplex theatres and 7,000 parking ( 90k sq m)
(2.1 million sq ft) GLA
Retail Completed Retail Under Construction
Source: REIDIN, ValuStrat
RETAIL PERFORMANCE
• As per Emaar Malls preliminary Number of Malls and Shopping Centres
full-year 2021 results report, its mall
portfolio achieved AED 4.9 billion
in sales, up 42% YoY and recorded an 17
Convenience
overall occupancy of 87% ( 90k sq m)
country during 2021, as per Dubai
Chamber
Retail Completed Retail Under Construction
Source: REIDIN, ValuStrat
10HOTEL SUPPLY
• As of YTD March, the city had a total of Hotel Room Supply
114,536 hotel keys and 25,656 hotel 2019 -2023
(’000 KEYS)
apartments, as per Department of Tourism
and Commerce Marketing (DTCM)
126
2019
• During the first three months of this year,
an estimated 996 rooms from two hotel 127
projects finished construction. This is 2020
equivalent to 14.2% of total expected
completions this year at 7,024 keys 140
2021
• During Q1, 1,630 keys entered the hotel 140 7.0
market from the opening of nine hotels to 2022E
include Anantara World Islands (70 suites),
Taj Exotica Resort Palm Jumeriah (325 147 2.0
2023E
keys), Paramount Midtown Business Bay
(281 rooms), Legoland Hotel Dubai Parks
and Resorts (250 suites), Copthorne
Hotel and Serviced Apt Rooms New Supply
Lakeview Hotel DIP (165 keys) and Studio M
Source: MEED Projects, ValuStrat
Hotel Al Barsha (155 rooms)
HOTEL PERFORMANCE
• Total international guests stood at 7.28 SOURCE OF DUBAI VISITORS BY REGION
million during full year 2021. The citywide YTD March 2022
average occupancy reached 67%, up 24%
YoY when compared to a comparable 2020 3% 1%
14%
and grew 40% YoY set against COVID-19
adjusted performance
23%
• As of YTD March 2022, total international
visitors reached 3.97 million, soaring 213% 13%
YoY. Hotel occupancy averaged 82% during
the same period, up 18% YoY. ADR and
RevPAR stood at AED 649 and AED 534,
growing 64.7% YoY and 112.7% YoY 6%
respectively
• Dubai’s top three source markets were 4%
tourists from Western Europe (27%), GCC
(16%), and Russia, CIS & Eastern Europe 12% 24%
regions (15%)
• EXPO 2020 Dubai welcomed more than 22
South Asia Americas
million visitors and achieved over 200
Russia, CIS & Eastern Europe GCC
million virtual audience during its
Western Europe North Asia & South East Asia
six-month duration ending 31st March '22 MENA Australasia
• Museum of the Future with its 30,000 sq m Africa
(322,917 sq ft) space dedicated to distinct Source: DTCM
experiences was inaugurated
11VALUSTRAT PRICE INDEX -
INDUSTRIAL LOGISTICS CAPITAL VALUES
• The first and only valuation-based price VPI - Dubai Industrial Capital Values
index covering industrial capital values has 8 Industrial Locations
launched. The ValuStrat Price Index for [Base:Q1 2021=100]
industrial logistics which covers 8 areas in
Dubai, grew 5.1% annually and 1.5%
120
quarterly to 105.1 points. The VPI is based on 100.0 101.1 102.4 103.5 105.1
re-valuing existing properties on quarterly 100
basis taking into account various quality 80
specifications for each area 60 10
• The highest annual performing locations 40 5
were JAFZA South (5.3%), Al Qouz (4.7%) and 20
1.4% 1.0% 1.1% 1.5%
0
Ras Al Khor (4.1%)
0 -5
• The weighted average price for an industrial
-10
logistics warehouse as of Q1 2022 was AED
MAR
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2,228 per sq m (AED 207 per sq ft). Dubai
Logistics City registered the highest price of
2021 2022
AED 3,132 per sq m (AED 291 per sq ft).
JAFZA South saw the lowest price of AED
1,862 per sq m (AED 173 per sq ft) VauStrat Price Index (Capital Values) QoQ Growth (%)
Source : ValuStrat
• Steady increases in rental performance
witnessed across majority of key industrial
areas, with central logistical hubs such as
Jebel Ali Free Zone leading the way
INDUSTRIAL INVESTMENT/SUPPLY
• During Q1, the city saw the completion of a Industrial Rental Rates
commodity warehouse measuring 39,432 (AED/SQ M)
sq m (424,442 sq ft) in Al Tayy, a food
manufacturing facility covering an area of Al 506
5,780 sq m (62,000 sq ft) in Dubai Industrial Qouz 183
City, an integrated logistics centre storeroom
with an area of 10,000 sq m (107,639 sq ft)
Al 377
and a 23,500 sq m (252,952 sq ft) EV battery Qusais 183
warehouse in Jebel Ali Free Zone
• New industrial projects announced include a Dubai
Investment
431
6,503 sq m (70,000 sq ft) battery recycling Park
215
plant expected and an EV battery
manufacturing plant spanning across an area
Jebel Ali 431
of 92,903 sq m (1 million sq ft) both in Dubai Free Zone 205
Industrial City
Jebel Ali
• The estimated net project value of industrial Industrial
366
projects for this year stood at AED 2.7 billion Area
161
coming from a total of 19 developments
Price High Price Low
12IN THE MEDIA
17 March 2022 7th March 2022
Seven Tides supports tenants with Learning to work with AVMs
rent-free periods, as Dubai property market
Declan King, MRICS Managing Director and Group
bounces back
Head of Real Estate at ValuStrat believes AVMs can
According to analysts at leading real estate open up new markets for bulk valuations that at
consultancy ValuStrat, apartment rental rates in present are too time-consuming and expensive to
Dubai, grew by over 14% in 2021 as Dubai emerged carry out with any regularity – AVMs can offer a
from the lingering effects of the pandemic. cost-effective way of assessing value on a more
regular basis.
23rd February 2022 19th February 2022
District 2020 to spur Dubai realty Emaar Properties reports record 2021
growth property sales, but experts say market
has yet to peak
“On a strategic level, given its location and “A fresh real estate market cycle began in early
advanced infrastructure, there’s no doubt that 2021 following a 5-year long price decline and a
District 2020 will be a successful hub for pandemic-driven trough in 2020. Transactional
international business and act as a significant volumes of off-plan homes jumped 60 percent
catalyst for the entire city,” ValuStrat’s Director annually in 2021, with a total sales value climbing
and Head of Real Estate Research Haider Tuaima 109 percent from AED19.7bn in 2020 to AED41.2bn in
said. 2021,” said Haider Tuaima, Director and Head of
Real Estate Research at ValuStrat.
19th January 2022 13th January 2022
Without taxes and lockdowns: why do UAE property prices set to rise by 6% in 2022
Russians buy property in Dubai
According to the Dubai Land Department (DLD), Haider Tuaima, Director and Head of Real Estate
last year there were 84,772 real estate sales for a Research at leading real estate consultancy
total of about $82 billion. The number of ValuStrat told the media, “The UAE property market
transactions increased compared to 2020 by 60%, will perform in a healthy way. We have developers
in monetary terms – by 71%. According to the offering attractive payment plans and mortgage
leading real estate consultancy ValuStrat, real interest rates are low. We will see more international
estate in Dubai has risen in price by 17% over the investors coming in to buy the property next year.”
year.
13VPI
ValuStrat Price Index
Market Intelligence.
Simplified.
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ABOUT VPI
The ValuStrat Price Index or the VPI, is a
valuation-based price index constructed to represent
periodic change in capital values and rental values FOR REGULAR MARKET INTELLIGENCE
experienced by typical residential and commercial
properties. The VPI for Dubai’s residential capital
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values is updated on a monthly basis. The VPI for
Dubai’s residential rental values is updated on a
quarterly basis. The VPI for Dubai’s office capital For subscription, please visit
values is updated on a quarterly basis. The VPI for www.valustrat.com/vpi
Dubai’s industrial logistics capital values is updated
or email at
on a quarterly basis. The VPI applies weighted
averages using data samples representing up to 95% business-enquiries@valustrat.com
of the market across the city and is built by our expert
RICS Registered Valuers.
14ABOUT
ValuStrat is a leading international consulting firm headquartered in Dubai providing Advisory,
Valuations, Research, Transaction Advisory, Industrial Consulting and Due Diligence services
across a diverse range of industry sectors since 1977. Offices in the UAE, UK, Saudi Arabia,
Strategic
Pakistan and Qatar serve over 1,000 corporate clients in the Middle East. Client base includes Partners of
financial institutions, local corporates, multinationals, governments, SMEs, family businesses
and startups.
Some of the key sectors serviced by ValuStrat include real estate, hospitality, retail, education, Financial
Institutions
healthcare, FMCG, manufacturing, financial, entertainment, agriculture, energy and transport.
ValuStrat is a Royal Institution of Chartered Surveyors (RICS) Regulated Firm and the first firm
in all of MENA/Asia/Africa to be accepted into the prestigious RICS Tech Affiliate program now
known as ‘RICS Tech Partner’
DECLAN KING, MRICS HAIDER TUAIMA
Managing Director & Group Head
Director & Head of Real Estate Research
of Real Estate
haider.tuaima@valustrat.com
declan.king@valustrat.com
VISMER MULENGA, MRICS CHERYL MCADAM, MRICS
Director - Commercial Valuation Director - Residential Valuation
vismer.mulenga@valustrat.com cheryl.mcadam@valustrat.com
DARSHAN SHAH, MRICS SEAN SWINBURNE, MRICS
Managing Director & Group Head,
Manager - Commercial Valuation
Industrial Consulting
sean.swinburne@valustrat.com
darshan.shah@valustrat.com
SOHAIL RAJA, MRICS
Manager - Valuation, Abu Dhabi Office
sohail.raja@valustrat.com
DUBAI ABU DHABI LONDON RIYADH
+971 4 326 2233 +971 2 207 6664 +44 796 338 2486 +966 11 293 5127
Dubai@valustrat.com Abudhabi@valustrat.com London@valustrat.com Riyadh@valustrat.com
JEDDAH KARACHI DOHA
+966 12 283 1455 +92 213 517 4201 +974 4 039 9001
Jeddah@valustrat.com Karachi@valustrat.com Doha@valustrat.com
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