Dubai: New project launches surpass pre-pandemic level in first quarter of 2022

The Dubai real estate market witnessed an uptick in new project launches during the first quarter of 2022 as the emirate emerged as a favourite destination for high net worth individuals, including millionaires and entrepreneurs, following a successful handling of the Covid-19 pandemic, pro-business environment and recent visa reforms, according to a latest report.

The new project announcements during the January-March quarter surpassed pre-pandemic levels, reflecting the positive market sentiments. About 25 new projects, comprising of 6,677 residential units, were announced during the quarter that will cater to the growing demand from the investors.

The number of residential units in new projects announced during the first quarters of 2021 and 2020 was extremely low because of Covid-19 and tighter regulations around new supply as new project announcements dropped to six in 2021 and 16 in 2020 with 1,945 and 5,430 residential units, respectively. In first quarter of 2019, the emirate witnessed announcement of 31 new projects to build 5,896 residential units, according to the Core report.

Prathyusha Gurrapu, head of research and advisory at Core, said several noted developers' projects are witnessing strong absorption, boosting off-plan sales and demonstrating Dubai's renewed investment momentum and consumer confidence.

“Coming off from historically low new project announcements over the last few years due to Covid-19 and dampened market conditions, recent quarters have seen a sharp up-tick in new project launches with first quarter of 2022 launch volumes surpassing pre-pandemic level, underpinned by the overall positive market sentiment," Gurrapu said.

New projects, branded residences

The real estate consultancy report highlighted some of the new prominent project announcements in first quarter and how the emirate continues to lead global rankings with the highest market penetration of branded residences.

"Beach Mansions in Dubai Harbour by Emaar, La Violeta by Dubai Properties in Villanova and Peninsula by Select Group in Business Bay are some of the new projects announced in the first quarter," Core said in a report on Wednesday.

In branded residences, the report identified Six Senses Residences on Palm Jumeirah, St Regis the Residences, Downtown Dubai and the Ritz Carlton Residences Creekside as some of the major projects announced during the quarter.

"With demand outstripping supply in key segments, we expect an upward trajectory in enquiries, transaction volumes, prices and occupancy levels to continue over the remainder of 2022, albeit with an interim marginal slow down during the summer months," the Core report said.

Rising population, business reforms

Ata Shobeiry, chief executive of Zoom Property, said that rising prices and demand have given a push to developers as they have come up with a new line-up of real estate projects in Dubai.

— muzaffarrizvi@khaleejtimes.com