Palm Jumeirah and the reasons of the popularity of Dubai real estate in 2022

The real estate market in the UAE, and in particular in Dubai, recorded a record number of transactions in 2022 - more than 122,000 deals worth more than $143 billion. If you plan to buy property in Palm Jumeirah, Business Bay or any other area of the city than now is probably the best time ever as the market is on its peak – the best offers are out and the prices are not skyrocketing. Whether the trend will continue this year and why real estate in the Emirates is so attractive let’s have a look. 

Palm Jumeirah and the reasons of the popularity of Dubai real estate in 2022

Real estate in Dubai

At the beginning of this year, Dubai authorities announced a new record in the real estate market. According to a Dubai Media Office report, the annual volume of real estate transactions amounted to a record AED528 billion ($143.75 billion).

In total, 122,658 real estate transactions were registered in the emirate in 2022, which is 44.7% more than in 2021 in terms of the number of transactions and 76.5% more in terms of transaction amounts.

“Dubai remains one of the most attractive investment destinations in the world due to its stable economy, strong financial fundamentals and ability to constantly find new growth opportunities,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate.

“Moreover, global investors, institutions and businesses continue to have confidence in Dubai's economy due to its growing profile as one of the best metropolitan areas to live and work in, its exceptional infrastructure and supporting regulations,” Sheikh added.

How did it happen?

During the pandemic, wealthy people and families from all over the world, mainly from Europe, decided to visit the emirate for the first time, as it was one of the few places open to tourism. It was an obvious alternative to ski resorts in Courchevel, Gstaad and other popular winter destinations that were closed at the time. As these visitors became increasingly attracted to the prospects of the city, many of them decided to call it their home, while others decided to make it their new holiday destination, which spurred demand for real estate, especially in the high-end market segment.

Openness during the pandemic, combined with Expo 2020, incredibly competitive immigration reforms and golden visa schemes, has put the city on the world map and elevated its status among other real estate markets, according to Gulf Business.

To this should be added the decline in the attractiveness of Hong Kong after China increased its influence on the special administrative region of China.

At the same time, real estate prices were boosted by a large influx of cash into the market, most of which came from Russia. In the third quarter of 2022, Russians have become one of the largest foreign buyers in the emirate’s real estate market.

In addition to Russians, the real estate market is attracting wealthy citizens of the Gulf countries, as well as Israelis against the backdrop of normalized relations between the UAE and Israel. The list also includes people leaving China after the easing of restrictions imposed due to Covid-19, as well as those who are moving their business from London after the UK exits the European Union.

Simon Baker, Managing Director of the Haus & Haus Group, also notes the role of international clients in the success.

“Dubai is the perfect place to raise kids, it has great healthcare, great schools, it's safe here,” he says. “We have a growing number of buyers from Europe - the UK, France, Switzerland and Germany, where there are high taxes and very high inflation,” Baker said.

Palm Jumeirah and the record sales

The Palm Jumeirah is part of the Palm Islands, an archipelago of artificial islands built by Nakheel Properties in 2006. The outlandish island adjoins the coast of Dubai and is adjacent to the business and cultural centers of the city - the Al Sufouh and Dubai Marina areas. From the Palm Jumeirah, dizzying landscapes open up: against the backdrop of azure water, the "sail" of the Burj Al Arab hotel turns white, and modern skyscrapers rise on the shore.

The ultra-luxury area of Palm Jumeirah in Dubai offers apartments for every taste. The territory of more than 550 hectares is built up mainly with residential real estate - premium apartment buildings are located on the "trunk" of the island, and excellent villas are scattered along the "branches". Prices for apartments on Palm Jumeirah start at AED1 million ($300,000), and increase depending on the number of rooms.

The artificial island includes three zones: trunk, crescent and crown.

The trunk is the center of the island. A bridge connects to the mainland. On the trunk there are many multi-storey buildings. The infrastructure is well developed here. You can relax in restaurants, clubs, on the beaches, visit numerous shops, cafes, etc. In order to get to the crescent, you can use the underwater tunnel for vehicles.

The island has many swimming pools, private beaches, terraces for a comfortable stay. We also recommend visiting the water park, diving center and dolphinarium. Many tourists enjoy boat trips surrounded by sharks.

Thus, Palm Jumeirah is an excellent solution for comfortable housing, as well as a profitable investment.

  • One of the biggest purchases last year was that of Indian billionaire Mukesh Ambani, who in October bought 5,534 square meters of land for $163.4 million on the Palm Jumeirah, an artificial island lined with luxury hotels, villas and apartment buildings. On top of that, he also purchased an $80 million mansion for his youngest son. 
  • A few weeks later, an unknown buyer bought an eight-bedroom, 18-bathroom villa on the Palm Jumeirah for $82.4 million.

At the same time, rental prices in Dubai are rising at the fastest pace, and banks continue to lend to individuals, more people decide to buy property, which again contributes to the growth in demand.

Property for sale in Dubai

Emirates.Estate website holds a huge database of the real estate. Whether you want to live alone or with your family, plan to visit the emirate during the business trips or want a permanent stay, the website will help you find a property option suitable for you and your situation. Go over to the website and check out how easy is that.