Year 2022 is expected to see a continuation of the 2021 trend of increasing prices and rent in Dubai's property sector, but at a steady and slower rate.

Meanwhile, capital value and rents of villas in 'highly desired, prime locations', are expected to increase sharply, according to a new report released by ValuStrat, an international consultancy that provides valuations advisory and research in the property space.

The new report gives an overview of prices and rents in Dubai throughout the four quarters of 2021 and also an outlook for the coming year.

In 2022, Dubai’s residential and official rental sector is expected to improve further with successful vaccination programs and the gradual opening of international borders. However there are concerns of possible fall in prices and rents if movement restrictions are reintroduced due to the spread of the Omicron variant of COVID-19,the report stated

“The outlook for 2022 is cautiously positive due to local and global pandemic dynamics and oversupply fear. Generally, prices and rents are expected to grow at a slower pace, though some highly desired prime locations are expected to see capital values reach their past 2014 peaks,” a press statement from ValuStrat said.

The report showed that 2021 was a year of recovery from pandemic challenges. There was consistent year-on-year increase in residential ready sales ticket size and residential ready sales volume through all the four quarters.

“Prices and rents mostly recovered to pre-pandemic levels with record-breaking sales volumes and values However, as of mid-December ’21 the global situation with spread of the Omicron variant presents further questions as to how 2022 will actually un-fold," the press statement added.