Dubai real estate market records 9,720 sales worth 24.3 billion dirhams in August
The Dubai real estate market recorded about 9,720 sales worth 24.3 billion dirhams last August, to be the highest-performing month in terms of the number and value of transactions in 12 years.
Data issued by Property Finder, the source of the report, showed that when comparing the growth with the same period last year, it turns out that August witnessed a monthly growth rate of about 37.1% and 69.6% on an annual basis compared to last year.
In terms of value, the same month recorded a monthly growth of 16.1% and 63.6% on an annual basis.
In terms of the increasing volume of transactions, it appears that the total sales of ready-made properties has achieved a jump of 27.4% compared to last July 2022, and 67.5% compared to August 2021. The value of transactions witnessed an increase of 6.7% compared to the previous month, and 57.4% over annual basis.
The number of deals in the market for off-plan sales amounted to 4,392 properties worth 8.5 billion dirhams, representing the highest monthly performance in 12 years.
In terms of the volume of transactions, we find that the market on the map witnessed a remarkable increase of 51.1%, compared to the previous month, and by 72.1% on an annual basis.
The value of market transactions increased by 38.5% compared to the previous month, and by 76.5% on an annual basis.
On the other hand, mortgage activities witnessed an unprecedented growth in terms of volume by 15.7% compared to the previous month, and also exceeded the previous records on an annual basis by 21.2%.
The rental market for August recorded an increase of 10.6% compared to the previous month as lease contracts decreased to 9.3% on an annual basis due to the decrease in the contract renewal rate by 18.9% on an annual basis.
Annual contracts witnessed a growth rate of 12.4% compared to the previous month, and 4.4% on an annual basis, while the non-annual contracts decreased by 52.2% on an annual basis.
Residential contracts achieved higher growth than expected, with an increase of 70.9% in August, and 7.5% on a monthly basis, in contrast to the commercial contracts, which in turn witnessed an increase of 21.3% on a monthly basis, with a slight decrease of 0.6% on an annual basis. .
For his part, Mohamed Kiswani, CEO of Mortgage Finder, said: "Despite the unfavorable global conditions, the Dubai real estate market still reflects its real advantages, as we have noticed that the current trends are once again determining the parameters of the near future for the real estate market. With the continued rise in prices Interest, we are seeing an appetite from mortgage borrowers who choose our fixed interest products to control housing costs.
First-time homebuyers are considering purchasing to ensure more stability for their families due to rising rental prices across the city.
As the demand for residential properties continues to rise, many tenants find themselves compelled to purchase properties with the aim of residency to relieve pressure from landlords' demands for higher rental values.
The dual effect of higher home prices coupled with higher interest rates is causing monthly mortgage payments to rise by up to 50% compared to the same period last year, mostly due to higher house prices.”
Mark Bellamy, co-founder of Williams International, said: “We are optimistic about the performance of the real estate market. Dubai has managed to outperform other major cities in the face of global economic challenges. We have seen an influx of wealthy people and foreign buyers who are investing in high-end projects. In Dubai, this is an indication of the safe opportunities that the city possesses, and its prestigious position as a global center for business, tourism and innovation.”
Follow our latest local and sports news and the latest political and economic developments via Google news