According to the latest data from Mo’asher, Dubai’s official sales and rental performance index launched by Dubai Land Department, the city reported 6,652 sales transactions worth AED18.4 billion in May 2022, the largest volume of transactions for the month of May in the past decade.
In May 2022, the emirate’s real estate market had a total of 6,652 sales transactions, a 51.60 percent rise in volume, and a 66.14 percent gain in value over the same period last year.
The base year for Mo’asher, which was developed by DLD in collaboration with Property Finder, is 2012, and the monthly index’s base month is January 2012, with the quarterly index’s base quarter being Q1 2012.
Mo’asher’s monthly sales index was 1.296 in May 2022, with an index price of AED 1,261,379. The monthly index for apartments was 1.368, with an index price of AED 1,175,363, while the monthly index for villas and townhouses was 1.338, with an index price of AED 2,150,469.
Mo’asher also reported a 0.962 monthly rental index and an index price of AED 52,013. The monthly index for apartments was 0.966, with an index price of AED 47,910, and the monthly index for villas and townhouses was 0.867, with an index price of AED 132,401.
The data from Mo’asher for May shows that Dubai’s real estate market will continue to prosper well in 2022. Overall, monthly sales transactions continue to exceed those of 2021, and the overall sales price index has been rising steadily since June 2020.
The secondary market for sales transactions continues to dominate the real estate market, accounting for 58.55 percent of all transactions in terms of volume and 66.29 percent of all transactions in terms of value. Both the value and number of transactions show that ready and off-plan homes are in demand, particularly apartments, which accounted for 82.34 percent of total transactions, while villas/townhouses accounted for 17.66 percent.
When comparing the first five months of 2022 to the same time in 2021, year-over-year data shows an extraordinary performance on total sales transactions in terms of volume, with 34,126 transactions compared to 20,713 transactions last year. This represents a tremendous year-over-year increase of 64.76 percent.
In May 2022, however, the total number of registered rental contracts reached 35,327, with 59.6% of new leases and 40.4 percent of renewal leases. Annual contracts accounted for 80.9 percent of total contracts, while non-annual contracts accounted for 19.1 percent. Furthermore, registered leases for residential purposes accounted for 73.8 percent of total contracts, while commercial leases accounted for 25.3 percent.
The overall number of rental leases climbed by 2.1 percent in May 2021, owing to an increase in renewal contracts of 4.4 percent compared to the first five months of 2021, as well as an increase of 11.5 percent in yearly leases.
Commercial rental leases increased by 8.47 percent in the first five months of 2021, compared to the same period in the previous year.
According to Ejari Registrations, the top areas for the most rental contracts in May 2022 were Jabal Ali First (1,398 contracts), Al Warsan First (1,285), Business Bay (1,029), Al Barsha South Fourth (958), Nadd Hessa (957), Marsa Dubai (946), Muhaisanah Fourth (934), Al Nahda Second (893), Al Thanyah Fifth (798), and Al Karama Fifth (798). (776).