The real estate market in Dubai had 9,720 total sales for AED24.3 billion in August, the greatest performing month in terms of sales transaction volume and value in 12 years, according to Property Finder, the top MENAT’s proptech company.
When comparing growth from one period to the next, the month of August had a monthly growth rate in the volume of about 37.1 percent and 69.6 percent when compared to the previous year. Value-wise, August saw a growth of 16.1% month-over-month (MoM) and about 63.6 percent year-over-year (YoY).
Total sales for ready properties increased by 67.5 percent compared to August 2021 and by 27.4 percent over July 2022 in terms of the growing amount of transactions. In addition, the value of transactions increased by about 6.7 percent MoM and 57.4 percent over the previous year.
The greatest monthly transaction in 12 years occurred in the off-plan sector, where 4,392 properties were traded for AED8.5 billion. The off-plan market showed a considerable increase of 51.1 percent MoM at 72.1 percent YoY when taking transaction volume into account. The demand increased by 38.5 percent MoM and 76.5 percent YoY in value.
The mortgage market, on the other hand, saw a volume increase of an extraordinary 15.7 percent MoM, breaking prior records year over year by 21.2 percent.
The August rental market saw a rise of 10.6% MoM, although rental contracts fell to 9.3% YoY due to a decline in the renewal rate of 18.9% YoY.
Furthermore, yearly contracts grew by about 12.4 percent MoM and 4.4 percent YoY, compared to a 52.2 percent YoY decline in non-annual contracts. Contrary to contracts for commercial purposes, which saw a gain of 21.3 percent MoM with a modest decline of 0.6 percent YoY, residential contracts are expanding faster than anticipated, acquiring 70.9 percent in August and 7.5 percent MoM.