The Emirate of Dubai’s real estate sector maintained a sustainable growth in the number and value of sales during the month of August, with 9,720 real estate sales worth AED24.34 billion recorded.
This was revealed in Mo’asher, Dubai’s official Sales Price and Rental Performance Index, which was launched in collaboration with Property Finder, Dubai’s real estate market records.
The data shows a significant increase in the overall performance of the sales transaction volume by 69.57 percent and 63.58 percent in terms of value year on year (YoY), which recorded the highest performance for a month ever recorded in the last ten years.
Mo’asher reported a monthly index of 1.348 and an index price of AED 1,311,362 in August 2022. The monthly index for apartments was 1.428, with an index price of AED 1,229,308.
Mo’asher also recorded a monthly index of 0.983 and an index price of AED 53,902. The monthly index for apartments was 0.988, with an index price of AED 49,195, while the monthly index for villas/townhouses was 0.891, with an index price of AED 137,034.
Mo’asher data for August show a positive sentiment in the real estate sector, with total sales transactions reaching a new high. During the month of August 2022, sales transactions exceeded those of the previous year by a big amount of 69.57 percent when compared to August 2021, which had the highest performance for a month ever recorded in the previous ten years.
The secondary market continues to rule the real estate market, accounting for 54.81 percent of total volume and 64.91 percent of the total value. When comparing the overall YoY performance to the same period last year, the secondary market witnessed the second highest transaction volume ever reached in a month over the last decade, which increased by 67.55 percent in terms of volume and around 57.35 percent in terms of value compared to August 2021.
Off-plan sales transactions had the highest transaction volume in August 2022, with a significant increase of 72.10 percent in volume and 76.50 percent in value compared to August 2021.
In August 2022, on the other hand, there were 47,212 registered leases, with 60.53 percent being new contracts and 39.47 percent being renewed. Annual contracts accounted for 87.27 percent of total contracts, while non-annual contracts accounted for 12.73 percent. Furthermore, registered leases for residential purposes accounted for 70.92 percent of total contracts, while registered leases for commercial purposes accounted for 28.16 percent.
August’s rental contracts remained strong, increasing 10.57 percent, aided by new contracts that increased 19.43 percent compared to July 2022. Annual contracts continue to dominate the rental market, increasing by 12.29 percent compared to July 2022 and 4.4 percent year on year, while commercial rental leases increased by 21.34 percent compared to July 2022. Furthermore, rental leases for residential purposes increased by 7.45 percent from July 2022 to July 2023.
According to Ejari Registrations, the top areas for rental transactions in August 2022 were Jabal Ali First (1,579 contracts), Al Warsan First (1,499), Al Barsha South Fourth (1,405), Business Bay (1,399), Eyal Nasser (1,343), Marsa Dubai (1,322), Nadd Hessa (1,237), Mirdif (1,109), Al Barsha First (1,078), and Al Thanyah Fifth (1,078). (968).
The top areas searched for sales in August, according to Property Finder’s proprietary data, were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, Jumeirah Village Circle, and Jumeirah Lake Towers. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), Mohamed bin Rashid City, and Dubai Land were the top overall searched areas for villa/townhouse sales in August.