According to the most recent data, Dubai real estate has maintained a strong growth momentum, with property transaction values reaching a nine-year high in September due to rising demand in the off-plan and secondary markets.
Real estate transactions increased 13.34 percent to 8,649 in September, with the value of transactions increasing 23.04 percent to Dh24.42 billion, the highest level since the market reached a peak in 2013. It demonstrates renewed investor confidence in Dubai’s expanding real estate market, which shows no signs of slowing despite some regulatory measures announced by the government.
According to the most recent Property Finder data, secondary or ready properties saw 4,210 transactions, a significant year-on-year increase of 30.46 percent in terms of volume, while transactions for existing properties saw a 32.39 percent increase in terms of value, reaching Dh14.66 billion compared to Dh11.07 billion in September 2021.
Furthermore, the off-plan market transacted 4,439 properties worth approximately Dh9.755 billion in September, representing an increase of 80.23 percent in volume and 94.13 percent in value.
According to Scott Bond, Property Finder’s UAE country manager, the surge in demand across the off-plan and secondary market is unsurprising, given the UAE’s proactive strategies, attractive policies, golden visa initiative, formidable investment landscape, and property-pricing tactics.
“Major trend and catalysts, including an influx of high-net-worth individuals, millennials switching from renting to owning their desired properties, will consolidate the prominence of Dubai’s property market,” Bond said.
Record nine-month deals
During the first nine months of 2022, the real estate market recorded Dh125.2 billion in sales transactions, exceeding the total sales value achieved in 2013. (Dh119 billion). According to Property Finder, off-plan transactions reached an all-time high in the last nine months, with 29,339 total sales transactions compared to 24,077 total transactions in 2021.
The real estate consultancy Core also noted that the upward trend in sales prices continued across districts, with citywide villa sales prices up 16% year on year and apartment prices up 8% year on year. However, it stated that the pace of price increases in the third quarter of 2022 (2% quarter on quarter) has slowed compared to the first and second quarters of 2022 (4% quarter on quarter) (four percent quarter-on-quarter basis).
According to Prathyusha Gurrapu, Core’s head of Research and Advisory, the overall market sentiment remains positive this year.
“The prime market is relatively resilient to market risks, overall rise in acquisition costs is particularly impacting the affordable and mid-market segments with some end-users increasingly being priced out,” she said.
According to Ata Shobeiry, CEO of Zoom Property, Dubai’s real estate has maintained an upward trend this year due to strong demand from investors who have responded positively to the government’s visa and business reforms.
“With 8,649 transactions worth Dh24.42, Dubai real estate has surpassed the 2013-peak level. This presents a bright picture of the property market despite facing global challenges,” Shobeiry said.
“The market continued its golden run throughout the first three quarters due to the influx of HNWIs, golden visa programme, and other investor-friendly policies, and I believe the fourth quarter will follow the same pattern, ending the year on a very strong note,” he said.
Record Q3 performance
The real estate market recorded the highest off-plan and secondary or ready market sales transactions in volume and value in 12 years in Q3 2022, with 25,456 sales transactions worth Dh69.725 billion. When compared to the same quarter last year, the July-September 2022 quarter increased by 61.69% in terms of volume and 65.64% in terms of value.
In comparison, the third quarter of 2022 saw a 52.44 percent increase in volume and a 56.94 percent increase in value in the secondary or ready market. Furthermore, in terms of volume (74.03%) and value, off-plan market transactions increased steadily in Q3 compared to the same quarter in 2021. (84.58 percent).
Key takeaways
- September saw the most transactions, with 8,649 worth Dh24.42 billion.
- The volume of secondary or ready properties increased by 30.46 percent year on year.
- The off-plan market increased by 80.23 percent in terms of volume and 94.13 percent in terms of value year on year.
- In terms of volume and value, Q3 saw the highest off-plan and secondary or ready market sales transactions in 12 years, with 25,456 sales transactions totaling Dh69.725 billion.
- Sales transactions increased by 61.7 percent in volume and 65.6 percent in value during the third quarter of 2022.
- Sales transactions increased by 61.7 percent in volume and 65.6 percent in value during the third quarter of 2022.