The real estate sector in the Emirate of Dubai continued to maintain a sustainable growth in the number and value of sales during the month of August, after it witnessed the registration of 9,720 real estate sales, worth AED24.34 billion.
This came in Mo’asher, Dubai’s official Sales Price and Rental Performance Index launched by Dubai Land Department (DLD) in cooperation with Property Finder, Dubai’s real estate market records.
The data marks the highest performance in the last decade and demonstrates 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 10 years.
In August 2022, Mo’asher recorded a 1.348 monthly index for sales and an index price of AED 1,311,362. The apartments monthly index recorded 1.428 and an index price of AED 1,229,308.
Furthermore, Mo’asher recorded a 0.983 monthly index for rental and an index price of AED 53,902. The apartments monthly index recorded 0.988 and an index price of AED 49,195, whereas, the villas/townhouses' monthly index recorded 0.891 and an index price of AED 137,034.
Mo’asher data for August showcase a positive sentiment on the real estate sector with a record growth in the total sales transactions. During the month of August 2022, sales transactions overtook last year’s transaction with a significant increase of 69.57 percent compared to August 2021, which recorded the highest performance for a month ever recorded in the last 10 years.
The secondary market continues to capture the real estate market with the largest transactions by 54.81 percent in terms of volume and 64.91 percent in terms of value. Comparing the overall YoY performance with the same period last year, the secondary market witnessed the second highest transaction volume ever reached in a month through the last decade, which increased by 67.55 percent in terms of volume compared to August 2021, and around 57.35 percent in terms of value.
The off-plan sales transactions attained the highest transactions volume in August 2022 and recorded a significant increase by 72.10 percent in terms of volume, and 76.50 percent in terms of value, compared to August 2021.
On the other hand, the total rental contracts in August 2022 reached 47,212 registered leases of which 60.53 percent were new contracts while 39.47 percent were renewed. Annual contracts acquired 87.27 percent of the total contracts, while 12.73 percent were non-annual. Additionally, the registered leases for residential purposes acquired 70.92 percent of the total contracts, while 28.16 percent were registered for commercial purposes.
August’s rental contracts remained strong and witnessed a 10.57 percent increase, supported by the new contracts which increased by 19.43 percent compared to July 2022. The annual contracts continue to dominate the rental market as they grew by 12.29 percent compared to July 2022 and 4.4 percent Year-on-Year, while the rental leases for commercial purposes witnessed an increase of 21.34 percent compared to July 2022. Moreover, the rental leases for residential purposes increased by 7.45 percent compared to July 2022.
The top areas according to Ejari Registrations for the most 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 (968).
According to Property Finder’s proprietary data, the top areas searched for sales in August were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, Jumeirah Village Circle, and Jumeirah Lake Towers. The top overall searched areas for villa/townhouse sales in August were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), Mohamed bin Rashid City and Dubai Land.
News Source: Emirates News Agency