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Dubai’s real estate market records in June highest volume of sales in nine years

The month of June witnessed a 34 per cent increase in terms of volume and a 24.8 per cent increase in terms of value compared to May 2022

Dubai’s real estate market recorded a total of 8,897 sales transactions worth Dh22.75 billion, the highest volume of sales transactions for the month of June in the past nine years, according to Mo’asher, Dubai’s official sales price and rental performance index.

The month of June witnessed a 34 per cent increase in terms of volume and a 24.8 per cent increase in terms of value compared to May 2022. About 60.05 per cent of all sales transactions recorded were for secondary properties and 39.95 per cent were for off-plan properties.

The off-plan market transacted 3,554 properties worth a total of Dh7.057 billion and the secondary market transacted 5,343 properties worth Dh15.692 billion. In comparison to the same period last month, the number of off-plan transactions in June increased by 28.96 per cent, and the secondary/ready property transactions increased by 37.53 per cent.

The second quarter marked the highest quarterly volume of sales transactions for the last decade with a total of 22,504 transactions worth Dh59.154 billion. Comparing the quarter-on-quarter data, Q2 obtained 9.61 per cent more in terms of volume and 6.77 per cent more in terms of value. The second quarter also demonstrated a significant performance and showed an increase of 45.86 per cent for volume and an increase of 61.56 per cent for value when compared to Q2 in 2021.

In second quarter 2022, 59.68 per cent of sales transactions recorded for secondary/ready properties and 40.32 per cent were for off-plan properties. In terms of the volume of transactions, the off-plan market transacted 6,025 properties worth Dh18.565 billion and the secondary market transacted 13,430 properties worth Dh40.589 billion. Comparing this to first quarter of 2022, the number of off-plan transactions in second quarter increased by 5.75 per cent, and the secondary/ready property transactions increased by 12.38 per cent.

The most notable outcome in second quarter of 2022 marks reaching 123,856 rental contracts where 59.48 per cent were new contracts while 40.52 per cent were renewals. Considering the timeframe for the contracts, in second quarter 81.41 per cent were annual while 18.41 per cent were non-annual.

The top areas that observed the highest rental transactions in June 2022 were Jebel Ali First (1,423 contracts), Al Warsan First (1,311), Al Barsha South Fourth (1,250), Marsa Dubai (1,202), and Business Bay (1,148).

According to Property Finder proprietary data, the top searched areas for apartment rentals in June were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Jumeirah Lake Towers. While, the top searched areas for villa/townhouses were Dubai Hills Estate, Jumeirah, Al Barsha, Akoya, and The Springs.

Dh6.8b deals in a week

Meanwhile, a total of 2,285 real estate transactions worth Dh6.8 billion were conducted during the week ending July 29, 2022, according to the Dubai Land Department.

A total of 254 plots were sold for Dh1.35 billion, 1,516 apartments and villas were sold for Dh3.35 billion.

The top three transactions were a land in Hadaeq Sheikh Mohammed Bin Rashid sold for Dh100.53 million, followed by a land that was sold for Dh90 million in Hadaeq Sheikh Mohammed Bin Rashid.

Al Hebiah Fifth recorded the most transactions for this week by 134 sales transactions worth Dh307.67 million, followed by Jabal Ali First with 28 sales transactions worth Dh97.82 million, and Al Yufrah 2 with 21 sales transactions worth Dh28 million in third place.

The top three transfers for apartments and villas were an apartment sold for Dh501 million in Marsa Dubai, an apartment sold for Dh346 million in Burj Khalifa, and thirdly an apartment sold for Dh227 million in Business Bay.

The sum of the amount of mortgaged properties for the week was Dh1.62 billion, with the highest being a land in Business Bay, mortgaged for Dh308 million. About 79 properties were granted between first-degree relatives worth Dh511 million. — Wam