DUBAI: Dubai’s real estate market recorded 9,720 total sales worth AED24.3 billion ($6.62bn) in August, the highest performing month in terms of sales transactions volume and value in 12 years, said a report.
Comparing period-over-period growth, August witnessed a monthly growth rate in volume of around 37.1 per cent and 69.6pc compared to last year. In terms of value, August registered a month-on-month (MoM) growth of 16.1pc and around 63.6pc year-on-year (YoY), said the report by Property Finder, a leading proptech company.
In terms of the growing volume of transactions, total sales for ready properties jumped 27.4pc over July 2022 at 67.5pc compared to August 2021. Additionally, the value of transactions witnessed around a 6.7pc MoM increase at 57.4pc year-on-year, the report said.
The off-plan market transacted 4,392 properties worth AED8.5 billion, the highest monthly transaction in 12 years. Considering the transactional volume, the off-plan market presented a significant increase of 51.1pc MoM at 72.1pc YoY. In terms of value, the market surged by 38.5pc MoM at 76.5pc YoY.
On the other hand, in terms of volume, the mortgage industry experienced an unprecedented growth of 15.7pc MoM, exceeding previous records year on year by 21.2pc.
The August rental market recorded an increase of 10.6pc MoM, whereby rental contracts dipped to 9.3pc YoY due to the decrease of the renewal rate by 18.9pc YoY.
Furthermore, annual contracts witnessed around a 12.4pc growth rate MoM at 4.4pc YoY, while non-annual contracts dropped by 52.2pc YoY. Residential contracts are growing larger than expected, acquiring 70.9pc in August – 7.5pc MoM – unlike contracts for commercial purposes, which witnessed an increase of 21.3pc MoM with a slight decrease of 0.6pc YoY.
Mohamad Kaswani, managing director of Mortgage Finder, stated: “Despite global headwinds, the Dubai real estate market continues to reflect its true merits. We took note of current trends redefining the immediate future of the real estate market, and as interest rates continue to rise, we’re seeing a rush of mortgage borrowers opting into our fixed-rate products hoping to stabilise their housing costs. Conversely, first-time homebuyers are actively considering a house purchase to provide more stability to their families due to high rental prices that have skyrocketed throughout the city. Additionally, as demand for residential properties continues to rise, many tenants find themselves pressured to purchase the properties they are residing in to alleviate the stress resulting from landlords demanding higher rental prices. The dual impact of home price appreciation along with interest rate hikes translates into a monthly mortgage payment up to 50pc higher than the same period last year, majority of which is caused by the appreciation of home price.”
Marc Bellamy, founding partner of Williams International, said: “We are optimistic about the performance of the real estate market. Time and again, Dubai has leapt over other metropolises amid global economic challenges. We have witnessed an influx of HNWIs and overseas buyers investing in the emirate’s high-end developments, all of which proving to be a testament to a city that holds an abundance of safe and unmatched opportunities as a global hub for business, tourism and innovation.”