Dubai real estate has once again proved its resilience by attracting record Dh21 billion investment through 7,092 sales deals in July, which is considered the best start for the second half of the year in the past 12 years.
The latest data released by Property Finder indicated that the total sales transactions volume jumped 63.56 per cent over July 2021 and climbed 41.16 per cent if compared to July’s volume peak in 2013. Additionally, the value increased significantly by 88.41 per cent compared to 2021 and 58.27 per cent in comparison to 2013.
“We have seen positive momentum in the market over the recent months, showcasing the resilience of Dubai’s sector. The market reflected solid performance for July supporting all expectations and breaking the market volume peak in 2013, resulting in the highest year-on-year market value transactions,” Scott Bond, Property Finder’s UAE country manager, said.
The UAE’s real estate sector attracted more than Dh150 billion investment, including Dh114.5 billion in Dubai, during the first half of 2022. Real estate activities are estimated to generate about 5.5 per cent of the UAE’s overall gross domestic product (GDP) annually.
Prime areas in demand
Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, Jumeirah Village Circle, and Jumeirah Lake Towers were top areas searched for apartment sale in July while Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills (Akoya by Damac), Mohamed bin Rashid City and Dubai Land were preferred overall searched areas for villa and townhouse sales.
Saad Maniar, senior partner at Crowe, said Dubai property sector has proved its resilience once again with the continuous investment in infrastructure in line with the vision of the rulers.
“Such market confidence is the reflection of the future of Dubai. I have no doubt about long-term sustainability of the real estate in Dubai,” Maniar told Khaleej Times on Thursday.
In July, 59 per cent of all sales transactions were for secondary and ready property, while 41 per cent were for off-plan properties. Considering the transactional volume, the secondary and ready market transacted 4,184, presenting a significant volume increase of 61.17 per cent compared to July 2021 and around 91.47 per cent in terms of value.
The off-plan market also transacted 2,908, recording an increase of 67.13 per cent compared to July 2021 and around 81.43 per cent in terms of value.
Steady growth in rents
The rental market showed steady upward trend in July as it recorded 42,698 contracts, reflecting a month-on-month increase of 4.33 per cent. In addition, total renewed contracts recorded an increase of 24.65 per cent while annual contracts dominated the rental market by 86 per cent, with a total of 36,695, according to Property Finder.
Furthermore, the demand for residential leases continues to remain strong, representing 72.97 per cent of total rental leases in July, registering a month-on-month growth of 5.67 per cent.
Ata Shobeiry, chief executive of Zoom Property, said the Dubai property market’s strong performance over the last few months was a clear indication that it would cross 2013 peak numbers, and the inevitable has finally happened.
“The record start to second half of 2022 shows that Dubai real estate is not going to succumb to the global recession. In fact, it’s well-poised to outperform other global housing markets, and we can expect even bigger numbers in the coming months, with key areas performing exceptionally well,” Shobeiry said.