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Dubai / Gulf Time
According to 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 a total of 6,652 sales transactions worth AED18.4 billion in May, the highest volume of transactions for the month in the past decade.
The sales transaction volume during the month increased by 51.60 percent while the value increased by 66.14 percent, year-on-year. As many as 58.55 percent of the sales transactions volume were for the secondary/ready market and 41.45 percent were for the off-plan market.
Dubai recorded 35,327 rental leases in the month of May, out of which 59.6 percent were new leases while 40.4 percent were renewals. 25 percent of the rentals in Dubai during the month were for commercial leases while 74 percent were residential leases.
In May, Mo’asher recorded a 1.296 monthly index for sales and an index price of AED1,261,379. The apartment monthly index recorded 1.368 and an index price of AED1,175,363, additionally the villa/townhouse monthly index recorded 1.338 and an index price of AED 2,150,469.
Furthermore, Mo’asher recorded a 0.962 monthly index for rental and an index price of AED52,013. The apartment monthly index recorded 0.966 and an index price of AED47,910 and the villa/townhouse monthly index recorded 0.867 and an index price of AED132,401.
Mo’asher’s data for May highlights the continuous positive performance of Dubai’s real estate sector throughout 2022. Overall, sales transactions continue to surpass 2021’s average monthly transactions; the overall sales price index shows a healthy growth since June 2020.
The secondary market for sales transactions continues to dominate Dubai’s real estate market with a steady growth capturing the largest transactions by 58.55 percent in terms of volume and 66.29 percent in terms of value.
Both transaction value and volume indicate the strength in ready and off-plan properties, especially regarding apartments, which accounted for 82.34% of total transactions, whereas villas/townhouses represent around 17.66%.
Comparing the overall performance of the first five months in 2022 to the same period in 2021, year-on-year data presents an exceptional performance on the total sales transactions in terms of volume with a record of 34,126 transactions compared to 20,713 transactions in the same period last year. This presents a significant 64.76% growth rate year on year.
On the other hand, the total rental contracts in May attained 35,327 registered leases of which 59.6 percent included new contracts whereas 40.4 percent were renewed. Annual contracts acquired 80.9 percent of the total contracts while 19.1 percent were non-annual. Furthermore, the registered leases for residential purposes acquired around 73.8 percent of the total contracts, while 25.3 percent were registered for commercial purposes.
When compared to May 2021, the total number of rental leases in Dubai increased by 2.1 percent driven by the renewal contracts which increased by 4.4 percent compared to the first five months in 2021 as well as an increase in annual leases by 11.5 percent.
As for the rental properties by usage, the commercial rental leases witnessed an increase of 8.47 percent compared to the first five months in 2021.
The top areas according to Ejari registrations for the most rental transactions in May were Jabal Ali First (1,398 contracts), Al Warsan First (1,285), Business Bay (1,029), Al Barsha South Fourth (958), Nadd Hessa (957), Marsa Dubai (946), Muhaisanah Fourth (934), Al Nahda Second (893), Al Thanyah Fifth (798), and Al Karama (776).
According to Property Finder’s proprietary data, the top areas searched for in May for sales were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, Jumeirah Village Circle, and Jumeirah Beach Residence. The top overall searched areas for villa/townhouse sales in May included Arabian Ranches 2, Dubai Hills Estate, Arabian Ranches 3, Palm Jumeirah, Damac Hills (Akoya by Damac) and The Springs.
According to Property Finder’s proprietary data, the top searched areas for apartment rentals in May were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle and Jumeirah Lake Towers. The top searched areas for villas/townhouses were Dubai Hills Estate, Jumeirah, Arabian Ranches, Mirdif and Al Barsha.