Dubai property market tops $6.6bn in August

Real estate sales transactions are said to be the highest for 12 years, nearly 70% higher month-on-month over 2021

Dubai’s real estate market recorded 9,720 total sales worth $6.62bn in August – this is said to be the highest-performing month in terms of sales transactions volume and value in the last 12 years.

Comparing period-over-period growth, August witnessed a monthly growth rate in volume of around 37.1% and 69.6% year-on-year over 2021. In terms of value, August registered a month-on-month (MoM) growth of 16.1% and around 63.6% year-on-year (YoY), said a report by Property Finder.

With regards to the growing volume of transactions, total sales for ready properties jumped 27.4% over July 2022 at 67.5% compared to August 2021. Additionally, the value of transactions witnessed around a 6.7% MoM increase at 57.4% year-on-year, the report said.

The off-plan market transacted 4,392 properties worth $2.31bn, the highest monthly transaction in 12 years. Considering the transactional volume, the off-plan market presented a significant increase of 51.1% MoM at 72.1% YoY. In terms of value, the market surged by 38.5% MoM at 76.5% YoY.

The August rental market recorded an increase of 10.6% MoM, whereby rental contracts dipped to 9.3% YoY due to the decrease of the renewal rate by 18.9% YoY.

Furthermore, annual contracts witnessed around a 12.4% growth rate MoM at 4.4% YoY, while non-annual contracts dropped by 52.2% YoY. Residential contracts are growing larger than expected, achieving 70.9% in August – 7.5% MoM – unlike contracts for commercial purposes, which witnessed an increase of 21.3% MoM with a slight decrease of 0.6% YoY.

Commenting on the growth statistics, 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 is 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.”