Dubai’s real estate market witnessed 6,651 real estate transactions worth $4.98 billion (AED 18.3 billion) in May 2022, marking the highest figures for the month of May in 13 years in terms of real estate sales volume and value.
The transaction figures reported in May 2022 also marks a 51.5 percent increase year-on-year for sales volume and a 65.4 percent increase for sales value compared to May 2021.
The director of Data and Digital Transformation at Allsopp & Allsopp, Lynnette Sacchetto, said: “The Dubai real estate market continues to consistently show steady growth month-on-month when compared to last year. Also, just like last month, we saw a repeat in trend with May being the second-highest on record for sales volume and value, with May 2009 being the highest.
“To break it down further, 58.5 percent of the sales transactions were in the secondary/ready market with 3,894 sales transactions worth AED 12.1 billion, and 41.5 percent were in the off-plan market with 2,757 sales transactions worth AED 6.18 billion.”
The data revealed is part of a report for the month of May, which includes Dubai Land Department’s (DLD) open data as well as data revealed by Allsopp & Allsopp.
When the data is compared to April 2022, there was a 5.11 percent decrease in overall sales volume and 0.1 percent decrease in sales value month-on-month.
The secondary Dubai property market saw a 7.97 percent decline in sales transactions with the off-plan market seeing a 0.7 percent decline month-on-month.
Sacchetto added: “As the months progress, we still haven’t seen the effect of rising interest rates and inflation in the real estate market. Petrol prices rose by 13 percent in June, but yet the residential sales market still seems to be unscathed. Sales volumes dip marginally, and sales prices still hold strong and even grow in high-demand areas and segments.
“The off-plan market continues to thrive with high demand and new launches continuing to be released. With the summer months coming upon us, it will be interesting to see how travel trends, both outbound and inbound, will affect the Dubai real estate market.”
To enhance the market data with proprietary data, the Allsopp & Allsopp Group, leaders in the Dubai real estate industry, has over 13 years of historical data as well as real-time data.
Lewis Allsopp, CEO of Allsopp & Allsopp says “Our data shows the trends and a true pulse of what is happening in the real estate market today, from the front line. Following on from the trends of the year, May was also a very busy month for us and sales value performance grew in Allsopp & Allsopp by 57 percent year-on-year.
“This could be the result of buyers purchasing properties before we see the increases in interest rates, which will have an effect on mortgages. We must also take into consideration the appeal of Dubai on a global scale. The city has consistently attracted overseas buyers but now more than ever, we see a lot of interest from buyers who are looking for properties in the city has not yet made the move to the city or have been here for only a short period of time.”
The top three areas for May sales were Dubai Marina, Downtown Dubai and The Springs and 52 percent of Allsopp & Allsopp buyers were financed while 34 percent were cash purchases and the rest opted for developer incentives in the off-plan segment.
(Source: ArabianBusiness YouTube channel)
Follow us on
