Both apartment and villa categories experiencing significant increases in sales volume and prices, and the Dubai real estate market is continuing to expand. In Dubai, there were reportedly 6,050 apartment sales in August 2022, at a total value of AED 11.7 billion. According to Zoom Property Insights, these numbers reflect an increase of almost 37% in terms of volume and 33% in value month over month. They also reflected an average price per square foot for apartments of AED 1,508 within this time.
With 1,830 sales transactions in the villa category in August, the segment likewise maintained its rising trend. With an average price of AED 845 per foot squared, these acquisitions had a total value of AED 3.8 billion. In comparison to July 2022, there was an almost 30% rise in sales volume and a 3.5% increase in sales value.
According to the Zoom Property Insights, this equates to a total transaction value of AED 160 billion through to the end of August 2022. The month of August 2022 was also a record-breaking month with 9,720 transactions valued at AED 24.3 billion in total.
The emirate has accomplished an unprecedented milestone by exceeding AED billion in real estate transaction volumes for three months straight. Dubai is therefore continuing to defy the present-day difficulties throughout the world as the majority of cities and countries throughout the world are struggling to cope. This has put Dubai’s property market in a solid position to close the year in a strong position.
READY AND OFF-PLAN MARKETS ALSO EXPANDED
According to The Zoom Property Insights, in August 2022 sales transactions of ready property increased by 27.5% in comparison to July 2022. The ready market also saw a 67.5% year-on-year increase in sales transactions. Equally, ready property sales values for the same periods also increase by 6.7% and 57.5% respectively.
Also, Dubai’s off-plan market experienced an increase in sales transactions. These were increases by 51% in comparison to July 2022, and a year-on-year increase of 72%. Sales values for the same periods also increased by 38.5% and 76.5%, respectively.
August 2022 also saw Dubai’s highest off-plan market monthly sales transactions since 2010. There were almost a recorded 4,400 sales transactions totaling AED 8.5 billion during this period.
OVERALL IMPRESSION FROM THE ZOOM PROPERTY INSIGHTS
The current trends were not entirely unexpected either. After all, strong real estate reporting regulations in Dubai and the UAE’s Golden Visa program are heavily in Dubai’s favor. They have not only continued to position Dubai as a highly favorable market for long-term property investments. But they also allow Dubai to be well placed to tackle a potential global recession.
The increase in borrowing costs and its impact on slowing the growth in Dubai’s property market is of course a concern. Yet, every sector of Dubai’s real estate market is continuing to perform extremely well. So, this continues to amplify the attractiveness of investing in the market for investors and everyday residents of Dubai alike.
