Dubai, UAE: According to Property Finder, the leading MENAT’s proptech company, the real estate market recorded 9,720 total sales worth AED 24.3 billion, the highest performing month in terms of sales transactions volume and value in 12 years.
Comparing period-over-period growth, August witnessed a monthly growth rate in volume of around 37.1% and 69.6% compared to last year. In terms of value, August registered a month-on-month (MoM) growth of 16.1% and around 63.6% year-on-year (YoY).
In terms of 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 off-plan market transacted 4,392 properties worth AED 8.5 billion, 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.
On the other hand, in terms of volume, the mortgage industry experienced an unprecedented growth of 15.7% MoM, exceeding previous records year on year by 21.2%.
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, acquiring 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 market, Mohamad Kaswani, Managing Director of Mortgage Finder, stated: “Despite global headwinds, the Dubai real estate market continues to reflect its true merits. We took note of current trends redefining the immediate future of the real estate market, and as interest rates continue to rise, we’re seeing a rush of mortgage borrowers opting into our fixed-rate products hoping to stabilise their housing costs. Conversely, first-time homebuyers are actively considering a house purchase to provide more stability to their families due to high rental prices that have skyrocketed throughout the city. Additionally, as demand for residential properties continues to rise, many tenants find themselves pressured to purchase the properties they are residing in to alleviate the stress resulting from landlords demanding higher rental prices. The dual impact of home price appreciation along with interest rate hikes translates into a monthly mortgage payment up to 50% higher than the same period last year, majority of which is caused by the appreciation of home price.”
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 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.”