Q3 Records Highest Sales Transactions For Off-plan and Secondary Properties in 12 years

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Highlights:

  • September recorded the highest number of transactions with 8,649 worth AED 24.42 billion
  • Secondary/Ready properties recorded a 30.46% increase in terms of volume YoY
  • Off-plan market recorded a significant increase of 80.23% in terms of volume and 94.13% in terms of value YoY
  • Q3 recorded the highest Off-plan and Secondary/Ready market sales transactions in 12 years in volume and value, attaining 25,456 sales transactions worth AED 69.725 billion.
  • Q3 2022 recorded a significant increase in sales transactions by 61.7% in terms of volume and 65.6% in terms of value.
  • Rental contracts for September witnessed around a 7.5% increase MoM, while annual contracts recorded around a 9.13% growth rate MoM and 4.88% YoY. 

Dubai, UAE: According to Property Finder, MENAT’s leading proptech company, the real estate market continues to witness steady growth. September recorded the highest transactions of 8,649 worth AED 24.42 billion, breaking through the 2013 market peak with a 13.34% increase in terms of volume and 23.04% in terms of value. 

In terms of volume, Secondary/Ready properties recorded 4,210 transactions, a significant increase of 30.46% YoY. Similarly, transactions for existing properties witnessed an increase of 32.39% YoY in terms of value, reaching AED 14.66 billion compared to AED 11.07 billion in September 2021.

The off-plan market transacted 4,439 properties worth around AED 9,755 billion in September, a significant increase of 80.23% in terms of volume and 94.13% in terms of value YoY. 

In Q3 2022, the real estate market recorded the highest Off-plan and Secondary/Ready market sales transactions in 12 years in volume and value, attaining 25,456 sales transactions worth AED 69.725 billion. Q3 2022 recorded a significant increase of 61.69% in terms of volume and 65.64% in terms of value compared to Q3 2021.

On the other hand, comparing the Secondary/Ready market YoY, Q3 2022 recorded a 52.44% increase in terms of volume and 56.94% in terms of value. Additionally, off-plan market transactions in Q3 2022 witnessed steady growth over Q3 2021 in terms of volume (74.03%) and value (84.58%). 

To capture the overall performance of the real estate market over the past nine months, the sales transactional value recorded around AED 125.2 billion, exceeding the total sales value achieved in 2013 (AED 119 billion). Furthermore, off-plan transactions reached an all-time high in the past nine months, recording 29,339 total sales transactions compared to 2021’s total 24,077 transactions.

Rental contracts in September also witnessed around a 7.55% increase MoM, while annual contracts recorded around a 9.13% growth rate MoM and 4.88% YoY. 

Furthermore, residential contracts continued to grow, recording 71.59% in September, an 8.56% increase MoM. Additionally, contracts for commercials witnessed a monthly increase of 4.63%. 

Rental contracts in Q3 2022 witnessed a 13.59% increase quarter-on-quarter compared to Q3 2021. Annual contracts in the same period witnessed quarterly growth of 21.85% and 1.8% YoY. Moreover, residential contracts in Q3 2022 witnessed a quarterly increase of 11.80%, while commercial contracts recorded a quarterly increase of 17.67%.

Commenting on the market, Scott Bond, country manager – UAE at Property Finder, said: “The surge in demand across off-plan and secondary market comes as no surprise, given the UAE’s proactive strategies, attractive policies, Golden Visa initiative, formidable investment landscape, and the property-pricing tactics. Major trend and catalysts, including an influx of high-net-worth individuals, millennials switching from renting to owning their desired properties, will consolidate the prominence of Dubai’s property market.”