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Due To Investors’ Confidence In The Emirate’s Promising Future, The Real Estate Market Attracted Nearly Dh160 Billion In Investment In The First Eight Months Of 2022.
Despite global headwinds, the Dubai real estate market maintained its upward trend. Attracted a combined total of Dh24.3 billion investment via 9,720 sales deals in August. According to most recent data, this month had the highest volume and value of sales transactions in previous 12 years.
In the first eight months of 2022, the property market in the emirate attracted investments totaling nearly Dh160 billion. As buyers rushed to purchase apartments, residential plots, and villas in order to live comfortably in the UAE. Because they had faith in Dubai’s future growth. If the upward trend keeps up its current pace, analysts and real estate experts predicted that sales transactions might surpass forecasts by year’s end.
Despite some government-imposed cooling measures, sales of Dubai real estate exceeded Dh20 billion for a third consecutive month. Through 8,897 and 7,092 transactions, it generated Dh22.75 billion in sales in June & Dh21 billion in July.
Property Finder, the top proptech company in the Middle East, reports that compared to last year, the volume increased by between 37.1 and 69.6% monthly in August. Value-wise, August increased by 16.1% from month to month and by about 63.6 percent from year to year.
The Market Displays Genuine Merits
The Dubai property market, despite global headwinds, continues to reflect its true merits, according to managing director of Mortgage Finder. The real estate market’s near future is being redefined by current trends, and as interest rates rise. A wave of mortgage borrowers is choosing our fixed-rate products in an effort to stabilize their housing costs. In contrast, due to the high rental prices that have surged across the city. First-time buyers are actively considering a home purchase to give their families more stability, according to Kaswani.
Additionally, due to the stress caused by landlords who command higher rental rates. As the need for residential properties increases, many tenants are now under pressure to purchase the homes they are renting. A monthly mortgage payment that is up to 50% higher than it was for the same period last year. Due to the dual effects of home price growth and interest rate increases, the majority of which is brought on by home price growth, the economist said.
Right Direction
According to Ata Shobeiry, CEO of Zoom Property, the Dubai real estate market is on the right track and is anticipated to end the year strongly. With sales exceeding Dh24.3 billion in August 2022, Dubai’s property market set a new record. This demonstrates that the market is headed in the right direction, and the year will end strongly,” he said. The market’s off-plan properties, villas, and apartments are all growing in terms of sales volume and value. Despite significant obstacles brought on by the global recession, the market is still outperforming other advanced metropolises, he said.
Ready-Made Home Sales Increase
Total sales for ready properties increased 67.5% compared to August 2021 and increased 27.4% over July 2022 in terms of the volume of transactions. According to Property Finder, the value of transactions increased 57.4% over the previous year and 6.7% over the previous month.
The maximum monthly transaction in 12 years occurred on the off-plan market, where 4,392 properties were traded for Dh8.5 billion. When taking into account transaction volume, the off-plan market showed a notable increase of 51.1% month over month and 72.1% year over year. Market value increased by 38.5 percent every month and 76.5 % on an annual basis.
However, the volume of the mortgage industry saw an unprecedented increase of 15.7% on a month-over-month basis, breaking previous records year over year by 21.2%. “We have high hopes for how the housing market will perform. In times of economic uncertainty around the world, Dubai has consistently outperformed other cities, according to Williams International founding partner Marc Bellamy.
We have seen an increase in HNWIs and foreign investors in the emirate’s high-end developments. Which is evidence that the city offers a wealth of secure and unrivaled opportunities. As a hub for international trade, tourism, and innovation, he said.
The Rental Market Is Uneven
The rental market increased by 10.6% month over month in August. However, rental contracts fell to 9.3% year over year because of a decline in the renewal rate of 18.9%. Additionally, annual contracts experienced a 12.4% growth rate month over month. While non-annual contracts experienced a 52.2 percent decline year over year. Residential contract terms are growing more rapidly than predicted, acquiring 70.9% in August 7.5% on a monthly basis in contrast to contracts for business purposes. Which saw an increase of 21.3% on a monthly basis with a slight drop of 0.6% on an annual basis.
