07 October 2022 – Khaleej Times – www.khaleejtimes.com
The Dubai real estate sustained a strong growth momentum as the property transactions value hit nine-year high in September due to rising demand across off-plan and secondary market, latest data shows.
The real estate transactions climbed 13.34 per cent to 8,649 in September while value of deals surged 23.04 per cent to Dh24.42 billion, highest ever since 2013 when market hit the peak. It demonstrates renewed investor confidence on Dubai’s growing property market, which shows no signs of slowing down despite some regulatory measures announced by the government.
Moreover, the off-plan market transacted 4,439 properties worth around Dh9.755 billion in September, a significant increase of 80.23 per cent in terms of volume and 94.13 per cent in terms of value.
Scott Bond, country manager for the 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,” Bond said.
Record nine-month deals
The real estate market recorded Dh125.2 billion sales transactions during the first nine months of 2022, exceeding the total sales value achieved in 2013 (Dh119 billion). Off-plan transactions also reached an all-time high in the past nine months, recording 29,339 total sales transactions compared to 2021’s total 24,077 transactions, according to Property Finder.
The real estate consultancy Core also pointed out that the upward trajectory in sales prices continued across districts, with citywide villa sales prices up by 16 per cent and apartment prices up by eight per cent year-on-year basis. However, it said the pace of price increase in third quarter of 2022 (two per cent quarter-on-quarter) has relatively slowed down compared to first quarter of 2022 (four per cent quarter-on-quarter) and second quarter of 2022 (four per cent quarter-on-quarter basis).
Prathyusha Gurrapu, head of Research and Advisory at Core, said the overall market sentiment remains positive throughout this year.
“The prime market is relatively resilient to market risks, overall rise in acquisition costs is particularly impacting the affordable and mid-market segments with some end-users increasingly being priced out,” she said.
Ata Shobeiry, chief executive of Zoom Property, said the Dubai’s real estate sustained an upward trend this year due to strong demand from the investors who responded positively to the government’s visa and business reforms.
“With 8,649 transactions worth Dh24.42, Dubai real estate has surpassed the 2013-peak level. This presents a bright picture of the property market despite facing global challenges,” Shobeiry said.
“The market continued its golden run throughout the first three quarters due to the influx of HNWIs, golden visa programme, and other investor-friendly policies, and I believe the fourth quarter will follow the same pattern, ending the year on a very strong note,” he said.
Record Q3 performance
In Q3 2022, the real estate market recorded the highest off-plan and secondary or ready market sales transactions in 12 years in volume and value, attaining 25,456 sales transactions worth Dh69.725 billion. The July-September 2022 quarter recorded a significant increase of 61.69 per cent in terms of volume and 65.64 per cent in terms of value compared to the same quarter last year.
On the other hand, comparing the secondary or ready market the third quarter of 2022 recorded a 52.44 year-on-year increase in terms of volume and 56.94 per cent in terms of value. Additionally, off-plan market transactions in Q3 witnessed a steady growth over the same quarter in 2021 in terms of volume (74.03 per cent) and value (84.58 per cent).
• September recorded the highest number of transactions with 8,649 worth Dh24.42 billion
• Secondary or ready properties recorded a 30.46 per cent increase in terms of volume YoY
• Off-plan market recorded a significant increase of 80.23 per cent in terms of volume and 94.13 per cent in terms of value YoY
• Q3 recorded the highest off-plan and secondary or ready market sales transactions in 12 years in volume and value, attaining 25,456 sales transactions worth Dh69.725 billion
• Q3 2022 recorded a significant increase in sales transactions by 61.7 per cent in terms of volume and 65.6 per cent in terms of value