The real estate market in Dubai had 9,720 total sales for AED24.3 billion in August, the greatest performing month in terms of sales transaction volume and value in 12 years, according to Property Finder, the top MENAT’s proptech company.
When comparing growth from one period to the next, the month of August had a monthly growth rate of about 37.1 percent and 69.6 percent compared to the previous year. Value-wise, August had a gain of 16.1% month-over-month (MoM) and about 63.6 percent year-over-year (YoY).
4,392 properties worth AED8.5 billion were traded in the off-plan market, the biggest monthly volume in the previous 12 years. When taking into account transaction volume, the off-plan market showed a notable increase of 51.1%, MoM, at 72.1% YoY. Market value increased by 38.5% MoM and 76.5% YoY, respectively.
The August rental market saw a rise of 10.6% MoM, although rental contracts fell to 9.3% YoY as a result of a decline in the renewal rate of 18.9% YoY. Additionally, yearly contracts grew by about 12.4 percent MoM and 4.4 percent YoY, compared to a 52.2 percent YoY decline in non-annual contracts. Contrary to contracts for commercial purposes, which saw a gain of 21.3 percent MoM with a modest decline of 0.6 percent YoY, residential contracts are expanding faster than anticipated, acquiring 70.9 percent in August and 7.5 percent MoM.
The Dubai real estate market continues to reflect its actual advantages despite global headwinds, according to Mohamad Kaswani, Managing Director of Mortgage Finder. As interest rates continue to increase, we’re seeing a surge of mortgage borrowers choose our fixed-rate programs in an effort to stabilize their housing costs.
This is because we noted current trends that are changing the near future of the real estate market. In contrast, first-time homebuyers are really thinking about buying a property in order to give their family more stability as a result of the city’s skyrocketing rental prices. In addition, as the demand for residential properties rises, many tenants are under pressure to buy the homes they are renting in order to relieve the tension brought on by landlords who demand greater monthly rates. A monthly mortgage payment that is up to 50% greater than it was during the same time period last year as a result of the twin impact of rising interest rates and property price growth.
