Despite a steady rise in prices, Dubai’s real estate continued to attract investors and end-users in April, according to the most recent data.
Last month, home sales increased by 55.9% year over year as demand for villas and apartments remained strong. Home sales transactions, on the other hand, fell 17.4% month over month.
“Cash and mortgage sales of ready properties fell 13% month over month, while off-plan Oqood (contract) registrations fell 23.3 percent,” according to the ValuStrat Price Index (VPI).
In other news, according to Property Finder’s proprietary demand data, the emirate saw 6,983 real estate sales transactions worth Dh18.2 billion in April, the highest monthly total since 2009.
Secondary market sales transactions accounted for 60% of the total, with 4,212 transactions worth Dh12.86 billion, while off-plan properties accounted for 40% of the total, with 2,771 properties worth Dh5.33 billion.
When compared to the same month last year, there were 45.48 percent more transactions in April this year, resulting in a 66.62 percent increase in value. According to Property Finder’s data, this translates to a 46.2 percent increase in secondary volume and a 63.86 percent increase in value, as well as a 44 percent increase in off-plan sales transactions and a 73.68 percent increase in value.
“With April 2022 performing at its highest level since 2009, all eyes were on the real estate performance following Expo 2020, and the data is a strong testament to the growing appeal for the Dubai Real Estate Market.” Following various government initiatives, such as the recent addition of new categories to the golden visa rules, we also see a positive sentiment for investment opportunities, making Dubai’s properties one of the most preferred long-term investment assets,” said Scott Bond, UAE country manager at Property Finder.
Dubai real estate prices will continue to rise this year, but at a slower pace, according to Haider Tuaima, director and head of real estate research at ValuStrat.
The residential price index saw a 1% increase in capital values to 79.8 points in April compared to a January 2014 base period, indicating a strong demand for luxury properties. The index, which saw 19 transactions worth more than Dh30 million last month, highlighted the Dh96 million sale of a six-bedroom villa in Dubai Hills.
“Villa capital value growth slows to a sustainable monthly rate, while apartment capital value growth remains flat.” According to the report, “Dubai’s typical villa VPI reached 95.7 points; however, most typical apartments saw little or no monthly difference in price, now at 69.7 points.”
Villas, which account for 13% of the market, saw capital values rise at a slower monthly rate of 1.8 percent in April, bringing them closer to the peak reached in January 2014. In April, average year-over-year villa prices increased 33.8 percent, and the upward trend is expected to continue this year, albeit at a slower pace.
