August recorded the highest monthly Dubai real estate sales in a decade
The United Arab Emirates, a destination of innovation, leads the world in governance, effectiveness, and efficiency in almost every sector. Being an early adopter of vigorous immunization programme against the COVID-19 virus, the country was amongst the very few first ones that opened the doors for international travelers. Resultantly, we observed a huge shift in terms of demand for real estate and a spike in prices of properties and real estate investment – almost amidst the pandemic.
Positive effects of Expo 2020
Several independent reports have confirmed that Expo 2020 left positive effects on the real estate market since the country generally and Dubai specifically has enjoyed unprecedented promotion since the start of the event. The impact was directly translated into the market’s performance – where an upward trend was observed, which is likely to continue throughout 2022.
August recorded the highest monthly real estate sales numbers for Dubai
The Dubai real estate market has exhibited its highest monthly performance in a decade, this August 2022, as recorded by Mo’asher. Mo’asher is Dubai’s official Sales Price and Rental Performance Index launched by Dubai Land Department (DLD) in association with Property Finder.
The data indicates that a total of 9,720 sales transactions were recorded in the Dubai real estate market in August 2022. The total value of these sales transactions was AED24.34 billion, which is almost a 69.75 per cent increase compared to August 2021.
The number of transactions in secondary and off plan real estate market
The secondary real estate market recorded the total transactions for August at more than 54 percent in volume and almost 65 percent in terms of the value of the total transactions, compared to August 2021.
When it comes to the numbers of transactions for off plan properties in Dubai, the figure was significantly higher in August by 72.10 percent in terms of volume and 76.50 percent in terms of value – compared to August 2021.
The most searched areas in August were…
The data does not just quantify the numbers of sales transactions but also revealed the most searched areas for properties for sale in Dubai. The top most searched areas for sale in August were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, Jumeirah Village Circle and Jumeirah Lake Towers.
The top areas searched in August for townhouses and villas for sale in Dubai were Palm Jumeirah, Dubai Hills Estate, Arabian Ranches, DAMAC Hills, Dubailand and Mohammed Bin Rashid City.
The top areas searched for properties for rent in Dubai (extracted by the number of Ejari registrations in August) was Jabal Ali First, Al Warsan First, Al Barsha South Fourth, Business Bay, Eyal Nasser, Marsa Dubai, Nadd Hessa, Mirdif, Al Barsha First, and Al Thanyah Fifth. It is also revealed that nearly 40 percent of the total registered rental contracts in August were rent renewals.
New rental contracts also saw a substantial increase on Year on Year basis, with 47,212 registered contracts – the majority of which were new contracts. According to a report published by CBRE in September 2022, average prices on Year on Year basis increased by 8.8 percent, average apartment prices rose by 7.7 percent and average villa prices increased by 15.8 percent.
High rental returns attract more property investors
Dubai is and will continue to be an attractive destination for potential property investors looking for real estate investment opportunities in Dubai – as this city offers an average rental yield of 7 percent.
According to ANI, the rental returns are higher in Dubai as compared to other developed cities including New York (2.8 per cent), Hong Kong (2.3 per cent), London (2.6 per cent), and Singapore (2.5 per cent).
Dubai is not just a preferred option for buy-to-let properties but the city has also opened avenues for investing in properties for sale for long-term residency, which can lead to opportunities for tax-free income. Though the country has always been an attractive choice for investors and end property buyers but the government has recently announced a number of residence visas that have come into the effect from the beginning of October 2022.
All these updates made to the residency visa make an investment in the real estate sector even more lucrative. For instance, with an AED 2 million investment, real estate buyers can apply for a renewable long-term residence visa of five years.
If you are interested to be a part of this thriving market and want to add properties for sale in Dubai to your portfolio, all you need is to contact the team Copperstones at: +44 203 888 5555 or you can also leave us a query at: enquiries(at)copperstones(dotted)com. Besides offering you a list of handpicked properties in Dubai, we can curate a bespoke investment plan for you to cater to your specific investment needs.
Please submit your enquiry and a member of our team will get in touch with you soon.