Dubai records decade-high real estate sales transactions in May 2022

Dubai has recorded 6,652 sales transactions worth Dhs18.4bn in May 2022, the highest volume of transactions for the month in the past decade.

Dubai recorded a 51.60 per cent increase in transaction volume and 66.14 per cent growth in value in May, in comparison to the same period last year, data from Mo’asher, the emirate’s sales and rental performance index launched by Dubai Land Department (DLD), showed.

The base year for Mo’asher – launched by DLD in cooperation with Property Finder- is 2012, while the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.

In May 2022, Mo’asher recorded a 1.296 monthly index for sales and an index price of Dhs1,261,379. The apartment monthly index recorded 1.368 and an index price of Dhs1,175,363, additionally the villa/townhouse monthly index recorded 1.338 and an index price of Dhs2,150,469.

Furthermore, it recorded a 0.962 monthly index for rental and an index price of Dhs52,013. The apartment monthly index recorded 0.966 and an index price of Dhs 47,910 and the villa/townhouse monthly index recorded 0.867 and an index price of Dhs132,401, official news agency WAM reported.

The secondary market for sales transactions accounted for 58.55 per cent in terms of volume and 66.29 per cent in terms of value, signalling interest in ready and off-plan properties, especially apartments, which accounted for 82.34 per cent of total transactions, whereas villas/townhouses represent around 17.66 per cent.

The emirate posted 34,126 transactions in the first five months of the year compared to 20,713 transactions during the same period in 2021, posting a 64.76 per cent growth rate year-on-year. Meanwhile, the total rental contracts in May 2022 attained 35,327 registered leases of which 59.6 per cent included new contracts whereas 40.4 per cent were renewals.

Annual contracts acquired 80.9 per cent of the total contracts while 19.1 per cent were non-annual. Furthermore, the registered leases for residential purposes acquired around 73.8 per cent of the total contracts, while 25.3 per cent were registered for commercial purposes.

The top areas according to Ejari Registrations for the most rental transactions in May 2022 were Jabal Ali First (1,398 contracts), Al Warsan First (1,285), Business Bay (1,029), Al Barsha South Fourth (958), Nadd Hessa (957), Marsa Dubai (946), Muhaisanah Fourth (934), Al Nahda Second (893), Al Thanyah Fifth (798), and Al Karama (776).

In 2021, Dubai recorded the highest value of real estate sales transactions in 12 years, with Dhs151.07bn worth of properties sold throughout last year.