Dubai’s real estate sales hit a 9-year record high

As the world is following political news and worrying about economic stability, Dubai is setting new records in real estate sales that soared to breathtaking heights in the summer season.

Content:

• Dubai real estate market in numbers
  • Buyers are choosing new projects
• Advantages of purchasing a buy-to-rent property in Dubai
  • Who buys apartments and villas in Dubai
• Time to buy

Dubai real estate market in numbers

In June, 8,897 residential property purchase & sale transactions worth a total of AED 22.75 billion were registered in this emirate. According to the official Dubai selling prices and rent indices, this is the greatest sales volume over the past nine years. In monetary terms, this is a 24.8% increase compared to May 2022.

Buyers are choosing new projects

AED 7.05 billion worth of existing properties was sold in June 2022, while buyers of homes in new residential developments paid AED 16.69 billion. Sales of off-plan properties increased by 28.96%, showing that buyers have become more interested in this type of real estate than last month.

Advantages of purchasing a buy-to-rent property in Dubai

The country’s largest emirate is consistently in demand among foreigners who come here not only on vacation but also for permanent residence. Expats account for the majority of the megalopolis’ population. They need accommodation, so rental homes are always sought-after. The numbers are as follows:

• Almost 124,000 lease contracts were signed in the second quarter of 2022 alone, 59.48% of them new. 40.52% of tenants extended contracts with their landlords.
• Districts such as Jebel Ali (1,423 contracts), Al Warsan (1,311 contracts), Al Barsha (1,250 contracts), and Business Bay (1,148) are the most popular among tenants of apartments.

As for villas, foreigners prefer to rent them in Dubai Hills Estate, Jumeirah, and Al Barsha. Statistical data shows that all types of properties are in demand, so owners can be sure of a tax-exempt net profit.

Who buys apartments and villas in Dubai

Indians account for the majority of sales, followed by the British. Italians, Russians, and the French are also in the top five. Geopolitical instability in Europe and the situation in Ukraine are boosting the sales, as investors are looking for a reliable real estate investment fund in the UAE.

Time to buy

To summarize, the growing prices of Dubai homes haven’t reached the top end yet. They are mostly boosted by the increasing sales. Experts forecast that this trend will continue. In the beginning of the year, the value of real estate was expected to grow by 3.5 – 5%, but now some are forecasting a 7.5% growth. There is sufficient supply in the market at present but as the demand surges, the chances are, the most attractive properties will become non-affordable, so it is wiser to invest in real estate without procrastination. Housing will only become more expensive in the future, while remaining liquid.