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Mo'asher residential real estate price index showed that the Dubai real estate market recorded 25,972 transactions for the purchase of real estate in the first quarter of 2022. This was the highest quarterly indicator in terms of the number of transactions in the emirate since 2010 and the highest indicator in terms of volume since the first quarter of 2014.
Content:
- What is Mo'asher?
- Changes in the index in annual terms
- Number of transactions
- The most successful areas of Dubai by the number of rent agreements
What is Mo'asher?
Mo'asher Index belongs to Dubai Land Department (DLD) and is the first comprehensive analysis of the local market, containing not only information about its current indicators, but also their changes over time over periods of three months, six months and twelve months.
The analysis report is published every month and tracks the percentage change of the market to the indicators of the base year. 2012 is the base year for statistics, and January is taken as the starting point. The base year is taken as 100% or unit (1) and subsequent years are measured as «1.x points» or «0.x points».
Changes in the index in annual terms
In March 2021 (i.e. at the end of the first quarter), the change in the aggregate monthly real estate sales index was 1.249 points. The price reached $330,966 for all types of residential real estate. At the end of the first quarter of 2022, the index showed 1.251 points and a price of $322,888.
Separately, the monthly index for apartments reached 1.285 points with a price of $299,554, and villas/townhouses recorded 1.297 points with a price of $571,865. In comparison with the same period of the current year, apartments showed an index of 1.26 points with a price of $290,595, and villas/townhouses showed 1.234 points with a price of $570,263.
In relation to the rental of real estate at the end of March 2021, an index of 0.950 points was recorded with a rate of $13,972 per month. The index for the first quarter of 2022 showed 0.947 points with a rate of $13,932.
Specifically, apartments in March 2021 showed 0.953 points with a monthly rate of $12,875, and villas/townhouses reached 0.865 points with a rate of $35,749. In 2022, apartments dropped to 0.967 points with a rate of $12,782, and villas/townhouses showed 0.851 points with a rate of $35,838.
Number of transactions
Dubai real estate market closed 8,399 real estate transactions in March 2022 — the highest monthly figure in the last 7 years. Compared to March last year, the number of transactions increased by 83%. Their total value increased by 109%.
Of the total number of transactions in March of this year, 60.16% were related to finished real estate on the secondary market. Accordingly, 39.84% fell on the off-plan market (approx. properties under construction).
Besides, this March, the market registered 44,783 rent agreements. Of these, 60.28% were new contracts, and the remaining share was extended/renewed. 78% of the contracts were concluded for a classic one-year term. The remaining contracts were drawn up for specific periods of time.
The picture within Q1 2022
In the first quarter of 2022, as previously indicated, the number of real estate transactions reached 25,972 transactions, which was the highest number of transactions since 2010. Of this number, 20,539 transactions were related to the sale of real estate and together they brought in $15.11 billion.
Already out of this number, 8,616 transactions were concluded for the purchase of objects from the off-plan market. Their combined value was $4.38 billion. The secondary market accounted for the remaining 11,923 transactions with a total value of $10.72 billion.
150,530 contracts were concluded in the residential real estate rental market. Of these, 51.89% were new, the remaining ones were extended/renewed. In comparison with the IV quarter of 2021, this volume was 4% higher. 79.95% of the agreements concluded were for a year.
The most successful areas of Dubai by the number of rent agreements
At the end of March 2022, the top districts in terms of the number of concluded or renewed rent agreements were headed by:
- Jebel Ali First — 6 259 agreements;
- Al Warsan First — 6 224 agreements;
- Business Bay — 5 056 agreements;
- Naif — 5 011 agreements;
- Al Karama — 5 007 agreements.
