Dubai Real Estate sector witnesses record transactions

The Dubai Land Department has announced that real estate transactions in the Emirate amounted to more than $350 million on Tuesday (14 June 2022).

As many as 360 pledges of allegiance worth $280 million were registered and they included 41 pledges of allegiance to lands, worth $53.85 million dirhams, and 319 allegiances to apartments and villas, worth $226.27 million.

The most important land sales worth $5.44 million came in the gardens of Sheikh Mohammed bin Rashid.

Al-Habiya topped the fifth regions in terms of the number of allegiances, with 11 pledges worth $7.08 million, followed by the first Jebel Ali area with 10 pledges worth $9.53 million.

A pledge of $16.33 million in the Palm Jumeirah area came as the most important sale of apartments and villas, followed by another pledge of $15.52 million in the same area. Dubai Marina topped the regions in terms of the number of sales of apartments and villas, with 39 sales of $22.32 million.

Mortgages recorded a value of $48.33 million, including 10 land mortgages worth $6.24 million, and 71 mortgages of villas and apartments worth $42.04 million, the most important of which is in the Naif area with a value of $7.08 million, and a mortgage in the Dubai Marina area with a value of $5.44 million.

Some 44 donations worth $28.76 million were registered, the most important of which was in the Business Bay area with a value of $9.53 million, and another in the Burj Khalifa area worth $7.35 million.

Residential Market Transactions

Meanwhile, CBRE, the US-based consultancy firm, said that the total volume of residential market transactions reached 5,542 in May, up 33% from 2021.

Over this period, off-plan sales increased by 55.4% and secondary market sales by 18%. Total transaction volumes in the year to date to May 2022 reached 30,903, this is the highest total recorded since 2009, over this period.

Average prices increased by 10.9% in the year to May 2022. Over this period, average apartment prices increased by 9.6% and average villa prices by 19.8%.

As of May 2022, average apartment prices in Dubai stood at $300.02 per square foot and average villa prices stood at $355.83 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot are 25.9% and 9.5% below the peak, for apartments and villas respectively.

In the apartments segment of the market, Downtown Dubai recorded the highest average sales rate per square foot at $556.75. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at $873.10.

Average rents in the 12 months to May 2022 have increased by 19.1%, with average apartment and villa rents increasing by 18.3% and 24.3% respectively. As at May 2022, average apartment and villa rents stood at $22,728.76 and $67,974.46 per annum respectively.

In the rental market, the highest average annual apartment and villa rents respectively were found in Palm Jumeirah, where asking rents on average were $58,196.35, and in Al Barari, where asking rents on average were $237,992.71, the CBRE report added.