Dubai real estate market recorded 5,797 sales transactions worth $4.54 billion last month, becoming the best January ever on record, Property Finder said in its monthly report on Thursday.
In January 2022, 53% of all transactions were for secondary/ready properties and 47% were for off-plan properties. The off-plan market transacted 2,706 properties worth a total of $1.45 billion while the ready market transacted 3,091 transactions worth $3.1 billion.
Comparing January 2022 month-on-month with December 2021, the off-plan value fell by more than 6% but the volume increased by 5.58%.
Secondary volume increased by more than 1.74% and value increased by 13.68%. Looking at overall transactions, total transaction value increased by 6.4% and volume increased by 3.5% compared with December.
Comparing overall performance for the same period in January 2021, January 2022 had 74.56% more transactions with 145.31% more in value. Comparing with the corresponding period last year, the secondary volume increased by 30.70% and value by 106.77%. The rebound we have seen in the off-plan market has been significant, as off-plan sales transaction value increased by 307.88% and volume increased by 183.05%.
“There are many questions as to how 2022 will pan out. Based on numerous factors such as the data and trend patterns, it looks like 2022 will continue on an upward trajectory when it comes to sales volumes and price increase in prime, popular areas,” said Lynnette Sacchetto, Director of Research and Data at Property Finder.
Price Hike To Continue
“New supply will be low in prime areas and certain asset classes such as villa/townhouses. Therefore we can continue to expect price increases in these areas as demand continues to be strong. The off-plan segment will most likely not cool down anytime soon due to investor sentiment, attractive pricing, the lure of Dubai and overall good projects launching in the market,” Lynnetto said.
“During the pandemic, many developers took a step back and really assessed the market to understand what type of projects to build which checked all of the boxes for investors and consumers alike, she added.
Since the beginning of the Expo 2020 Dubai, the market has seen 23,739 real estate sales transactions worth $17.27 billion. This included 13,120 secondary/ready sales transactions worth $11.21 billion and 10,619 off-plan sales transactions worth $6.05 billion.