DUBAI, 25th May, 2022 (WAM) — Dubai’s Dubai’s real estate market recorded 6,983 sales transactions in April, representing a significant increase of 45.5% compared to April 2021, making it the highest performance for the month in the Dubai real estate sector in 10 years, According to Mo’asher, Dubai’s official Sales Price and Rental Performance index launched by Dubai Land Department (DLD) in cooperation with Property Finder.
The base year for Mo’asher is 2012, and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.
In April 2022, Mo’asher recorded a 1.273 monthly Index for sales and an index price of AED 1,238,401. The apartment monthly index recorded 1.331 and an index price of AED 1,140,201, and the villa/townhouse monthly index recorded 1.318 and an index price of AED 2,124,828.
Moreover, Mo’asher recorded a 0.957 monthly index for rental and an index price of AED 51,672. The apartment monthly index recorded 0.96 and an index price of AED 47,578 and the villa/townhouse monthly index recorded 0.872 and an index price of AED 132,917.
Mo’asher’s data for April showcased a dynamic market trend in Dubai’s real estate sector month-on-month. Overall, sales transactions continue to grow, surpassing 2021’s average monthly transactions; the overall sales price index shows a healthy growth since June 2020.
The secondary market for sales transactions continues to dominate the real estate market with a steady percentage of 60.32% in terms of volume and 70.70% in terms of value. Both transaction value and volume show the strength in ready properties, especially regarding apartments, which represent around 79% of total transactions, whereas villas/townhouses represent around 21%.
Comparing the overall performance of the first four months in 2022 to the same period in 2021, year-on-year data presents an outstanding performance on the total sales transactions in terms of volume with a recorded 27,507 transactions compared to 16,341 transactions in the same period last year. This presents a significant 68.33% growth rate year on year.
On the other hand, the total rental contracts in April 2022 reached 41,810 registered leases, of which 60.4% were new contracts while 39.6% were renewed. The annual contracts acquired 79.5% of the total contracts, while 20.5% were non-annual. Furthermore, the registered leases for residential purposes acquired around 74% of the total contracts, while 25% were registered for commercial purposes.
When compared to April 2021, the total number of rental leases increased by 3.2%. The number of new contracts increased by 8% to represent 60.4% of the total number of contracts compared to 57.7% in April 20221. Additionally, the total number of leases increased from 72.9% in April 2021 to 79.5% in April 2022, while the share of commercial rental leases witnessed a 4.23% increase during April 2022 to represent 25% of the total number of leases compared to 20.77% in April 2021.
Comparing the first four months in 2022 to the same period in 2021, Mo’asher concludes that the total rental leases in terms of volume witnessed a 6.47% increase, which recorded 202,340 rental leases in 2022 compared to 190,043 in 2021.
The top areas, according to Ejari Registrations, for the most rental transactions till April 2022 were Al Warsan First (8,311), Jabal Ali First (8,038 contracts), Naif (6,630), Business Bay (6,605), and Al Karama (6,160), Nadd Hessa (6,058), Marsa Dubai (5,895), Al Nahda Second (5,725), Al Barsha South Fourth (5,680), and Al Suq Al Kabeer (5,491) According to Property Finder’s proprietary data, the top areas searched for in April 2022 for sales were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, Jumeirah Village Circle, and Jumeirah Beach Residence. The top overall searched areas for villa/townhouse sales in April were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC) and The Springs.
According to Property Finder’s proprietary data, the top searched areas for apartment rentals in April were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle and Jumeirah Lake Towers. The top searched areas for villas/townhouses were Dubai Hills Estate, Jumeirah, Al Barsha, Arabian Ranches and The Springs.