Dubai Real Estate transactions reached a total worth of AED69.4bn ($19bn) in Q3 according to a report by Morgan’s International Realty.
The total of 25,496 transactions was an increase on the AED59bn (22,431 transactions) in the previous quarter.
Despite strains on the global economy and inflation concerns the third quarter of 2022 ended on a strong note, extending the growth and recovery period to 23 months since bottoming out.
Dubai real estate optimism
“The optimism of property developers was mirrored in supply statistics, with 31,000 units added to the market’s inventory since the beginning of the year, the highest since 2018,” said Elias Hannoush, Managing Director of Morgan’s International Realty.
“As developers prepare to announce the launch of new master communities or restart development on some major on-hold communities, such as Nakheel’s palm Jabal Ali, we anticipate an increase in the number of releases in the upcoming quarters.”
The AED64.9bn total value of Dubai real estate transactions in Q3 is a 65% increase on the AED42bn in Q3 last year, with a significant jump from the 15,792 transactions in that period.
The average price per square foot of Dubai property is 16% higher than this time last year according Morgan’s International Realty.
Townhouses and villas have seen the greatest price increases, with the average price per square foot leaping 30% in the year to AED1,282 per square foot. Apartments had a comparable rise of 29% year on year to AED1,512 per square foot, while hotel apartments (AED2,404 per square foot) and commercial property (AED1,381 per square foot) had more modest gains of 10% and 8% respectively.
Summarising the wide-ranging report a Morgan’s International Realty analyst said: “Despite several interest rate increases by the UAE’s central bank, mortgage activity increased during the quarter, boosted by refinancing and bulk mortgage transactions.
“Mortgage volumes increased by 9% from the previous quarter and by 185% year on year, while cash transactions decreased by 2% from the previous quarter but remained 86% higher than the previous year.
“Secondary market (ready property) transactions were steady as compared to the previous quarter, yet 52% higher than the previous year.
“On the other hand, primary market (off-plan) transactions grew by 31% quarter-over-quarter and 74% year-over-year as a result of a surge in new development launches by property developers catering to the recent increase in demand from high-end luxury property buyers.”
The strong Q3 performance of Dubai real estate has continued into this month.
A total of 2,703 Dubai real estate transactions worth AED8bn were conducted during the week ending October 21, 2022, according to figures released by the Dubai Land Department (DLD).
147 Dubai real estate plots were sold for AED1.12bn, and 2,023 apartments and villas were purchased for AED4.79bn, WAM reported.
The top transactions were a land Fourth sold for AED85m in Al Thanayah, and another sold for AED63m in Island 2.
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