Real Estate

Overview of Dubai’s Real Estate Sector Performance – Q2 2022  Recently Mo’asher published a report which suggested that Dubai’s rental performance index and sales price has seen a significant growth, with the real estate market recording a total of 8,897 transactions estimating around AED 22.75 billion (USD 6.2 billion) for the month of June. This was recorded to be the highest volume of sales transaction in the past nine years. In June 2022, Dubai witnessed a growth in the volume of real estate properties by 34%, while the value of the real estate properties grew by 24.8% when compared to May 2022. It is also estimated that approximately 60% of the sales transactions that were recorded falls under the secondary property market, while the remaining 40% were from off-plan properties. Read: Dubai – World’s Most Popular Travel & Tourism Destination Dubai Real Estate – Off-Plan & Secondary Market Performance In June 2022, the real estate market in Dubai saw an off-plan market transaction of more than 3,554 properties which was estimated to be more than of AED 7 billion (USD 2 billion). Similarly, for the same period, the secondary real estate market saw a transaction of 5,343 properties worth AED 15.7 billion (USD 4.2 billion). While comparing the similar segment for May 2020 in Dubai it is estimated that the number of off-plan transactions in June increased by 29%, and the secondary/ready property transactions increased by 37.5%. The second quarter of 2022 marked the highest quarterly volume of sales transactions over the last 10 years with a total of 22,504 transactions worth AED 59.1 billion (USD 16 billion). Comparing Q1 data with Q2, there was an increase by 9.61% in terms of volume and 6.77% more in terms of value. The Q2 of 2022 also demonstrated a significant performance in the real estate industry and showed an increase of 45.86% for volume and an increase of 61.56 per cent for value when compared to Q2 in 2021. Similarly, in Q2 2022, 59.7% of sales transactions were recorded for secondary properties while 40.3% were for off-plan properties. In terms of the volume of transactions, the off-plan market transacted 6,025 properties worth Dhs18.565bn AED 18.6 billion (USD 5 billion) and the secondary market transacted 13,430 properties worth AED 40.6 billion (USD 11 billion). Read: Dubai to Launch 50 Offices Globally to Promote Commerce and Attract Investments  Dubai – Top Real Estate Transaction by Top Communities The number of off-plan transactions in Q2 increased by 5.75% when compared to Q1 2022, and the secondary (ready) property transactions increased by 12.38%. The second quarter saw 123,856 rental contracts registered of which 59.5% were new contracts while 40.5% were renewals. In Q2 81.4% were annual while 18.6% were non-annual.  The top areas that observed the highest rental transactions in June 2022 were Jebel Ali First (1,423 contracts), Al Warsan First (1,311), Al Barsha South Fourth (1,250), Marsa Dubai (1,202), and Business Bay (1,148). Data that were published by major real estate websites in Dubai such as Property Finder suggested that the top searched areas for apartment rentals in June were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle and Jumeirah Lake Towers. While, the top searched areas for villa/townhouses were Dubai Hills Estate, Jumeirah, Al Barsha, Akoya, and The Springs. Research Konnection is one of the best business setup consultants in Dubai that can support in business consultancy services in Dubai, UAE. Our stellar client reviews indicate that we are among the top business consultants in Dubai.Feel free to reach out to us on hello@researchkonnection.com for support in market research, business planning and feasibility study. …