Highest May on record in terms of real estate sales volume and value in the last 13 years.
Dubai Sales Transactions Highlights from Dubai Land Department Open Data
- Second highest May on record in terms of real estate sales volume and value with May 2009 being the highest
- 58.5 percent of the transactions were in the secondary market and 41.5 percent in the off-plan market
- 68 percent increase in off-plan volume and 144% percent increase in off-plan value year-on-year
- Secondary - 41 percent increase in secondary volume and 42 percent increase in secondary value year-on-year
- 51.5 percent increase in overall volume and 65 percent increase in overall value year-on-year
Data available on the open data platform of Dubai Land Department for May 2022 shows there were 6,651 real estate sales transactions worth AED 18.3 billion - the highest May on record in terms of real estate sales volume and value in the last 13 years. This is a 51.5 percent increase year-on-year for sales volume and a 65.4 percent increase for sales value when compared to May 2021.
Lynnette Sacchetto, Director of Data and Digital Transformation at Allsopp & Allsopp says “The Dubai real estate market continues to consistently show steady growth month-on-month when compared to last year. Also, just like last month, we saw a repeat in trend with May being the second-highest on record for sales volume and value, with May 2009 being the highest.
To break it down further, 58.5 percent of the sales transactions were in the secondary/ready market with 3,894 sales transactions worth AED 12.1 billion and 41.5 percent were in the off-plan market with 2,757 sales transactions worth AED 6.18 billion.”
When the data is compared to April 2022, there was a 5.11 percent decrease in overall sales volume and 0.1 percent decrease in sales value month-on-month. The secondary Dubai property market saw a 7.97 percent decline in sales transactions with the off-plan market seeing a 0.7 percent decline month-on-month.
Lynnette explains “As the months progress, we still haven’t seen the effect of rising interest rates and inflation in the real estate market. Petrol prices rose by 13 percent in June, but yet the residential sales market still seems to be unscathed. Sales volumes dip marginally, and sales prices still hold strong and even grow in high demand areas and segments.
The off-plan market continues to thrive with high demand and new launches continuing to be released. With the summer months coming upon us, it will be interesting to see how travel trends, both outbound and inbound, will affect the Dubai real estate market.” says Lynnette Sacchetto Director, Data & Digital Transformation for Allsopp & Allsopp Group.
Allsopp & Allsopp Sales Transaction Data Highlights
To enhance the market data with proprietary data the Allsopp & Allsopp Group, leaders in the Dubai real estate industry, has over 13 years of historical data as well as real time data.
Lewis Allsopp, CEO of Allsopp & Allsopp says “Our data shows the trends and a true pulse of what is happening in the real estate market today, from the front line. Following on from the trends of the year, May was also a very busy month for us and sales value performance grew in Allsopp & Allsopp by 57 percent year-on-year.
This could be the result of buyers purchasing properties before we see the increases in interest rates which will have an effect on mortgages. We must also take into consideration the appeal of Dubai on a global scale. The city has consistently attracted overseas buyers but now more than ever, we see a lot of interest from buyers who are looking for properties in the city having not yet made the move to the city or have been here for only a short period of time.”
The top three areas for May sales were Dubai Marina, Downtown Dubai and The Springs and 52 percent of Allsopp & Allsopp buyers were financed while 34 percent were cash purchases and the rest opted for developer incentives in the off-plan segment.
In Dubai Marina, Allsopp & Allsopp average sales price for May was AED 1.8M, in Downtown Dubai it was AED 2.89M and in The Springs AED 2.99M. To break it down even further and offer more insights, the top three seller nationalities in May for Allsopp & Allsopp were British, Indian and Canadian while the top three buyer nationalities in May were British, Indian and French.
Dubai Rental Transactions Highlights from the Dubai Land Department Open Data
- May had 58,153 rental EJARI registrations
- 64 percent increase year-on-year when compared to May 2021
In May, according to the open data platform of Dubai Land Department, there were a total of 58,153 rental EJARI registrations which is a 2 percent decline in the number of contracts when compared to April 2022 and a 64 percent increase year-on-year when compared to May 2021.
To break it down further, 29,394 EJARI registrations in May were for new contracts and 28,759 were for renewals. Of those total registrations, 44,032 contracts were for residential properties and 13,567 were for commercial units while 554 were for others. Within the residential sector, 52,536 rental contracts were for apartments while 4,448contracts were for villa/townhouses.
Sacchetto says “In April, we saw a significant increase month-on-month for total rental contracts in Dubai and May’s numbers followed suit with April. .
I believe the rental activity will continue to increase month-on-month due to various significant factors in the market which have all come together to create the perfect storm. This includes the various government initiatives to entice talent and businesses to Dubai, the rising cost to purchase properties, higher cost of living and the new visa schema coming into effect. More people are coming into Dubai and opting for rentals, both long term and short term. This, of course, will continue to drive rents higher as demand rises which will be a trend I expect to continue into next year.”
Allsopp & Allsopp Rental Transaction Data Highlights
As rental activity is increasing across the city, it’s good to see an in-depth breakdown to put things into perspective. In May, the top three areas for rentals at Allsopp & Allsopp were Jumeirah Lake Towers, Jumeirah Golf Estates and Dubai Marina and the top three nationalities for tenants were British, Russian and French.
In Jumeirah Lake Towers, Allsopp & Allsopp average rental price in May was AED 69,500. In Jumeirah Golf Estates it was AED 775,000 for villas, AED 130,000 for townhouses and AED 76,571 for apartments and in Dubai Marina the average rental price was AED 121,500.
Lewis Allsopp, CEO of Allsopp & Allsopp says “The rental trends are changing as the prices of rental properties in Dubai continue to increase. At Allsopp & Allsopp we don’t normally see Jumeirah Lake Towers in the top three for highest transacted in areas. Over the years we have seen more restaurants, cafes and bars in the area become increasingly popular in the community and tenants are also enticed by its close proximity to the metro and central location within the city. These plus points married with competitive, attractive rental prices are enhancing Jumeirah Lake Towers as a prominent community to live within Dubai.”
Also in May, the top four cheques combinations agreed upon were one cheque, four cheques, two cheques and three cheques. More than 34 percent of the rentals were agreed with one cheque, while 28 percent were for four cheques, 22 percent for 2 cheques and more than 10 percent for three cheques.
The top three areas for Allsopp & Allsopp short term rentals in May were Dubai Marina, Downtown Dubai and Jumeirah Golf Estates.