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The Dubai property market recorded 9,720 total sales in August, worth AED24.3 billion ($6.62 billion), the highest month for sales transactions and value in 12 years, a report said.
On a year-over-year basis, transaction volumes in August were up about 37.1% and 69.6%, respectively, compared to the same period last year. In terms of value, it rose 16.1% month-on-month in August and around 63.6% year-on-year, according to a report by leading proptech firm Property Finder.
In terms of transaction volume growth, total ready property sales rose 27.4% from July 2022 to 67.5% compared to August 2021. In addition, transaction value increased by about 6.7% month-on-month and 57.4% year-on-year, the report said.
The off-the-plan market saw 4,392 properties valued at AED8.5 billion, the highest monthly transaction in 12 years. Taking into account the transaction volume, the off-the-plan housing market saw a sharp increase of 51.1% month-on-month and 72.1% year-on-year. In terms of value, the market surged 38.5% month-on-month and 76.5% year-over-year.
On the other hand, in terms of volume, the mortgage industry grew by 15.7% month-on-month and 21.2% year-on-year, hitting a record high.
The leasing market recorded a 10.6% MoM growth in August, with leasing contracts down 9.3% YoY due to an 18.9% YoY decline in the renewal rate.
In addition, annual contracts increased by about 12.4% month-on-month and 4.4% year-on-year, while non-annual contracts fell 52.2% year-on-year. Residential contracts rose more than expected, gaining 70.9% in August – 7.5% MoM – unlike commercial use contracts, which rose 21.3% MoM and fell slightly by 0.6% YoY.
Mohamad Kaswani, Managing Director of Mortgage Finder, said: “Despite global headwinds, the Dubai property market continues to deliver on its true merit. We note that current trends are redefining the near-term future of the property market, and as interest rates continue to rise, we see A large number of mortgage borrowers choose our fixed rate products in hopes of stabilizing their housing costs. Conversely, as high rent prices skyrocket across the city, first home buyers are actively considering buying a home to provide their families with more stability. Additionally, as demand for residential properties continues to rise, many tenants find themselves forced to buy the properties they live in to relieve pressure from landlords demanding higher rental prices. Mortgage repayments are 50 per cent higher than at the same time last year, and most of that is due to rising house prices.”
Mark Bellamy, Founding Partner of Williams International, said: “We are optimistic about the performance of the real estate market. Dubai has time and again outperformed other metropolises in the face of global economic challenges. We have witnessed a large number of HNWIs and overseas Buyers invest in high-end developments in the UAE, all of which are testament to the abundance of security and unparalleled opportunities in this city, a global hub for business, tourism and innovation.” – arab trade news agency
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