Dubai’s residential market showed strong growth in August, with total sales increasing 37 percent annually to Dh31.2 billion ($8.5 billion), boosted by rising demand for off-plan units.
The value of off-plan sales doubled year-on-year last month to Dh16.79 billion, according to the latest market report from EFG Hermes.
Robust activity in the Dubai Land and Business Bay areas drove off-plan sales, the report found.
Average sales prices continued their upward trend last month, rising 20 percent year-on-year to an average of Dh2,230 per square foot.
Rates in the luxury segment recorded strong annual growth of 37.7 percent, with average prices of Dh3,870 per square meter.
The top five areas in terms of transaction value were Dubai Harbor (Dh2.7 billion), The Palm Jumeirah (Dh2.49 billion), Downtown Dubai (Dh778 million), Jumeirah (Dh393 million) and Dubai Healthcare City (Dh349 million).
In the affordable segment, prices rose 8.5 percent annually in August, with average rates of Dh1,815 per square meter, EFG Hermes said.
The total transaction value was approximately Dh13 billion, with the top five areas including: MBR City (Dh3.7 billion), Business Bay (Dh2.3 billion), Dubai Marina (Dh1.07 billion), Arabian Ranches (Dh1.01 billion) and The Lagoons (Dh837 million).
Meanwhile, prices in the budget segment fell 4.5 percent year-on-year, although they rose 4.4 percent on an average of Dh990 per square meter on a monthly basis.
Looking at transaction values, the top five areas were Dubai Land (Dh4.9 billion), Dubai South (Dh1.28 billion), Jumeirah Village Circle (Dh915 million), Al Furjan (Dh713 million) and Jumeirah Golf Estates (Dh544 million) . ).
Dubai’s real estate market has recovered strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for retirees and remote workers.
The emirate’s move to expand its 10-year golden visa program and higher oil prices also supported the real estate market’s growth momentum.
Residential property prices in Dubai rose 17 percent year-on-year in the second quarter, marking the tenth consecutive quarter of expansion, amid strong demand and robust economic growth, a report from consultancy Knight Frank shows month.
Overall, total transactions in Dubai’s property market rose by almost 25 percent annually to Dh44.67 billion in August, the EFG report said.
While residential and office activities recorded a strong increase, land transactions recorded the least annual growth.
Rental market mixed
On the rental side, the market recorded mixed performance in August, the EFG report shows.
Areas such as Motor City, Downtown Dubai (affordable) and Dubai Sports City saw strong annual growth of 37.5 percent, 29 percent and 28 percent respectively for two-bedroom apartments.
However, in Downtown Dubai (luxury), rental prices fell by 17.6 percent year-on-year, and in Emirates Living (The Greens) and International City they increased by 11 percent and around 14 percent respectively for two-bedroom apartments. units.
Updated: September 20, 2023, 3:00 AM
