This was the strongest April for real estate in 13 years as new visa requirements continue to entice investors. Prices will grow this year, but at a slower rate.
Despite a steady rise in costs, recent data indicates Dubai’s real estate continues to attract investors and end-users. Last month, home sales increased by 55.9% year over year as demand for villas and flats remained strong. Home sales transactions, on the other hand, fell 17.4% month over month. According to the ValuStrat Price Index (VPI), “The month-on-month performance saw cash and mortgage sales of ready properties decline 13 per cent and off-plan Oqood (contract) registrations down 23.3 per cent.“
According to Property Finder’s exclusive demand statistics, Dubai’s 6,983 real estate sales transactions totaled Dh18.2 billion in April. This is the biggest monthly total since 2009. Secondary market sales transactions accounted for 60% of the total, with 4,212 transactions for Dh12.86 billion. Off-plan properties accounted for 40% of the total, with 2,771 properties worth Dh5.33 billion.
When compared to the same month in 2021, there were 45.48 percent more transactions in April this year. This resulted in a 66.62 percent increase in value. Property Finder’s data indicates a 46.2 percent increase in secondary volume and a 63.86 percent increase in value. Additionally, there has been a 44 percent increase in off-plan sales transactions and a 73.68 percent increase in value.
“All eyes were on the real estate performance post Expo 2020, and with April 2022 performing the highest since 2009, the data is a strong testament to the growing appeal for the Dubai Real Estate Market,” said Scott Bond, UAE Country Manager at Property Finder.
“We also see a positive sentiment for investment opportunities following various governmental initiatives, including the recent new categories added to the Golden Visa rules, making Dubai’s properties one of the most preferred investment assets for the long term.”
The data points to Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills (Akoya by DAMAC), and The Springs as the top locations for villas in 2022. Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, and Jumeirah Village Circle are the main locations of interest for apartments.
The home price index saw a 1% increase in capital values to 79.8 points in April compared to the January 2014 base period. The index saw 19 transactions worth more than Dh30 million last month, indicating an increase in demand for luxury properties. This highlighted the Dh96 million sale of a six-bedroom property in Dubai Hills. Villas account for 13% of the market and had capital values rise at a slower monthly rate of 1.8 percent in April, closer to the peak reached in January 2014. In April, average year-over-year villa prices increased 33.8 percent. The increasing trend is expected to continue this year, albeit at a slower pace.
Source: https://www.arabianbusiness.com/industries/real-estate/463113-dubais-real-estate-sales-hit-four-year-high-in-april