Dubai recorded 6,652 sales transactions worth $5 billion (AED 18.4 billion) in May 2022, marking the highest volume of real estate transactions for the month of May in the past decade, according to recent data from the Dubai Land Department (DLD).
Mo’asher, Dubai’s official sales and rental performance index launched by the DLD, recorded a total of 6,652 real estate sales transactions in May 2022.
This is a 51.6 percent increase in volume and 66.14 percent rise in the value growth, in comparison to the same period last year.
On a single day – Thursday, June 16, 2022 – the Dubai real estate market recorded realty transactions worth more than AED 1.2 billion.
This included sales of 410 villas and apartments, 32 land plots of land, while mortgages included 80 villas and apartments and 12 land plots.
Dubai real estate transaction data for May 2022
In May 2022, Mo’asher’s monthly Index for sales rose to 1.296 with an index price of AED 1,261,379. The apartment monthly index recorded 1.368 at an index price of AED 1,175,363, while the monthly index for villas and townhouse rose to 1.338 at an index price of AED 2,150,469.
The base year for Mo’asher – launched by the DLD in cooperation with Property Finder – is 2012; the base month for the monthly index is January 2012; and the base quarter for the quarterly index is Q1 2012.
Mo’asher’s data for May highlights the continuous positive performance of Dubai’s real estate sector throughout 2022.
Overall, real estate sales transactions continued to surpass 2021’s average monthly transactions, while the overall sales price index showed a healthy growth since June 2020.
Furthermore, Mo’asher recorded a 0.962 monthly index for rentals. The apartment monthly index recorded 0.966 at an index price of AED 47,910 while the villa/townhouse monthly index recorded 0.867 at an index price of AED 132,401, lower than the base prices from 10 years ago.
Secondary market continues to dominate property demand
The secondary market for sales transactions continued to dominate the real estate market with a steady growth capturing the largest transactions by 58.55 percent in terms of volume and 66.29 percent in terms of value.
Both transaction value and volume indicate the strength in ready and off-plan properties, especially regarding apartments, which accounted for 82.34 percent of total transactions, whereas villas/townhouses represent around 17.66 percent.
Comparing the overall performance of the first five months in 2022 to the same period in 2021, year-on-year data presents an exceptional performance on the total sales transactions in terms of volume with a record of 34,126 transactions compared to 20,713 transactions in the same period last year. This presents a significant 64.76 percent growth rate year on year.
On the other hand, the total rental contracts in May 2022 attained 35,327 registered leases of which 59.6 percent included new contracts whereas 40.4 percent were renewed.
Annual contracts acquired 80.9 percent of the total contracts while 19.1 percent were non-annual. Furthermore, the registered leases for residential purposes acquired around 73.8 percent of the total contracts, while 25.3 percent were registered for commercial purposes.
When compared to May 2021, the total number of rental leases increased by 2.1 percent driven by the renewal contracts which increased by 4.4 percent compared to the first five months in 2021 as well as an increase in annual leases by 11.5 percent.
As for the rental properties by usage, the commercial rental leases witnessed an increase of 8.47 percent compared to the first five months in 2021.
The top areas according to Ejari registrations for the most rental transactions in May 2022 were:
- Jabal Ali First (1,398 contracts)
- Al Warsan First (1,285)
- Business Bay (1,029)
- Al Barsha South Fourth (958)
- Nadd Hessa (957)
- Marsa Dubai (946)
- Muhaisanah Fourth (934)
- Al Nahda Second (893)
- Al Thanyah Fifth (798)
- Al Karama (776)