Dubai property sales continue to surge in October

October witnessed another stellar month for Dubai’s booming real estate market. Latest data from Property Monitor show that property sale prices rose 1.77 per cent last month in the emirate.

The average property values in Dubai now stand at Dh1,065 per sq ft according to the Property Monitor Dynamic Price Index (DPI), “a level not seen since the time of the last market upswing in November 2013 and then re-visited later in March 2018,” Property Monitor’s Monthly Market Report stated on Friday.

“The current market problems in North America, China and Europe and currently not affecting the Gulf where demand remains robust despite the rising interest rates as a consequence of the dollar-dirham peg,” the report stated.

The volume of sales transactions remains at par with last month, declining a 0.7 per cent to 8,626 registrations. Residential transactions — those for apartments, townhouses, and villas — accounted for 92 per cent (7,935 sales transactions) of the total, with hotel apartments (3.4 per cent ), office (1.9 per cent ), and land sales (1.7 per cent) being the highest transacted commercial property types.

Year-to-date, there have been 77,238 transactions registered (89.2 per cent of which were residential) equal to 126 per cent of the entire annual transaction volume of 2021. At the current annualised pace, Property Montior predicts that sales volumes will reach just over 92,000 and record the second highest year in Dubai market history.

The volume of resales transactions also witnessed a significant increase. They stood at 3,467 in October, representing a market share of 40.2 per cent , jumping 4.2 per cent month-on-month. “This jump in resale activity can be likely attributed to an increase in secondary sales of offplan properties where the initial buyers, in most cases, are cashing out with a premium in hand,” the report said.

New off-plan development project launches soared in October adding a further 3,431 units to the market for sale at an anticipated combined gross sales value of around Dh12.3 billion. Apartments represent 56 per cent by volume of this new inventory while townhouses and villas represent 31.3 per cent and 12.6 per cent respectively. Year-to-date new project launches are just shy of 37,000 units and have surpassed Dh104 billion in aggregate sales value, the report showed.

In October mortgage transaction volumes spiked to their highest level since September 2021, reaching 2,386 loan registrations for the month.

The report expects the Dubai real estate market will continue to remain healthy. “Our analysis indicates that we are witnessing a multi-phase cycle, with each phase being driven by different market segments combined with more moderate price appreciation compared to the previous 2 year 2013-2014 upcycle. We believe this will likely result in a more sustainable and longer growth period that extends into mid-late 2023,” the report said.

Zhann Jochinke, chief operating officer, Property Monitor, said: “With no current signs of a slowdown in new development project launches, the uptake of this new inventory will continue to be an area that needs to be closely monitored. While the data points to a market that has so far been able to absorb the high volume of new units available, almost every market cycle is pushed from growth to decline by an imbalance in supply and demand, with supply increasing too rapidly.”

• Business