Prices of real estate in the emirate of Dubai fell by 0.31%

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Dubai real estate values fall for the first time in 2022 and currently stand at AED 1,019 (USD 277) per sq. ft.

In recent months, a record number of real estate transactions have been made in the Dubai real estate sector, and property prices have consistently increased month over month. According to data released by Dubai’s Land Department (DLD) on Wednesday, July 13, real estate transactions worth more than AED 1B (USD 272M) were registered on the Dubai property market.

Real estate transactions included 304 property sales that totalled AED 735.85M (USD 200M), 77 mortgage deals of AED 263.54M (USD 71.7M), and 12 gift deals worth AED 24.3M (USD 6.6M).

Property sales included 282 villas and apartments worth AED 651M (USD 177M) and 22 land plots worth AED 84.68M (USD 23M). Mortgages included 65 villas and apartments worth AED 136.77M (USD 37M) and 12 land plots valued at AED 126.77M (USD 34.5M).

According to Property Monitor, June bucked the trend of increasing property prices from month to month when the price of real estate fell by 0.31%. It was the first time prices went down this year.

As experts said, the Dubai real estate market’s resilience in the face of inflation seems to be on a runaway of rapidly rising interest rates, as well as the strength of the Dirham due to the US dollar continuing to battle any risks.

The growing volume of deals was also registered at 8,865 sales in June, which is 38.8% more sales compared to the same period last year. Residential property transactions led to an increase, which represented 89.3% of the total deals.

Commercial real estate transactions included hotel apartments at 4.1%, land sales at 2.7%, and office sales at 2.6%.

Average gross rental yields also showed good results in June and increased to 6.3%, which is the highest rate since October 2019. Yields for apartments rose from 0.7% to 6.82%, while yields for townhouses grew from 5.4% to 5.51%. Further rental yield growth in the coming months is projected against the background of a slowdown in the growth of real estate prices.

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