The property market in Dubai marks the best May in terms of sales deals over the last 10 years

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The emirate of Dubai registered 6,652 sales transactions worth over AED 18.4B (USD 5B) in May 2022, making it the best-selling May over the last 10 years, according to the Dubai Land Department (DLD) data. At the same time, there was a 51.6% surge in volume, and 66.14% increase in the value growth, in contrast to a similar period last year.

In particular, Mo’asher’s monthly Index for sales rose by 1.296 with an index price of AED 1,261,379 (USD 343,409). To be more precise, the apartment monthly index registered 1.368 at an index cost of AED 1,175,363 (USD 319,992), whereas the monthly index for townhouses and villas surged to 1.338 at an index price of AED 2,15 0,469 (USD 585,464). All in all, property sales deals have surpassed 2021’s average monthly transactions, while the sales price index has demonstrated a solid growth since June 2020.

On 16 June, the Dubai property market also witnessed realty transactions worth over AED 1.2B (USD 326.7M). This includes the sales of 32 land plots and 410 villas and apartments, while mortgages encompassed 80 apartments and villas, as well as 12 land plots.

Secondary market for sales deals continued to dominate the property scene with a stable growth, having recorded the biggest transactions by 58.55% in volume and 66.29% in terms of value. Both transaction value and volume illustrate the demand for ready and off-plan real estate, especially in terms of apartments, which accounted for 82.34% of the total deals, and villas/townhouses were about 17.66%.

When comparing the general performance of the first 5 months in 2022 to the same period in 2021, Dubai’s real estate sector recorded 34,126 transactions in contrast with 20,713 in the same period in 2021. This shows a huge 64.76% growth rate year on year.

At the same time, the total rental contracts in May 2022 attained 35,327 registered leases, of which 59.6% featured new contracts, while 40.4% were renewed. Annual contracts accounted for 80.9% of the total contracts while 19.1% were non-annual. On top of that, the registered leases for residential purposes gained around 73.8% of the total contracts, whereas 25.3% were concluded for a commercial use.

According to the Ejari registrations, the top 5 areas for the most rental transactions in May 2022 were as follows:

  • Jabal Ali First
  • Al Warsan First
  • Business Bay
  • Al Barsha South First
  • Nadd Hessa

As stated by the latest CBRE report, the average rents in Dubai over the 12 months to May 2022 have risen by 19.1%, with the average apartment and villa indicators growing up by 18.3% and 24.3% respectively. These figures clearly illustrate the fastest growth rate since late 2014. As of May 2022, the average apartment and villa rental prices were set at AED 83,845 and AED 249,667 respectively. The highest average annual apartment and villa rents were recorded in Palm Jumeirah, where rental prices stood at AED 213,761 (USD 58,197), and in Al Barari with AED 874,171 (USD 837,998) as the average rental price.

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