May - 2022 | Dubai Real Estate Market Report

 
  • May - 2022 | Dubai Real Estate Market Report


    ​The unparalleled performance​ of the Dubai property market​​ in 2022 continues as​ May​ hits a new all-time-high record​ for this month compared to previous years. The total sales value exceeded AED 18B with nearly 7,000 transactions, at a sales volume increase of over 53%. Remarkably, the ready villa sales lagged by - 35% whereas other types of property contributed to this outstanding performance.
     

    Property sales volume in May over years - DXB Interact

    Year To Date Performance

    The property sales value is nearly 100% higher than that of 2021 at this point exceeding AED 93B. While the sales volume increased by 65% to 34,742 transactions. This shows that Dubai continues to be a safe haven and attractive destination to investors around the globe. Moreover, 2022 has witnessed the launch of over 14,500 properties making an increase by 135% vs. 2021.

    Number of launched properties Jan-May

     ( The units count of some projects have not been announced)

    Mortgage Transactions and Value

    Mortgage transactions continue to decrease, indicating that the high number of sales is coming from cash buyers and investors.

    Even with the fed increasing the interest rate, the property market has not been affected in Dubai.

    Price Changes

    The average property price is the highest we have ever seen on record for May. 

    Average property price for May - off-plan, and ready-made - all property types

    The price of off-plan apartments has more than doubled due to the fact the property sales in May 2022 were mainly in Downtown and Business whereas in 2021 were mainly in the affordable areas. Ready villas are the only property type with a price decline.

    ** Prices change across Dubai could be attributed to selling properties in different areas than the areas last year. You can visit our interactive reporting tools to get more precise information.
     

    Transactions Breakdown

    Apartment sales were responsible for a vast majority of the transactions. 

    • Over 4,700 apartments were sold, up 61.6% vs. May 2021, amounting to nearly AED 10B. ​​
    • Over 1,300 villa transactions took place, which is a 24% increase vs. May 2021, amounting to AED 4B.
    • Nearly 500 plots were sold, which is a huge 90.4% leap compared to May 2021, amounting to over AED 4.3B.
    • Nearly 200 commercial property transactions took place, which is up by nearly 40% compared to May 2021, amounting to nearly AED 300M.

    Top Performing Areas
     

    Business Bay - Dubai 

    Nearly 800 off-plan and ready property transactions occurred in Business Bay, keeping the bustling business center at the top of our list. 

    Apartments

    • Off-Plan: Business Bay - 474 transactions mainly in Peninsula One & Two. Also, a lot of sales took place in Damac projects such as Vera, Reva, AYKON City, and Zada. Remarkably, 50 transactions happened in  a new Tower called Ahad Residences.
    • Ready-Made: Business Bay - 238 transactions

    Villas

    • Off-Plan: DAMAC Lagoons - 325 transactions
    • Ready-Made: Akoya Oxygen - 103 transactions

    Commercial

    Demographics

    Purchase Age Groups

    We are seeing that the age groups from 31-45 are highly interested in buying off-plan properties. 

    Off-plan apartment transactions - Age demographics - DXB Interact

    Buyers aged 41-45 showed the biggest increase in purchasing off-plan, with a nearly 70% increase compared to May of 2021. Buyers of the 36-40 age group made the most off-plan apartment purchases with 441 total transactions, an increase of over 44% compared to May of 2021.

    Ready property transactions are also increasing for all age groups, but at a slightly slower rate than off-plan property buyers.

    Property Sales Volume by Price Range

    Properties sold for AED 2M and less made for 66% of the total sales volume with 4,208 transactions.

     

    May Property Sales Volume by Price Range (off-plan/ready-made combined, all property types)

    • Below 1M: 2,071 transactions.
    • 1M-2M: 2,137 transactions.
    • 2M-3M: 1,029 transactions.
    • 3M-5M: 880 transactions.
    • 5M+: 603 transactions.

     

    Off-Plan vs. Ready Property

    Off-plan properties are selling slightly more than ready properties. In previous months, ready properties were selling at a higher volume and value.

    (All property types, excluding plots)

    For the Love of Luxury

    Luxury property sales hit a new high record, with 211 properties valued over AED 7M being sold, at a total value of over AED 3.3B, compared to AED 2.7B in 2021. (176 properties valued over AED 7M)
     

    Six Senses Residences - Sky Villas

    Top five projects with the most expensive sold apartments:

    1. Six Senses Residences - Palm Jumeirah - AED 82M
    2. Il Primo - Downtown - AED 51M
    3. Le Ciel - Jumeirah First - AED 42M
    4. The Royal Atlantis Residences - Palm Jumeirah - AED 40M
    5. Dorchester Collection - Business Bay - AED 39M

    Top five areas with the most expensive sold villas:

    1. Emirates Living - AED 103M
    2. MBR - District One Villas - AED 54M
    3. Hills View Community - Dubai Hills - AED 44M
    4. Palm Villas - Palm Jumeirah - AED 41M
    5. Villa Amalfi - Island 2 - AED 23M

    Key Takeaways

    We experienced the highest number of transactions on record for May this year. A high number of off-plan and ready apartment transactions caused the massive jump.

    • The uptrend phase continues in the Dubai Property where 2022 has been the best year ever.
    • Emaar is currently selling the most off-plan apartments especially in The St. Regis Residences & Creek Palace while Damac led the villas sales mainly in Damac Lagoons.
    • The increase in the off-plan apartments prices is attributed mainly to the sales in Business Bay and Downtown whereas in 2021 the sales were concentrated in JLT, JVC, Arjan…
    • Plot transactions increased by over 90% compared to May 2021, with nearly 500 transactions.
    • Business Bay remains the hottest area for apartments.
    • Mortgage transactions continue to decline, indicating a growing number of cash-paying investors.

    For more information on the state of Dubai’s property market and trends, have a quick look at our Interactive Reporting Tool.



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