September - 2022 | Dubai Real Estate Market Report

 
  • September - 2022 | Dubai Real Estate Market Report


    With September coming to an end, the ongoing surge in property transactions continues. 

    This was the best performing month of September Dubai has seen on record.

    Dubai witnessed more than 8,600 transactions, at a sales volume increase of nearly 50% compared to September 2021. The total sales value reached over AED 24B, and the property sales value is also 50% higher than in September 2021. 

    There is a heightened interest in both off-plan and ready apartments with these properties making up for over 6,300 transactions alone, at an increase of 76% compared to September 2021.

    Property sales volume in September over the years - All types - Off-plan and ready combined - DXB Interact

    Property sales value in September over the years - All types - Off-plan and ready combined - DXB Interact

    Mortgage Transactions and Value

    We are continuing to see a decrease in both the number of mortgage transactions and mortgage value, indicating a growing number of cash buyers and investors. 

    Price Changes

    The average (all types) property price per square foot has fully recovered from the Covid 19-related downturn in 2020 and is now up to AED 1,227 for ready and off-plan properties combined.

    Property average price change in September over the years:

    Average property price for September - all property types

    Type

    Avg. AED Price 

    vs. Sep 2021 %

    Off-plan apartment

    AED 1.4M

    12%

    Off-plan villa

    AED 1.9M

    18%

    Ready apartment

    AED 850K

            -14%
    Ready villa

    AED 2.8M

    12%

     

     

     

     

     

     

    Transactions Breakdown

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

    • Nearly 6,400 apartments were sold, up over 76% vs. September 2021, amounting to over AED 12B. ​​
    • Nearly 1,700 villa transactions occurred, which is nearly equal to September of 2021, at a 2% increase, amounting to nearly AED 6B.
    • 344 plots were sold, a 5% jump compared to September 2021, amounting to AED 6B in sales value.
    • Nearly 250 commercial property transactions took place, which is up by more than 40% compared to September 2021, amounting to AED 400M.

    Off-Plan Vs. Ready

    Off-plan sales are out-pacing ready property sales by 18% in volume.

    Top Performing Areas

    1,178 off-plan and ready property transactions occurred in Business Bay, taking this highly sought-after location to the top of our list, with a total sales value of over 1.8B.
     



     

    Damac lagoons - Malta Townhouses

    Damac Lagoons was the highest-selling off-plan villa community, with nearly 300 transactions.

    Off-plan villa sales - September

    Apartments

    • Off-Plan: Business Bay - 823 transactions - Total value: AED 1.2B
    • Ready: Business Bay - 268 transactions - Total value: AED 395M

    Villas

    • Off-Plan: Damac Lagoons - 285 transactions - Total value: AED 765M
    • Ready: Damac Hills 2 - 93 transactions - Total value: AED 114M

    Commercial

    • Off-Plan: Dubai Water Canal - 9 transactions - Total value: AED 22M
    • Ready: Business Bay - 84 transactions - Total value: AED 122M


     

    Property Type Sales Performance in September

    Type

    Volume

    Value

    Change vs. SEP 2021

    Ready Apartments2,5503.5B35% 
    Off-plan Apartments3,8218.6B121%
    Ready Villas6162.7B-36%
    Off-plan Villas1,0783B23.5%
    Ready Commercial224348M36%
    Off-plan Commercial1852M157%
    Ready Plots3446.1B5%

     

     

     

     

     

     

     

     

    Demographics

    Purchase Age Groups

    Buyers of all ages are showing high interest in off-plan apartments. Most notably, the age group of 36-40 had a 161% increase in sales volume compared to September 2021.

    Off-plan apartment transactions - Age demographics - DXB Interact

    Rental Registrations

    Marsa Dubai (Dubai Marina/JBR) is the top performing area for apartment rental transactions, with a total of 2,091 transactions taking place in September. 

    The median rent for Apartments is AED 50K.

    Mirdif is the leading area for villa rentals, with 458 transactions taking place. 

    The median rent for villas is AED 145K.

    We’ve experienced a total of 37K rental transactions this year, which has already topped our record of 33k in 2021.

    One-bedroom apartments make up for more than half of the rental transactions.

    Property Sales Volume by Price Range

    Properties sold for AED 2M or less made for more than 66% of the total sales volume.

     

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

    For the Love of Luxury

    The market remains strong for luxury transactions, with sales values on the rise. The highest transaction value took place at Jumeirah Marsa Al Arab, where an apartment was sold for AED 145M.

    Jumeirah Marsa Al Arab

    Top five projects with the most expensive sold apartments:

    1. Jumeirah Marsa Al Arab - 📍Marsa Al Arab - AED 145M
    2. Six Senses Residences, 📍Palm Jumeirah - AED 92M
    3. The Royal Atlantis Resort & Residences, 📍Palm Jumeirah - AED 45M
    4. The Residence At Marina Gate 2, 📍Dubai Marina - AED 38M
    5. One At Palm Jumeirah,📍 Palm Jumeirah - AED 36M

     

    Top five areas with the most expensive sold villas:

    1. Palm Jumeirah Villa, 📍Palm Jumeirah - AED 145M
    2. Emirates Living, 📍Emirates Living - AED 90M
    3.  Marsa Al Arab Villas, 📍Marsa Al Arab - AED 48M
    4. MBR City, 📍District 1, phase 1 - AED 42M
    5. Elysian Mansions, 📍Tilal Al Ghaf - AED 41M

    Key Takeaways

    This was the best performing month of September on record for sales value and volume.

    • Apartment transactions were responsible for the majority of sales, with nearly 6,400 transactions, up over 76% vs. September 2021, amounting to over AED 12B in sales.
    • Damac is the leading developer for transactions of both ready and off-plan villa projects. Damac Lagoons is spearheading the off-plan villa sector, with a total sales volume of 285 properties, amounting to a value of nearly AED 2B, while Damac Hills 2 is the leading ready villa community in sales. 
    • The luxury property surge continues, with several remarkably highly-valued transactions taking place this month. One apartment sold for AED 145M at Jumeira Marsa Al Arab.
    • We are seeing massive growth of interest in off-plan apartments coming from all ages, particularly the 36-40 age group, who made 161% more transactions compared to September 2021.

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

    **Notes and Disclaimers:

    • In this report, “transaction” refers to the actual property sales, which do not include mortgage or gift transactions.
    • Off-plan property could be sold by a developer or individual. 
    • Some villa transactions were registered as plots in The Dubai Land Department, so we modified what we notice to be villas with a high level of accuracy.
    • Plot transactions are excluded when it comes to comparing off-plan vs. ready property sales.
    • We are not responsible for any investment decision made based on the information in this report.
    • Figures have been rounded to the neared tenth for clarity.


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