Figures point to a 51.5% increase year-on-year for sales volume and a 65.4% increase for sales value when compared to May 2021
Data on Dubai Land Department’s website shows there were 6,651 real estate sales transactions worth $4.98bn in May 2022 according to Allsopp & Allsopp. The firm notes those figures are the highest on record for May in the last 13 years in terms of both sales volume and value.
The figures represent a 51.5% increase year-on-year for sales volume and a 65.4% increase for sales value when compared to May 2021, the firm pointed out.
“The Dubai real estate market continues to consistently show steady growth month-on-month when compared to last year. Also, just like last month, we saw a repeat in trend with May being the second highest on record for sales volume and value, with May 2009 being the highest,” said Lynnette Sacchetto, Director of Data and Digital Transformation at Allsopp & Allsopp. Sacchetto recently joined the firm after a stint at PropertyFinder.
She adds, “To break it down further, 58.5% of the sales transactions were in the secondary/ready market with 3,894 sales transactions worth $3.29bn and 41.5% were in the off-plan market with 2,757 sales transactions worth $1.68bn.”
When the data is compared to April 2022, there was a 5.11% decrease in overall sales volume and 0.1% decrease in sales value month-on-month. The secondary Dubai property market saw a 7.97% decline in sales transactions with the off-plan market seeing a 0.7% decline month-on-month, Allsopp & Allsopp explained.
Lynnette remarks, “As the months progress, we still haven’t seen the effect of rising interest rates and inflation in the real estate market. Petrol prices rose by 13% in June but yet the residential sales market still seems to be unscathed. Sales volumes dip marginally, and sales prices still hold strong and even grow in high demand areas and segments.”
“The off-plan market continues to thrive with high demand and new launches continuing to be released. With the summer months coming upon us, it will be interesting to see how travel trends, both outbound and inbound, will affect the Dubai real estate market.”
Lewis Allsopp, CEO of Allsopp & Allsopp commented, “Our data shows the trends and a true pulse of what is happening in the real estate market today, from the front line. Following on from the trends of the year, May was also a very busy month for us and sales value performance grew in Allsopp & Allsopp by 57% year-on-year.”
He stated, “This could be the result of buyers purchasing properties before we see the increases in interest rates, which will have an effect on mortgages. We must also take into consideration the appeal of Dubai on a global scale. The city has consistently attracted overseas buyers but now more than ever, we see a lot of interest from buyers who are looking for properties in the city has not yet made the move to the city or have been here for only a short period of time.”
The top three areas for May sales were the Dubai Marina, Downtown Dubai and The Springs and 52% of Allsopp & Allsopp’s buyers were financed, while 34% were cash purchases and the rest opted for developer incentives in the off-plan segment, the firm concluded.