August witnessed a revival in the Dubai real estate market, which recorded robust growth and significant changes in price dynamics. According to EFG Hermes’ latest report, total real estate sales increased by 37 per cent year-on-year, reaching an impressive $8.5 billion (Dh31.2 billion). This remarkable increase was primarily fueled by the rising demand for off-plan apartments, which played a crucial role in doubling their value year-on-year, generating sales of Dh16.79 billion.
Hotspots for off-plan sales
EFG Hermes’ market analysis has identified Dubai Land and Business Bay as the main drivers of off-plan sales activity, cementing their status as burgeoning real estate hotspots.
Rising real estate values
Average sales prices continued their upward trend, rising by 20 per cent year-on-year to Dh2,230 per square meter. The luxury segment recorded impressive annual growth of 37.7 per cent, with average prices reaching Dh3,870 per square meter.
The five most important areas by transaction value were
Dubai Harbour: Dh2.7 billion
The Palm Jumeirah: Dh2.49 billion
Dubai City Center: Dh 778 million
Jumeirah: Dh393 million
Dubai Healthcare City: Dh 349 million
Affordable housing gains momentum
In the affordable housing segment, prices rose by 8.5 per cent year-on-year in August, with the average price standing at Dh1,815 per square meter. The total value of transactions in this segment amounted to approximately Dh13 billion, with the five most important areas being
MBR City: Dh3.7 billion
Business Bay: Dh2.3 billion
Dubai Marina: Dh1.07 billion
Arabian ranches: Dh1.01 billion
The lagoons: Dh837 million
In the budget segment, however, prices fell by 4.5% compared to the previous year. Nevertheless, they recorded a promising monthly increase of 4.4 per cent and averaged Dh990 per square meter.
The five most important areas for transactions in the affordable housing sector were:
Dubai Land: Dh4.9 billion
Dubai South: Dh1.28 billion
Jumeirah Village Circle: Dh915 million
Al Furjan: Dh 713 million
Jumeirah Golf Estates: Dh544 million
Dubai’s resilience and growth
Dubai’s real estate market has shown remarkable resilience and recovered strongly from the challenges posed by the COVID-19 pandemic. Initiatives such as residence permits for pensioners and remote workers, an extended 10-year gold visa program and low oil prices have boosted growth momentum. The latest report from Knight Frank underlines the continuing upward trend, with residential property prices in Dubai rising by 17 percent in the second quarter, marking the tenth consecutive quarter of growth.
Overall market development
According to the EFG report, total transactions in Dubai’s real estate market increased by almost 25 per cent year-on-year to Dh44.67 billion in August. While both the residential and office real estate sectors recorded significant growth, land transactions showed the lowest growth on an annual basis.
Mixed development of the rental market
The rental market showed a mixed development in August with notable differences between the various areas. Motor City, Downtown Dubai (affordable) and Dubai Sports City saw strong year-on-year growth, recording increases of 37.5 percent, 29 percent and 28 percent respectively for two-bedroom apartments.
In Downtown Dubai (luxury), on the other hand, rents fell by 17.6 percent year-on-year, while Emirates Living (The Greens) and International City recorded a slight increase of 11 percent and around 14 percent respectively for two-bedroom apartments.
As Dubai’s real estate landscape continues to evolve, both investors and tenants need to closely monitor these dynamic trends in order to make informed decisions in this thriving market.
Source: www.thenationalnews.com
