The sharp decline in unscheduled registrations observed in Dubai in recent months is due to a combination of factors. These include a delay of two to three months between the purchase of homes and their registration with the Dubai Land Department (DLD), as well as a decline in the number of new projects during the summer, which significantly affected the supply of new residential units. A new study by Realiste, a leading AI-based proptech company, shows that despite this perception, the city’s real estate market remains robust.
The study shows a 46% increase in transactions and a remarkable 37% increase in the total value of registered sales in September and October this year compared to 2022. This contradicts recent reports citing DLD data indicating a 65 percent drop in registered off-plan sales from September to October, raising concerns about the end of the bull market.
Realiste emphasizes that its AI study is based on data sourced directly from developers in Dubai via integrated CRM systems. The proptech company operates globally and receives over 300 Excel spreadsheets of data from Dubai’s developers every day, enabling it to gain insights into actual market conditions.
The supposed slump in off-plan sales is attributed to timing inconsistencies and a deliberate reduction in project launches in the summer and is not a sign of an imminent market collapse. Realiste highlights a crucial but often overlooked element – a 2-3 month gap between a contract with a developer and registration with the DLD.
The study points out that the observed decline in non-construction sales is due to transactions concluded on average in June, July and August, which illustrates the complexity of the market data. In addition, the scarcity of project launches during the summer season, when developers put three times fewer listings on the market than in 2022, has accelerated the sell-off and redefined market dynamics, contributing to the perceived decline in off-plan sales.
Despite this decline, Dubai’s real estate market remains resilient. The study shows a steady increase in bookings, which indicates the continuing vitality of the market. The fact that the primary market exceeds the secondary market in size is identified as a particular market condition in Dubai’s real estate sector, fueled by the strategic advantages of acquiring new buildings during rapid growth.
The primary and secondary real estate markets in Dubai continue to show healthy growth, with a 46 percent increase in transactions in September-October compared to 2022. The total value of registered sales also rose by 37 percent during this period, disproving the notion of an imminent market correction. The study concludes that a holistic view, taking into account factors such as the number of bookings, is essential to accurately assess the health of Dubai’s real estate market.
Source: www.arabianbusiness.com
