Highest Property Sales in a Decade Were Reported In Dubai in August

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  • 2 months ago
  • Dubai Properties, Dubai Property Finder, Dubai Property Market, Real Estate Dubai,
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Highest Property Sales in a Decade

In August, 9,720 Sales Transactions Were Recorded In Dubai’s Real Estate Market.

According to Mo’asher, the real estate market in Dubai had its best monthly performance in ten years in August. The Dubai Land Department (DLD) and Property Finder jointly launched Mo’asher, the cities official Sales Price and Rental Performance Index. In August, there were 9,720 sales transactions in the Dubai real estate market. When compared to August of last year, the total value of such sales was Dh24.34 billion, a rise of 69.57%.

The secondary property market accounted for over 54% of the total volume. In addition, nearly 65% of the total value of transactions in August. When comparing August 2018 to August 2021, off-plan sales figures increased by 76.50% in value and 72.10% in volume.

According to Property Finder data, the most popular locations in August for sales searches were Palm Jumeirah, Downtown Dubai, Arabian Ranches, Business Bay, Jumeirah Village Circle, and Dubai Marina. Dubai Hills Estate, DAMAC Hills, Mohamed bin Rashid City, and Dubai Land were top locations overall for searches in August.

According to a report by CBRE released in September, average prices increased on a year-over-year basis by 8.8% in August. Along with average apartment prices increasing by 7.7% and average villa prices increasing by 15.8%.

Jabal Ali First, Al Warsan First, Business Bay, Al Barsha South Fourth, Eyal Nasser, Nadd Hessa, Marsa Dubai, Mirdif, Al Barsha First, and Al Thanyah Fifth were the top rental neighborhoods according to the number of Ejari registrations in August. With 47,212 registered contracts, the majority of which were new rental agreements, new rental agreements saw a significant YoY increase. In August, about 40% of the enrolled rental contracts were extensions.

Investors Are Drawn To Residence Options and High Rental Yields

According to ANI, Dubai continues to be a desirable location for real estate investors because the emirate offers a mean rental yield of 7%. Which is strong when compared to cities like New York 2.8%, Singapore 2.5%, London 2.6%, Hong Kong 2.3%, and India 2.7 %.

Real estate investment creates opportunities for long-term residency and, consequently, opportunities for tax-free income in addition to the rental yield. Even though the UAE has always offered lucrative investment programs. Changes made to the residency rules in April increased the value of investments made there. Real estate investors can apply for a five-year renewable long-term residence visa with an investment of Dh2 million.

Increased Indian Investment

Indians have been one of the top 3 nationalities to purchase real estate in Dubai since 2004. Having done so between 2015 and 2021 for a total of Dh83.62 billion. The leading property investors in Dubai are also from the UK, Italy, and Russia.

With the signing of the CEPA agreement between the two nations, more property investment investments are anticipated. As business owners establish bases in the UAE to benefit from the deal’s advantages. A little over 12% of all registered rental agreements were commercial leases. When compared to July, this represented a rise of 21.34 %.

Another factor luring Indian real estate investors is the Reserve Bank of India’s Liberated Remittance Scheme (LRS). The program permits Indian residents to formally transfer $250,000 (Dh917500) to the UAE each fiscal year. Which can be used for real estate investments. According to CBRE, the emirate’s real estate market displayed a strong upward pattern this year. With a vast yield in transaction volume and value since 2009.

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