April 2022 Dubai Real Estate Market Update

Sales Transactions Highlights

• Second highest April on record in terms of sales volume and value

• 60 percent of the transactions were in the secondary market and 40 percent in

the off-plan market

• 46 percent increase in volume and 67 percent increase in value year-on-year

Following on from a record-breaking March, in April we saw a total of 7,009 sales transactions worth AED 18.3 billion according to the data available on the open data platform of Dubai Land Department. This is a 46 percent increase year-on-year for sales volume and a 67 percent increase for sales value when compared to April 2021. It was also the second highest April on record for sales volume and value, with April 2009 being the highest.

To break it down further, 60 percent of the sales transaction were in the secondary/ready market with 4,231 sales transactions worth AED 12.9 billion and 40 percent were in the off-plan market with 2,778 sales transactions worth AED 5.35 billion. There were 2,125 mortgage registrations in April worth AED 6.9 billion.

When we compare the data to March, we saw a 16.55 percent decrease in overall sales volume and 18.96 percent decrease in sales value month-on-month. The secondary/ready market saw a 16.27 percent decline in sales transactions and the off-plan market saw a 16.98 percent decline month-on-month.

Despite the upward trend we have seen over the last year, it will be interesting to see how the rest of the year will pan out as it will be difficult to continuously beat sales records month-on-month. Interest rates rose on Wednesday by 50 base points or .5 percent, and I expect to see another increase in June of 50 base points and at least 100 base point hike by the end of the year, which could bring the Fed Fund rate to 2.5 percent. This, coupled with high inflation and dealing with the various supply chain issues, will most likely cause the real estate market to cool down. With that said, each area and segment in Dubai is unique and has it’s own characteristics and trends, therefore each need to be analyzed separately. I expect for the luxury segment and prime, popular areas to continue to do well and prices to continue to rise.

Top areas for sales transactions in April

Apartments - Off-Plan Secondary/Ready

Mohammed Bin Rashid City Business Bay

Business Bay Dubai Marina

Dubai Creek Harbour (The Lagoons) Jumeirah Village Circle

Dubai Marina Palm Jumeirah

Jumeirah Village Circle International City

Villa/Townhouses

Off-Plan Secondary/Ready

Arabian Ranches 3 Dubai Hills Estate

Dubai Land Jumeirah Islands

The Valley Dubai Land

Tilal Al Ghaf Reem

Dubai Hills Estate Jumeirah Park

Rental Transactions Highlights

• April had 40 percent more EJARI registrations when compared to March

• There was a 11 percent increase in average annual rental amount for

apartments month-on-month

• There was a four percent increase in average annual rental amount for

villa/townhouses month-on-month

In April, there was a total of 59,197 rental EJARI registrations which is a 40 percent increase in the number of contracts when compared to March 2022. In addition, 30,304 EJARI registrations in April were for new contracts and 28,893 were for renewals. Of those total registrations, 45,301 contracts were for residential properties and 13,383 were for commercial units while 513 were for other.

Within the residential sector, 36,583 rental contracts were for apartments with an average annual rental amount of AED 58,857 which is an 11 percent increase month-on-month in average annual rental amount when compared to March. There were 4,064 contracts for villa/townhouses with an average annual rental amount of AED 153,356 which is a four percent increase month-on-month in average rental amount when compared to March.

As inflation and interest rates continue to rise, we will most likely continue to see rents increase throughout the year, especially for high demand areas and units. The population in Dubai recently reached just over 3.5 million and this will only increase due to the various government initiatives enticing talent and businesses to move into this city. This will have an impact on prices as most new residents will rent rather than buy right away. I expect short term rentals will also continue to thrive.

Top areas for rentals in April

Apartments Villa/Townhouse

International City International City

Business Bay Jabal Ali (Al Furjan, Discovery Gardens)

Jabal Ali (Al Furjan, Discovery Gardens) Mirdiff

Silicon Oasis Jumeriah Village Circle

Jumeriah Village Circle Jumeriah Park