The momentum of the market has not lost its pace with more than 4,000 sales and about AED 7.71 billion ($2.1 billion) of mortgages recorded during one week as the latest official data of the Dubai Land Department shows.
In 2022, overall Dubai real estate sales increased to over AED 21.62 billion ($5.9 billion) between 4 August and 10 August 2022, and 4,154 sales were completed. The increase highlights increased levels of confidence in the emirate property by the investors and end-users.
At the same time, the week has also experienced AED 7.71 billion ($2.1 billion) of mortgage transactions, which indicate the growing dependency of the sector on financing. A busy mortgage market indicates a healthy lending environment and reflects good buyer confidence by both residents and long-term investors looking to take advantage of the growth opportunities in Dubai.
The continued increase in the amount of sales transactions and mortgages perpetuates the post-pandemic boom that has been synonymous with the last couple of years. Analysts cite a set of factors that are behind this momentum including the strategic visa reforms, its strong infrastructure and its worldwide fame as being one of the centers of tourism, business and luxury living.
The wide range of properties covered in these transactions also testifies of a balanced market. Among the properties transferred was a high-end villa, a water-front apartment, mid-market townhouse, and a commercial one, which meant that the demand was spread over various segments. This kind of balanced structure supports sustainable growth and reduces the risk of overheating with a single segment.
These factors combined with continued inflow of residents, foreign investors and expected opening of high-profile projects across the city are projected by professional analysts to keep the current level of real-estate transactions going through the rest of 2022. As a reaction, developers are launching new supply to meet luxury and low end market needs in order to cater to the various needs of the market.
The ability of Dubai to maintain both high levels of activity solidifies its position as one of the most vibrant property markets in the globe. In the backdrop of the current global economic struggles, there remains to be an aspect of strength and flexibility within the emirate that makes it a prototype of real-estate based development.
As Dubai continues to consolidate its status as an investment and property market between both investors and market analysts, the development of the property sector in the coming months will continue to remain under the microscope. Present signs are clear: that confidence in Dubai real estate has been reborn and, what is more, it is gaining momentum.
Source – https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-sector-recorded-5-9bn-of-transactions-last-week-including-2-1bn-of-mortgages
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