Dubai's property market has undergone a remarkable resurgence, culminating in record-breaking sales transactions during May. This unprecedented surge surpasses the previous zenith established in April 2009 by a remarkable 20%, signifying a robust and invigorated sector.
The Growth?
Fueling this exponential growth is a revitalized mortgage market, experiencing a near 58% upswing compared to the prior month. This surge propels mortgage activity to the second-highest level ever documented, underscoring the market's accessibility and robust financial backing.
Data gleaned from Property Monitor, a subsidiary of Cavendish Maxwell Group, paints a vivid picture of Dubai's resurgent residential property sector. The sheer volume of transactions conducted in May stands as a testament to this revitalization.
Experts Opinion
Industry experts, such as Zhann Jochinke, Director of Market Intelligence and Research at Cavendish Maxwell, anticipate sustained momentum. He posits that as the second quarter draws to a close and summer approaches, transactional activity will likely remain robust, potentially defying historical trends associated with this period's customary lull.
While price growth has exhibited a more measured pace compared to the earlier months of March and April, it remains undeniably impressive. The Dynamic Price Index reflects a 0.69% increase over the month, further solidifying the market's strength. Notably, property values currently reside at unparalleled highs, surpassing the previous peak set in September 2014 by a significant 10.25%.
Best Developers?
A noteworthy facet of this resurgence lies in the burgeoning off-plan market. Transactions involving off-plan properties constituted a staggering 61.8% of the overall market share in May. When adjusted for registration types, this figure is estimated to climb even higher, reaching an impressive 66.7%. Both the off-plan and secondary markets witnessed a surge of approximately 48% compared to April's figures.
Emaar Properties emerged as the undisputed champion in the off-plan sales arena, solidifying its position as a market leader. Sobha and Azizi Development also exhibited stellar performance, placing them amongst the industry's top contenders.
Price trends revealed the most significant growth within the AED2-3 million bracket. This phenomenon is likely fueled by highly anticipated projects such as Lillia in Dubai Hills and Sobha One in Dubai.
Mortgage borrowing witnessed a remarkable 57.9% increase when compared to April's figures. This surge signifies the second-highest monthly total ever recorded, highlighting the continued accessibility of financing despite rising interest rates. This trend underscores the unwavering confidence of financial institutions in the long-term viability of Dubai's real estate sector.
Looking for Beachfront Property in Dubai?
Overall, Dubai's property market exhibits undeniable signs of rejuvenation. Record-breaking sales transactions, a resurgent mortgage market, and robust investor confidence paint a picture of a thriving and dynamic sector poised for continued growth. If you're interested in latest listings and developments, feel free to contact us. We can help you find your perfect property in Dubai.