Dubai Exchanges $517.2 Million in Property for Super Tuesday

Hundreds of real estate transactions completed in a single day brought the total for Tuesday to nearly AED2 billion. 

On Tuesday, the Dubai Land Department (DLD) reported 474 sales transactions worth AED1.52 billion, 441 mortgage transactions worth AED441.56 million, and 11 gift transactions worth AED27.4 million. 

376 villas and apartments will cost AED849.54 million, while 98 land plots will cost AED671.55 million. Today's transactions totaled more than AED1.9 billion, with 57 villas, apartments, and 18 land plots worth a total of AED321.33 million. 

Understanding Real Estate Deals in Dubai 

Super Tuesday follows Dubai's recent breaking of all real estate transaction records in a single month. 

The total number of residential transactions in Dubai reached 5,538 in February 2022, up 58% year on year, according to CBRE's latest Dubai Residential Market Snapshot report for March 2022. Off-plan sales increased by 87.7%, while secondary market sales increased by 41.6%. 

In February 2022, there were 11,071 transactions, the most in the first two months of the year. Then, prices increased by 10.7%. There is also an expectation regarding tightening payment terms as well as the rise of post-promotion mortgage rates.

Despite this, residential transaction activity in Dubai reached an all-time high of 11,071 transactions in the first two months of the year. 

The surge in 2022 transactions follows a massive influx of first-time buyers in 2021. According to Mortgage Finders' second mortgage market report for 2021, more than 80% of mortgage borrowers in the UAE were first-time buyers. 

The UAE Central Bank's March 2020 initiative, which reduced the required down payment for first-time buyers to 20% for expats and 15% for nationals, was cited in the report. 

Furthermore, according to Dubai's Land Department data, the mortgage industry had a record-breaking year in 2021, with transaction values surpassing 2017 highs by 26%. 

2021 Dubai real estate statistics 

52,415 investors purchased 72,207 new homes in the emirate. In 2021, the market saw 84,772 transactions worth AED 300 billion. 

Real estate transactions increased by 66% last year, while their value increased by 71%, according to the Dubai Land Department's annual transaction report.

According to experts, the global pandemic aided the UAE's development. The government has successfully defeated COVID-19. While demand is decreasing in other countries, it is increasing in the UAE. According to experts, over the last two years, investors have preferred large properties with numerous amenities in order to maintain a high standard of living. Premium real estate prices are rising as a result of increased demand. This category includes Arabian Ranches, Palm Jumeirah, and Emirates Hills. 

Transactions totaling AED 28,6 billion were recorded at Dubai Marina, followed by Palm Jumeirah (AED 26,6 billion). 

The 2022 Forecast

Experts predict that the real estate boom will last until 2022. Why did the market rebound and set new highs in 2021? 

Property sales totaled AED 177 billion in the previous year, representing an 88% increase over 2020. Housing prices are currently rising, which benefits sellers by allowing them to sell their property at the price they want without offering a discount to prospective buyers. 

The majority of experts predict that real estate prices will continue to rise in 2022. Experts predict that this year will set new records. And there are three reasons why this is so: 

• There is limited supply (particularly in prestigious areas), low mortgage rates, and foreign investor interest.
• Despite the global financial crisis, Dubai remains a safe haven for wealthy individuals and expats. 
• Simultaneously, the government is constantly proposing reforms aimed at making moving to the UAE and obtaining a residency permit easier.

Conclusion

It’s no secret that Dubai is one of the esteemed locations for property investments and real estate expansion. With the market’s great market records and promising future potential, it’s safe to say that this is the place for wealth-building and business relations. Don’t let the numbers intimidate you–get a taste of Dubai real estate before it’s too late.

If you’re looking to buy property in Dubai, Dacha Real Estate leads the market through top-of-the-line client service, world-class listings, and overall excellent management. Give us a call today!