Dubai Career Diary

A 20% Surge in Total Sales Transactions

The Dubai residential property market witnessed unprecedented activity in May, with total sales transactions reaching 17,139, surpassing the previous high set in April 2009 by more than 20 percent.

Mortgage Activity Rebounds

Mortgage borrowing rose by a remarkable 57.9% month-on-month, reaching the second-highest level of all time. This indicates that financing remains readily available despite rising interest rates.

Price Growth Moderates

Price growth returned to a more moderate pace, with the Dynamic Price Index increasing 0.69% over the month. Despite this, property values remain at record highs, standing 10.25% above the previous peak in September 2014.

Off-Plan Sales Dominate

By completion status, off-plan transactions represented 61.8% of the market in May. Once adjusted for registration types, the true off-plan market share is estimated to be 66.7%. Emaar Properties headed the league table for off-plan sales, with Sobha and Azizi Development also among the top performers.

Segmentation of Sales

Price trends showed the fastest growth in the AED2-3 million bracket, fuelled by projects like Lillia in Dubai Hills and Sobha One in Dubai.

Expert Insights

“As we edge closer to the end of Q2 and with the summer months ahead, we anticipate that the market will continue with high transactional activity and experience little to no negative impact of what has somewhat historically been a slower period,” said Zhann Jochinke, Director of Market Intelligence and Research at Cavendish Maxwell.