Dubai Sees Over a Billion Dollars of Real Estate Transactions in a Single Day
Over a billion dollars of real estate transactions took place in a single day in Dubai, on Thursday 30th June 2022. There were 659 transactions in total, comprised of 75 land plots. 488 villas and 96 mortgage transactions, with a combined value of USD 1.06 billion, or AED 3.9 billion.
According to Dubai Land Department, the 96 mortgage transactions made on this date equaled AED 91.24 million, along with 563 sales deals with a total value of AED 3.46 billion. This record-breaking day demonstrates the robustness of the recovery of the property market in Dubai following the pandemic.
Ryan Mahoney of Dubai, UAE, has worked within the property sector for many years and established several companies based around real estate and proptech.
13-Year High for Dubai Real Estate Transactions
The period from January to May 2022 saw Dubai experiencing 13-year highs in both property transaction values and rents. The 30,903 residential real estate transactions completed during this time represents the highest figure for the first five months of the year since 2009.
May alone saw a year-on-year increase of almost a third in terms of the number of property transactions. Rents have also seen a dramatic increase, with most tenants paying over $7,500 per month for an apartment in Dubai. This represents an increase of around 18.3% on the year. According to Statista, real estate accounts for around 5% of the GDP of the United Arab Emirates.
You can discover some of the reasons why Dubai is a popular destination for expats in the PDF attachment to this post.
Rent Payments Go Digital
Another change tenants in Dubai are experiencing is the digitalization of rent payments. Many renters were previously having to pay by cheque. A new collaboration between the bank Emirates NBD and the Dubai Land Department means that tenants will now be able to automate rent payments from their bank accounts. This digitalization of services forms part of the Dubai Paperless Strategy, with the aim of saving over 130,000 trees per year. Foreign investors will also be able to open accounts with Emirates NBD to manage rent collection from properties purchased in the Emirate.
Some of Dubai’s most expensive real estate transactions of 2021 can be seen in the infographic attachment.
