DUBAI: Dubai’s real estate market recorded 8,897 monthly sales transactions worth Dh22.75 billion, the highest volume reported for the month of June since the past nine years.
Property consultant Betterhomes reported that, in the first half of the year, there was a 60% surge in residential real estate transactions, with an 85% increase in the value of properties sold.
The most buyers were from India, the United Kingdom, Italy, Russia, France, Canada, the United Arab Emirates, Pakistan and Egypt tied in the same position, finally followed by Lebanon and China.
Compared to the same time period last year, the number of buyers from Russia increased about 164%, 18% for Britain, and 42% for France. In contrast, the numbers for India and Italy dropped 8% and 17% respectively.
Luxury real estate sales, in particular, were up 87% compared to the first half of 2021, with apartments accounting for 62% of all transactions.
Investors made up 68% of all buyers, an increase of 10% as compared to the year before.
Demand rose largely due to the geopolitical instability in Europe and mortgage buyers looking to invest before interest rate hikes. According to Reuters, more Russians were choosing to invest in Dubai’s real estate market for financial security, following Western sanctions on Moscow after the Ukraine invasion.
“The market has faced growing headwinds in the form of rising interest rates and a strengthening dollar, but has so far proven to be robust with little sign of slowing,” said Betterhomes.
After facing a slump in 2020, Dubai’s property market picked up momentum the next year with increased sales of luxury units, after the city lifted coronavirus restrictions more quickly than most others around the world.
However, S&P Global Ratings has stated that the recovery was fluctuating, and an oversupply of residential properties would affect prices in the longer run.