According to a report on the Dubai real estate market published by Betterhomes, the end users in the market have shown a substantial increase.
In the third quarter alone, their percentage went from 45% to 52%, which has been credited to rising rents, as well as the desire to establish foundations in Dubai for the long term.
As a result, renters have entered the sales market, and the demand for mortgages has also gone up.
Moreover, finance buyers currently account for 44% of all transactions being carried out, despite the increase in rates.
In the third quarter of the current year, the real estate market in the city recorded no less than 28,249 transactions.
This figure was a 4% spike, as compared to the second quarter of the same year. Moreover, transactions in the third quarter were 23% higher than the figure recorded in the corresponding period of the previous year.
As per the report, this surge was driven primarily by a 34% increase in townhouse and villa transactions. Meanwhile, apartment transactions account for a 4% increase.
In addition, the real estate market continued to boom due to a busy period in the summers, which led to record transaction volumes, specifically a year-on-year increase of 22%.
It was further revealed that property prices in a number of important areas reported an increase. Consequently, the total value of transactions showed a 49% spike.
Along with the ongoing growth being experienced in the real estate market in Dubai, the government has announced several major infrastructure projects to further boost the market.
This includes the relaunch of Palm Jebel Ali, as well as the expansion of Hessa Street.
Furthermore, the development of such projects is seen as the commitment of the city to achieve its formerly forecasted plans for expansion for the year 2040.
Where the value of properties is concerned, the market recorded Dh 79.2 billion in the third quarter.
This figure was 13% higher than the number recorded in the previous quarter of the same year and 49% greater than the figure reported in the third quarter of 2022.
However, the total value of apartment sales went down by 15% in the secondary market and 6% lower in the off-plan segment. Consequently, the overall decrease registered was 9%.
One of the most crucial findings from the published report was the significant shift in demand from end-users for townhouses and villas.
The report went on to indicate that quarterly transactions went up by 38%, while the total value of transactions for secondary market townhouses and villas surged by 55%.
Furthermore, end-users currently account for over 50% of total transactions, representing a substantial increase from 45%.
This shift is primarily being driven by the rising rental costs and the need for greater security.
On the other hand, the secondary market has shown a decrease in apartment transactions and is forecasted to continue with a declining trend.