The first half of the year saw residential real estate transaction volumes increase by 60% with an 85% increase in the value of properties sold, property consultancy Betterhomes said in a report.
The main buyers were India, the United Kingdom, Italy, Russia and France, in that order, followed by Canada, the United Arab Emirates, Pakistan and Egypt in eighth place, Lebanon and China.
Demand has been boosted by geopolitical instability in Europe and mortgage buyers looking to anticipate well-telegraphed interest rate hikes as central banks tackle inflation, Betterhomes said.
Reuters reported earlier this year that the Russians were pumping money into Dubai real estate as they seek financial refuge from Western sanctions on Moscow over its invasion of Ukraine.
“The market has faced growing headwinds in the form of rising interest rates and a strengthening dollar, but has so far proven robust with few signs of slowing down,” he said. said Betterhomes.
In the first half of the year, a record 37,762 units were sold, he said, citing data from the Dubai Land Department. Total transactions in the residential real estate market amounted to nearly 89 billion dirhams ($24.23 billion), he added.
Dubai’s property market began to recover from the severe 2020 recession early last year, with buyers snapping up luxury units as the emirate eased pandemic restrictions faster than most cities of the world.
However, S&P Global Ratings said in October that Dubai’s real estate recovery was fragile and uneven, and that an oversupply of residential properties would put pressure on prices over the long term.
Luxury property transactions were up 87% from the first half of last year, while apartments accounted for 62% of all transactions, Betterhomes said.
Investors led sales, accounting for 68% of all buyers, up 10% from a year earlier.