The Kingsley Monthly Forecast (KMF): March comes in like a lion; UAE’s property market will continue to roar
Kingsley Properties’ Pamul Sharma predicts a bullish market
Dubai’s Property Market is not just on the rise, it in fact is roaring. And if proof of the pudding, as they say, is in the numbers then here you go – a tremendous January that saw 5780 transactions worth Dh16.55b followed by a February that continued the rally with 6348 transactions worth Dh16.35b despite mildly adverse conditions due to the tightening of the payment plan offerings. But what’s next?
Dubai-based Real estate consultants at Kingsley Properties anticipate March, also the final month of Expo 2020 Dubai, the greatest show on Earth, will see an even more strengthened performance. And here’s why.
Secondary market transactions beat the primary market
According to Dubai Land Department (DLD) transactions, existing properties consistently outperformed off-plan projects in February and that sheds light on two trends:
- Ready apartments (Residential and hotel) came out ahead of townhouses and villas
- While the number of transactions in February were greater, the average ticket size ranged between low to medium
This is likely due to favourable lending rates many buyers were keen to leverage.
Kingsley’s takeaways from Dubai’s Residential Rental Performance Index (RRPI)
Last month the Dubai Land Department (DLD) launched the first-ever Residential Rental Performance Index (RRPI) for Dubai in cooperation with Property Finder. While February’s index is yet to be released, several insights could be gleaned from January’s index. One remarkable aspect was the apartment monthly indices edging out the indices for villas and townhouses.
In addition to this, the highest searched areas were Dubai Marina followed by downtown Dubai and Business Bay.
History favors Dubai and how?
2021’s post pandemic market performance was historic, with average home prices and rents increasing by 9.3 per cent and 8.3 per cent, respectively. Last year’s price growth was also the highest since January 2015, while rents continued to soar, thanks to strong demand from buyers and tenants.
It is evident that the pandemic blues are slowing and securely fading into a memory of the past.
March is ready to roar, despite some headwinds
One of the major updates to Dubai’s ecosystem is the easing of covid restrictions. This is bound to contribute to significant performance along with the transformation of Expo 2020 Dubai’s site into a city.
And the bold prediction for the month ahead by Pamul Sharma, Vice President – Kingsley Properties?
“The trends will continue for the next month for ready, primary, and secondary units, mainly under the ticket size of Dh2 million,” he says while also predicting an tightening of lending rates in the near future.
Join us around the same time for our next episode of the Kingsley Monthly Forecast.
© Kingsley 2022
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