Mortgage financing increased 44% during the third quarter
Mortgage financing increased by up to 44% during the third quarter of this year, highlighting the strength of Dubai’s real estate industry. According to a report by BetterHomes, the maturity of Dubai real estate is due to new buyers entering the market. It is reported that the percentage of buyers also increased from 45% to 52%. Additionally, 28,249 transactions took place in the third quarter, an increase of 4% from the second quarter and an increase of 23% from 2022. Villa and townhouse transactions rose 34%, while apartment prices fell 4%.
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The report said that Dh79.3 billion worth of properties were sold in the third quarter (Q3), up 13% from the second quarter of 2022 (Q2) and 49% from the third quarter of 2022. Apartment sales also fell. There was a 15% decline in the secondary market and a 6% decline in the off-plan sector, resulting in a 9% decline overall.
For villas and townhouses, sales prices increased by 54%. This was followed by a 55% increase in secondary market sales, accounting for 80% of the villa market, with off-plan transactions of 48%. This shows a positive trend in the villa market.
After three repeated declines in villa and townhouse transactions on the secondary market, they recorded a surge of 48% in the third quarter, while off-plan transactions fell 0.45% in the third quarter, accounting for 49% of total sales value. Secondary market transactions surged 8%.
It is relevant to mention in the report that the demand for villas has increased. This was followed by a 38% increase in quarterly transactions and a 55% surge in total transaction value. Buyers now make up 52% of all transactions, an increase of 45%. This change is the result of rising rental charges and improved security demands.
On the other hand, apartment sales decreased by 9%, secondary market sales decreased by 15%, and off-plan sales decreased by 6%. Details in the report stated that the number of end users in the third quarter reached its highest since the pandemic in 2021, bringing about a transformation in Dubai real estate
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