Market Insights: August
Transaction vols achieve an all-time high for August, with year-to-date sales showing a remarkable 42% YoY increase. Read our August Insights.
Total sales transactions surged by 8.1% month-on-month, hitting a record high of 12,134 sales in August. Residential transactions dominated, comprising 91.1% (11,053 sales), while hotel apartments (4.1%), office spaces (2.1%), and land sales (1.9%) led the commercial sector, according to the latest PM data.
Year-to-date, there were 85,060 transactions, marking a 41.9% increase from last year and a remarkable 125.4% surge from 2021. Monthly transactions in 2023 are outpacing previous records, potentially surpassing the 2009 annual record. Projections indicate over 120,000 sales by year-end, with the 2009 record possibly surpassed next month, giving an entire quarter for potential growth.
Off-plan transaction levels now represent their biggest market share in 3 years - since construction was affected by Covid. In August, we saw a significant uptick with 7,085 off-plan Oqood transactions, surging by 35% compared to the previous month and a remarkable 60.6% year-on-year. Currently, Oqood transactions make up 58.4% of the market, while Title Deed sales declined to 41.6%.
The AED 3 million to AED 5 million tier emerged as the standout performer, growing by 4.5% and reaching a total market share of 16.7%. This growth can be attributed to the success of two distinct projects: Rivana in The Valley, which achieved impressive sales in the high-end townhouse category at AED 984 per sq ft, and Bayview at Emaar Beachfront, where ultra-luxury apartment sales averaged AED 5,272 per sq ft. Conversely, the AED 10 million and above tier, which had reached an all-time high the previous month, decreased by 2.9%, falling to 2.5%.
When categorising the nine individual price tiers into three primary groups, investors can ascertain properties valued between AED 1 million and AED 3 million, representing the mid-tier, continue to account for the largest market share at 47% - a 3.6% m-o-m growth. The low-price tiers, featuring properties below AED 1 million, now constitute 29.3% of the market, marking a 2.8% decline from July. The top end of the market contracted 0.8% after July's gains, falling back to represent a 23.7% market share.
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