A surge of international investors is bolstering Dubai’s real estate market, with apartments driving sales and rentals in August despite the seasonal slowdown, according to real estate agency Allsopp & Allsopp.
The brokerage said demand from buyers in South Korea, South Africa, Australia and Canada helped push apartment sales value up 26 per cent year on year, while it recorded a stronger 31 per cent gain in its own transactions. Apartments accounted for 89 per cent of real estate deals by volume and 71 per cent by value, overtaking villas and townhouses.
Figures from the Dubai Land Department (DLD) showed total sales worth AED 40.45 billion ($11 billion) in August – down 22 per cent from July, but still 6 per cent higher than a year earlier. The average apartment price stood at AED 1.9 million according to DLD data, compared with AED 2.6 million reported by Allsopp & Allsopp.
Transactions for units under AED 1 million rose 25 per cent month on month, underscoring broad-based demand.
The rental market mirrored the sales surge, with apartment rental values rising 43 per cent and leasing transactions up 48 per cent compared with July. Downtown Dubai, Dubai Marina, Business Bay, Town Square and Jumeirah Lakes Towers were the most active areas. Nearly half of landlords (49 per cent) now accept four or more cheques, a sign of increasing tenant-friendly flexibility.
“Even in August, a month often associated with a lull in activity, Dubai’s apartment market has proven to be a cornerstone of the city’s real estate strength,” Allsopp & Allsopp said.
The agency noted that Dubai’s population recently surpassed 4 million, up 1.5 million over the last decade, cementing demand from both investors and residents.
