Morgan Stanley Bank said that the real estate market in Dubai maintained its strong performance and continued to rise, as prices continued to rise since the beginning of this year and are currently 4.2% higher than the highest market levels recorded in October 2014.
Morgan Stanley said in its monthly report issued this May, “UAE Residential Property Tracker”, a copy of which was obtained by Al-Bayan, that real estate prices in Dubai continue to grow, with an increase of +1.8% in April compared to the previous month, and are currently +4.2% higher than October 2014 levels.
In detail, the report said that residential real estate prices in Dubai rose by +1.8% on a monthly basis in April, +20.7% on an annual basis, and +8% since the beginning of the year to 1,549 dirhams per square foot, and are now +4.2% higher than the levels recorded in October 2014.
The report stated that the growth in real estate prices in April was driven by both villas, which grew by +1.9% on a monthly basis and +22% on a yearly basis, and apartments, which grew by +1.8% on a monthly basis and +20.4% on a yearly basis, which both villas (+24.5%) and apartments (1.2%) are now above October 2014 levels.
The report continued, “April witnessed a slight decline in transaction levels, as approximately 13,900 real estate transactions were recorded, but this is due to the impact of seasonal factors due to the Eid holiday.”
The report indicated that total residential rental revenues as of April amounted to 7.24%, according to the Redin Foundation, which specializes in data analysis, recording a decline of -4 basis points on a monthly basis and stability on an annual basis.
According to the report, levels of cash payment (cash sales) constituted 84% of transactions, which is considered the highest during the past 12 months, compared to a 16% share for mortgages. The same applies to off-plan transactions (sales), which constituted 52% of the transactions recorded in April, which is the highest during the past 12 months, while secondary market (ready-made) sales represented 48% of the total in April.