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The value of real estate in Dubai has fallen for the first time since the beginning of 2022

The value of real estate in Dubai has fallen for the first time since the beginning of 2022

In the first half of this year, record volumes of transactions were recorded in the Dubai real estate market. At the same time, the cost of properties grew from month to month.

But June reversed this trend when real estate prices fell by 0.31%. This was the first fall since the beginning of 2022.

Despite the decline in prices, many experts agree that this should not bother investors. The resilience of Dubai's real estate market in the face of rapidly rising interest rates, inflation and the strength of the dirham due to its peg to the US dollar continues to surprise.

The number of transactions in June reached 8,865, which is 38.8% more than in June last year. Residential real estate transactions accounted for 89.3% of the total number of transactions.

Buyers of commercial real estate mainly preferred hotel apartments (4.1%), land plots (2.7%) and office premises (2.6%).

The average rental yield rose to 6.3%. This is the highest figure since October 2019. The profitability of the owners of townhouses increased from 5.4% to 5.51%, and the profitability of apartment owners – from 6.7% to 6.82%.

Experts predict a further increase in rental yields in the coming months as sales prices slow down.

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