Dubai’s real estate market posted its best month in about a decade, with the total volume of deals surging by more than 50 percent year-on-year in May, according to the latest data. 

The emirate, which has recently seen an influx of private capital from millionaires on the move, last month recorded 18.4 billion dirhams ($5 billion) worth of transactions, which totalled 6,652, the highest for the month of May in the past decade. 

The sales transactions were up 51.6 percent in terms of volume and 66.14 percent in terms of value when compared to the previous year, according to the Dubai Land Department’s (DLD) sales price and rental performance index Mo’asher. 

The property market has been witnessing strong demand from buyers in the country and abroad. Competitive prices and mortgage offerings, high return on investment, coupled with positive economic growth and government’s effective management of the COVID-19 pandemic, have helped stir up interest from buyers with high disposable incomes. 

According to Henley & Partners, Dubai and the rest of the UAE are attracting a growing number of millionaires. This year alone, around 4,000 high-net-worth individuals (HNWIs) are expected to move to the UAE. 

Surpassing pre-pandemic levels 

Mo’asher data showed that sales transactions in Dubai last month continued to eclipse the average monthly deals last year. 

The transactions were led by the secondary market, which accounted for 58.55 percent of the volume and 66.29 percent of total value. 

In terms of units, however, buyers appeared to lean towards acquiring apartments, which accounted for 82.34 percent of total deals for both ready and off-plan properties. Villas and townhouses, on the other hand, represented 17.66 percent of total transactions. 

Rental market, areas in demand 

Within the rental segment of the market, demand increased marginally, with the total number of leases growing by 2.1 percent year-on-year. 

More tenants also renewed their contracts, up by 4.4 percent in May compared to the first five months. Leases for commercial spaces went up by 8.47 percent during the same period 

Based on Ejari registrations, the most rented properties are located in Jabal Ali First, which recorded 1,398 contracts. 

Al Warsan came in as the second-most popular location, registering 1,285 Ejari registrations, followed by Business Bay (1,029), Al Barsha South Fourth (958), Nadd Hessa (957), Marsa Dubai (946), Muhaisanah Fourth (934), Al Nahda Second (893), Al Thanyah Fifth (798) and Al Karama (776). 

For buyers, the most popular locations are Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, Jumeirah Village Circle and Jumeirah Beach Residence, which are the most searched locations for properties on sale. 

(Reporting by Cleofe Maceda; editing by Seban Scaria)