How did Dubai’s property market perform in May 2022 with higher mortgages on the horizon?

Compared to May 2021, transaction figures rose 51.5 percent in terms of sales volume, and 65.4 percent in terms of sales value

Dubai’s real estate market witnessed 6,651 real estate transactions worth $4.98 billion (AED 18.3 billion) in May 2022, marking the highest figures for the month of May in 13 years in terms of real estate sales volume and value.

The transaction figures reported in May 2022 also marks a 51.5 percent increase year-on-year for sales volume and a 65.4 percent increase for sales value compared to May 2021.

The director of Data and Digital Transformation at Allsopp & Allsopp, Lynnette Sacchetto, said: “The Dubai real estate market continues to consistently show steady growth month-on-month when compared to last year. Also, just like last month, we saw a repeat in trend with May being the second-highest on record for sales volume and value, with May 2009 being the highest.

“To break it down further, 58.5 percent of the sales transactions were in the secondary/ready market with 3,894 sales transactions worth AED 12.1 billion, and 41.5 percent were in the off-plan market with 2,757 sales transactions worth AED 6.18 billion.”

The data revealed is part of a report for the month of May, which includes Dubai Land Department’s (DLD) open data as well as data revealed by Allsopp & Allsopp.

When the data is compared to April 2022, there was a 5.11 percent decrease in overall sales volume and 0.1 percent decrease in sales value month-on-month.

The secondary Dubai property market saw a 7.97 percent decline in sales transactions with the off-plan market seeing a 0.7 percent decline month-on-month.

Sacchetto added: “As the months progress, we still haven’t seen the effect of rising interest rates and inflation in the real estate market. Petrol prices rose by 13 percent in June, but yet the residential sales market still seems to be unscathed. Sales volumes dip marginally, and sales prices still hold strong and even grow in high-demand areas and segments.

“The off-plan market continues to thrive with high demand and new launches continuing to be released. With the summer months coming upon us, it will be interesting to see how travel trends, both outbound and inbound, will affect the Dubai real estate market.”

To enhance the market data with proprietary data, the Allsopp & Allsopp Group, leaders in the Dubai real estate industry, has over 13 years of historical data as well as real-time data.

Lewis Allsopp, CEO of Allsopp & Allsopp says “Our data shows the trends and a true pulse of what is happening in the real estate market today, from the front line. Following on from the trends of the year, May was also a very busy month for us and sales value performance grew in Allsopp & Allsopp by 57 percent year-on-year.

“This could be the result of buyers purchasing properties before we see the increases in interest rates, which will have an effect on mortgages. We must also take into consideration the appeal of Dubai on a global scale. The city has consistently attracted overseas buyers but now more than ever, we see a lot of interest from buyers who are looking for properties in the city has not yet made the move to the city or have been here for only a short period of time.”

The top three areas for May sales were Dubai Marina, Downtown Dubai and The Springs and 52 percent of Allsopp & Allsopp buyers were financed while 34 percent were cash purchases and the rest opted for developer incentives in the off-plan segment.

(Source: ArabianBusiness YouTube channel)

Our Chairman has Wide Experience in Mortgage Finance Advisory

March 2012 till April 2021.

Chairman and Managing Director, CEO- Taamir Mortgage Finance Company- “Al Oula”

Chairman and CEO- Taamir Real Estate Investment Company – Al Oula

Chairman and Chairman of Executive Committee- Taamir Leasing Company- Al Oula

Board Member and Chairman of the Investment Committee- Iskan Insurance Company

The Company is the largest government owned real estate finance company in Egypt with 40% market share and a paid up capital of LE 400 million and clients of 23 thousand. Has totally financially restructured this company increasing its Return on Equity from 5% to 12% in 3 years and turning around its negative working capital of LE 360 million to a surplus of LE 200 million as well as decreasing non performing loans from 25% to 5% and creating new departments and training all staff to achieve this goal. Due to the success of financial turnaround, he has created two new subsidiaries; the first is a Leasing Company with a paid up capital of LE 70 million and the second is a real estate development company with a paid up capital of LE 25 million. Both companies have been operational since late 2014 and the Leasing Company is now ranked the seventh company out of 33 active leasing companies and has around 70 % of its portfolio in the real estate sector. It contributes around 35% of the consolidated net income. The Real Estate Investment Company acts as an investor in the real estate market and has a return on investement of around 25%. As such engaged in the Real estate sector as investor and as financier for the real estate companies as well as financing the individual owners of the units through these three complimentary companies. As a result of the success of creating these companies, he has increased the paid up capital of the company to be LE 734 million and expanded the three companies to new horizons.

Chairman & Managing Director-Vice Chairman & Managing Director ( Government wholly owned)

Appointed by the Prime Minister of Egypt to be in charge of reorganizing and managing the main business centers of the Egypt Arab Land Bank which is the largest bank to finance real estate projects in Egypt.. Due  to his success in the assignment the Prime Minister appointed him sixth month later to be the Chairman and Managing Director of UBE ( 48% owned by the Government). In Land Bank acted as  Chairman of the International, Investment, Treasury and Credit Committees of the bank. Actively engaged with the Central Banks supervising the International branches. In charge of managing and reorganizing the bank’s own investments in 32 companies. In charge of managing and reorganizing the real estate credit lending portfolio of the bank of around LE 18 billion including coming up with innovative ideas for restructuring. In charge of managing and reorganizing the treasury function of the bank with major funding limitations. Preparing the bank for the issuance of long term bonds for LE 600 million and the securiitization of its portfolio.

At UBE, in charge of re-organizing the bank mainly along the same above mentioned lines. As Chairman and CEO of the bank provided much needed leadership,new strategy and direction for the bank. Initiated nine new departments including retail, private and investment banking. These departments were extremely succesfull as it initiated new business lines in retail banking products and branches. Re-engineered the credit process of the bank and expanded the legal department with the objective of improving the collaterals of the bank. In six months’ time, dramatic improvement in the bank financials have become apparent.

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