Dubai's real estate market recorded 3,308 resale transactions worth AED15.39 billion ($4.19 billion) in March, delivering a net gain of AED4.6 billion for long-term investors.

A market analysis issued today by fäm Properties also revealed that 36,658 residential tenancy contracts worth AED3.16 billion were registered during the month, two-thirds of which were renewals.

Data from DXBinteract, meanwhile, showed that average rents for new residential contracts rose 7% year-on-year in March, led by the villa segment where rents surged 15.9%.

"The first two months of the year were very strong, and despite the current regional tensions, March has produced some genuinely positive results," said Firas Al Msaddi, CEO of fäm Properties.

"Q2 transaction volumes will give us a clearer picture of any sustained impact on the market from geopolitical events, but we are continuing to see strong interest in Dubai real estate, particularly from end users and long-term investors.”

"What is equally telling is the rental picture,” added Al Msaddi. “The volume of tenancy renewals alongside strong new contract numbers shows that Dubai remains the place where people are choosing to live and build their lives."

In the secondary market last month, ready properties accounted for 2,444 transactions worth AED9.01 billion, off-plan resales generated 760 transactions worth AED3.23 billion, and plot sales added 104 transactions worth AED3.15 billion.

Overall, 89.5% of resale transactions were profitable with a median gain of 25.0%. Villa transactions were the strongest performer with a 97.0% profitability rate and a median gain of 60%, while plot sellers achieved a median gain of 99%.

Rental activity in March was dominated by apartments which accounted for 33,500 registered tenancy contracts worth AED 2.40 billion, 22,700 of these renewals.

Villas totalled 1,870 contracts worth AED 537.1 million, including 1,200 renewals, while townhouses accounted for 1,288 contracts worth AED219.4 million, 610 of those renewals.

Commercial rental activity added a further 16,600 contracts worth AED1.24 billion, comprising 10,600 new tenancy agreements valued at AED477.6 million and 6,000 renewals worth AED763 million.

Average rents on new residential contracts rose 7.0% year-on-year in March to AED106,000, with villa rents surging 15.9% to AED387,000 annually and apartments up 5.0% to AED84,000. New townhouse rents were the only segment to edge lower, slipping 1.7%. Renewal rents told a similar story, rising 4.9% overall, with villas up by 14.5%. - TradeArabia News Service