Dubai: The third quarter of 2021 has been the best Q3 recorded in the history of Dubai real estate in terms of sales transaction value and sales transaction volume since 2009, according to data from real estate portal Property Finder.
The third quarter of 2021 when compared to the same period in 2020 showed an increase of 85.36 per cent in sales transaction volume and an increase of 135.42 per cent in value.
When compared to pre-covid times such as Q3 2019, Q3 2021 showed an increase of 64.51 per cent in volume and an increase of 138.81 percent in value.
In Q3 2021, 56.6 per cent of all transactions were for secondary/ready properties and 43.38 per cent were for off-plan properties.
In terms of volume of transactions, the off-plan market transacted 6,909 properties worth a total of Dh13.5 billion and the secondary market transacted 9,017 properties worth a total of Dh28.85 billion.
Comparing this to Q2 2021, the volume of off-plan transactions increased by 14.67 per cent and the secondary/ready property sales transactions decreased 6.02 per cent. The value of off plan sales transactions increased by 47.11 per cent and the value of secondary sales transactions increased by 4.24 per cent.
“To date, off-plan sales had the highest value of sales transactions the Dubai Real estate market has seen in over eight years (since December 2013). Off-plan sales started to increase considerably in 2021 and the amount of sales transactions between secondary and off-plan are now about 50/50. This is evident that investors see the value in investing in the future of Dubai. In addition, developers started launching new projects in 2021 and investor appetite has been strong,” said Lynnette Sacchetto, Director of Research and Data at Property Finder.
According to proprietary Property Finder demand data, the top areas for secondary sales transactions for villas/townhouses in Q3 2021 were Damac Hills 2, Dubai Hills Estate, Arabian Ranches, Nad Al Sheba and The Springs. As for apartments for the same period, the top areas of interest were Jumeirah Lake Towers, Dubai Marina, Meydan, Jumeirah Village Circle and Downtown Dubai.
“The prices of villa/townhouses continue to rise due to very high demand and low supply and we are only expecting 6,000 new units to be completed by the end of 2021, therefore this doesn’t add much of a dent to the supply equation,” said Sacchetto.
The top areas for off-plan sales transactions for villas/townhouses in Q3 2021 were Arabian Ranches 3, Dubai Land, Tilal Al Ghaf, Dubai South and The Valley. As for apartments for the same period, the top areas of interest were Business Bay, Dubai Marina, Jumeirah Village Circle, Downtown Dubai and Jumeirah Lake Towers.