The total value of real estate sales transactions in Dubai during the third quarter of the year is the best recorded in the Emirate’s history, according to a property advisory firm. The volume of deals made during the quarter was the highest since the same period 2009.
Property Finder recorded that from July to the end of September of this year the volume of sales transactions in Dubai hit 15,926, with a total value worth AED 42.35 billion ($11.5 billion).
When compared to the same period of 2020 there was an increase of 85.36 percent in sales transaction volume and an increase of 135.42 percent in value. To put this in perspective, when compared to pre-COVID periods, such as Q3 2019, this year’s third quarter showed an increase of 64.51 percent in volume and an increase of 138.81 percent in value.
In Q3 2021, 56.6 percent of all transactions were for secondary sale properties, and 43.38 percent for off-plan properties.The off-plan market transacted 6,909 properties worth a total of AED 13.5 billion ($3.7 billion) and the secondary market transacted 9,017 properties worth a total of AED 28.85 billion ($7.9 billion).
Property Finder’s data noted that Q3 saw a surge in off-plan sales transactions.
Lynnette Sacchetto, Director of Research and Data at Property Finder commented that “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.”
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.
Sacchetto added: “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.”
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.