Dubai Property sees V-shaped Rebound
Property transactions in Dubai recorded a strong rebound in the third quarter compared to the previous quarter, signalling that the real estate market is undergoing a full V-shaped recovery, an industry report said.
According to Data Finder, the real estate insights and data platform under the Property Finder group, the third quarter registered a total of 8,727 property sales transactions worth Dh18.376 billion, up 55.76 per cent in volume and 67.71 per cent in value compared to the second quarter. This brings the overall total for sales transactions this year to 24,573 with a total value of Dh49.39 billion.
Lynnette Abad, director of research and data at Property Finder, said there had been quite an array of interesting dynamics in the Dubai real estate market these past few months.
"We have low supply in prime areas where demand is high which has caused multiple buyers and bids on properties," she said.
Abad said sale prices in prime areas have risen while rents have consistently stayed the same. "Our broker clients are having all time record breaking months. Needless to say, pent up demand, best ever mortgage rates and lower down payments have been the perfect combination to stimulate the Dubai real estate market."
In September, the real estate sector witnessed 3,853 property sales transactions which were 56.56 per cent higher than the month of August and 59.68 per cent higher than the month of July.
The total value of the transactions was Dh8.93 billion which is 88.38 per cent higher than the month of August 2020 and 36.04 per cent higher than September 2019. Weekly sales transactions have been increasing at an average rate of 27.6 percent weekly for the past four weeks.
The breakdown of the transactions in September shows that 46.1 per cent was for off plan and 53.9 per cent secondary which is a rise in the off plan sector by 15 per cent compared to August 2020.
Looking at the number of transactions in each segment, the off plan transactions grew by 128.83 per cent and the secondary transactions grew by 23.22 per cent compared to August 2020. The value of offplan properties transacted grew by 140.49 percent and the value of secondary property transacted grew by 79.33 per cent compared to August 2020, said the report.
The breakdown of the transactions for third quarter was 37.48 per cent off plan and 62.52 per cent secondary which is a rise in the secondary sector by 22.75 per cent when compared to the second quarter.
"If we look at the breakdown in the number of transactions, the total off plan transactions declined by 3.08 per cent but the number of secondary transactions grew by 144.88 per cent compared to Q2. The total value of off plan property transactions declined by 4.53 per cent and the total value of secondary property transactions grew by 121.48 percent compared to Q2 2020," said the report.
(Source: Khaleej Times)
