Dubai property prices continue to rise amid economic recovery and higher demand

Overall, property prices in the emirate have jumped 11.8% this year

The average property price in Dubai climbed to Dh941 per square foot last month, compared to Dh818 per square foot for the same month last year. Satish Kumar / The National

Property prices in Dubai rose 15 per cent in July, as the emirate’s economy recovers from the coronavirus pandemic on the back of the UAE's vaccination programme and new stimulus measures, according to Property Monitor.

The average property price in the emirate climbed to Dh941 per square foot ($256) last month from Dh818 per square foot recorded during the same month last year, the monthly market report said.

Overall, property prices in Dubai have jumped 11.8 per cent this year, mirroring the global trend in the property market as the world recovers from the pandemic. Prices rose 1.9 per cent in July compared to the previous month.

“Although growth has been very strong, we expect the pace of recovery to slow over the rest of 2021, moving to a more sustainable pace across Dubai,” the report said.

“Looking across the world, double-digit price rises have been seen in the UK, the US, Canada, Scandinavia and parts of Europe, so the local recovery is very much part of a global trend as the world recovers from the pandemic.”

The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.

Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.

Dubai’s total transaction volumes in July stood at 4,455, down 30.3 per cent on a monthly basis but up 78.5 per cent annually, the report said. “In July, the split between off-plan and completed property transactions remained in favour of the latter with Title Deed transactions accounting for 59.1 per cent of all transactions.”

Off-plan transactions accounted for 40.9 per cent of the total deals during the month.

Emaar Properties made up the bulk of developers’ off-plan transactions with a market share of 23.1 per cent. Higher sales were recorded at Emaar Beachfront, Dubai Harbour and Arabian Ranches, among others.

Sobha Group was next, taking 15.1 per cent of all Oqood (off-plan) registrations with 249 transactions occurring in its $4 billion Sobha Hartland master development near Mohammed bin Rashid City. Its Creek Vistas Reserve led the way with 108 transactions, followed by One Park Avenue (56), Creek Vistas (55), and Hartland Waves (30), according to the report.

Data also showed that the high end of the market continues to generate more interest among investors, with a villa in Jumeirah Bay Island selling for Dh121 million last month.

“We also saw this Dh10m+ price tier marking its strongest performance on record, expanding its share of the market to 3.4 per cent in July from 2.3 per cent in June,” the report said.

Last month, Dubai registered 4,384 sales deals worth Dh11.18bn, according to Property Finder.

Villas and townhouses in Dubai Hills Estate, Arabian Ranches, The Palm Jumeirah, Damac Hills and Mohammed bin Rashid City were the top areas for transactions, according to Property Finder’s demand data.