Dubai property records best ever third quarter as value of sales hits $11.5bn

The number of real estate deals touch a 12-year high after rising to 15,926 during the period, Property Finder says

An Arabic-style villa in Palm Jumeirah. Dubai is recording a sharp increase in the sale of homes valued at more than $10 million. Photo: Engel and Voelkers

A Dh48million mansion in Emirates Hills. In Dubai, 22 homes worth more than $10m were sold in the first five months of 2021, the most since 2015, and up from 19 homes in the corresponding period in 2020. Photo: Engel and Voelkers

A custom-built luxury villa in Dubai Hills Estate. Dubai was one of the first cities to reopen its borders to international tourists in July 2020. Photo: Luxhabitat Sotheby's International Realty

A rendering of a luxury villa in Mohammed Bin Rashid Al Maktoum City. The sharp increase in Dubai's luxury home market reflects similar patterns in other global cities. Photo: Meydan Sobha

Night-time rendering of a mansion at Meraas’ Bvlgari Residences on Jumeirah Bay Island. Photo: Meraas

The Il Primo apartments in Downtown Dubai. The smallest units of around 4,979 square feet are being sold for £3.5 million each. Photo: Emaar

The swimming pool at the MAG 318 upscale residential tower in Business Bay. Antonie Robertson / The National

Dubai recorded real estate transactions worth Dh42.4 billion ($11.5bn) in the three months to September 30, making it the best third quarter in the emirate’s history in terms of the value of sales transactions, according to listings website Property Finder.

The emirate registered 15,926 real estate deals in the same period, making it the best third quarter for sales transaction volumes since 2009, Property Finder said on Wednesday.

The company said 56.6 per cent of all transactions in Dubai during the third quarter were for secondary or ready properties, while off-plan properties accounted for 43.4 per cent.

The off-plan market accounted for 6,909 transactions worth Dh13.5bn in the third quarter and the secondary market registered 9,017 deals worth Dh28.85bn, the statement added.

“To date, off-plan sales had the highest value of sales transactions in the Dubai real estate market in over eight years [since December 2013],” Lynnette Sacchetto, director of research and data at Property Finder, said.

“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.”

The UAE property market, which softened due to a three-year oil price slump that began in 2014 and oversupply concerns, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid a remote working and learning trend sparked by Covid-19.

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

Residential transaction volumes in Dubai were up 76.8 per cent in the first eight months of the year, while secondary market transactions jumped 120.7 per cent and off-plan transactions rose 39 per cent, according to real estate consultancy CBRE.

The volume of off-plan transactions in Dubai during the third quarter of this year increased 14.7 per cent compared with the previous quarter, while the number of secondary market deals fell by 6.02 per cent, Property Finder said.

Meanwhile, the value of off-plan sales transactions increased 47.1 per cent compared with the previous quarter. The value of secondary sales deals also rose 4.2 per cent.

The top areas for secondary sales transactions for villas and townhouses in the third quarter were Damac Hills 2, Dubai Hills Estate, Arabian Ranches, Nad Al Sheba and The Springs, according to Property Finder.

“The prices of villas and 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,” Ms Sacchetto said.

The most popular areas for ready apartments were Jumeirah Lakes Towers, Dubai Marina, Meydan, Jumeirah Village Circle (JVC) and Downtown Dubai.

The top areas for off-plan sales transactions for villas and townhouses included Arabian Ranches 3, Dubai Land, Tilal Al Ghaf, Dubai South and The Valley, Property Finder said.

As for apartments, the top areas of interest were Business Bay, Dubai Marina, JVC, Downtown Dubai and JLT.

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Property of the week: Dubai Marina penthouse with a swimming pool in the living room