Dubai's property transactions rise 15.6% in February

February had the highest number of secondary or ready properties transacted in a single month since March 2014, Property Finder says

In the Gulf, the cost of happiness in the UAE is $70,771 per annum. Qatar has the highest happiness price tag in the region at $75,936, followed by Kuwait at $71,537. Photo: Getty Images

The number of property transactions and value of deals in Dubai rose 15.6 per cent and 10.6 per cent respectively in February compared with January, indicating a recovery is under way in the local real estate market.

The emirate's residential sector recorded 3,814 transactions worth Dh7.43 billion ($2bn) last month, according to Data Finder, the real estate insights and data platform under the Property Finder group.

This brings the year-to-date total to 7,109 transactions worth Dh14.16bn.

"During the pandemic, it was very clear in the search and demand data ... that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property," Lynnette Abad, director of research and data at Property Finder, said.

"This trend was very apparent with end users who were looking to either purchase their first home in Dubai or upgrade to a larger property with more internal and external space."

The number of deals for secondary or ready properties continued to overtake the off-plan sector in February, which now holds the record for the sale of most secondary or ready properties in a single month over the past seven years, according to the report.

Sixty-eight per cent of all transactions last month involved secondary or ready properties and 32 per cent were for off-plan properties, the report said.

In terms of the volume of transactions, the off-plan market transacted 1,163 properties worth a total of Dh1.61bn and the secondary market transacted 2,650 properties valued at Dh5.82bn.

Compared with January 2021, the number of off-plan transactions in February increased by 35.8 per cent and the secondary or ready property transactions increased by 8.2 per cent.

“Since restrictions have eased and as we moved into a new year, we started to see developers launch new phases to existing projects which are under construction," Ms Abad said.

"These new launches, especially in the villa and townhouse segment, proved to be very popular with investors over the last few months."

In the villas and townhouses segment, 10.3 per cent of all sales in February took place in Nad al Sheba, followed by Dubai Hills Estate, Green Community, Arabian Ranches and Dubailand.

In terms of apartments, 14.9 per cent of all sales transactions took place in Business Bay followed by Dubai Marina, Jumeirah Village Circle, Downtown Dubai and Palm Jumeirah.

The top areas of interest in terms of searches for villas and townhouses in February were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohammed bin Rashid City and Damac Hills, according to Property Finder's demand data.

As for apartments for the same month, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.

Some key property rental trends have also started to emerge in recent months due to the impact of the Covid-19 pandemic.

Dubai tenants are swapping their apartments for villas with gardens and pools as families seek more space due to home-schooling and working from home continues.

This year, experts predict that short-term rentals will become more popular, as landlords seek to earn more from their investment. Dubai's new remote working visa is also expected to drive demand for short-term rentals as the emirate seeks to attract the growing number of professionals exploring options to relocate abroad.