Due to the exponential growth in monthly sales transactions and values leading up to Expo 2020, real estate transactions in Dubai crossed the 100 billion Dh mark in September.
This marks the best September on record in the past eight years, according to Property Finder, with 5,762 transactions worth Dh16.2 billion. Also in September, most real estates was sold in a single month since December 2013.
“To date, we have over Dh104 billion in sales transaction value which is the highest value since 2017, and mortgage transactions are at an all-time high year-to-date, breaking all records, and the year hasn’t ended yet,” said Lynnette Sacchetto, director of research and data at Property Finder.
“Many end-users who have been in the market to purchase have been priced out of the segments they have been looking in, therefore we have seen recent trends where end-users have decided to renovate, upgrade and extend their current properties instead. This has caused a shortage in the market of quality contractors with most booked until mid-2022,” said Sacchetto.
According to Property Finder data, there were 43,299 sale transactions worth Dh104.3 billion in the first nine months, up by 45 percent from last year.
Among all transactions in September 2021, 56 percent concerned secondary/ready properties, while 44 percent concerned off-plan properties. In the off-plan market, 2,530 properties were sold for a total of Dh5.1 billion. Off-plan sales in Dubai are at their highest level in eight years. A total of 3,232 transactions worth Dh11.1 billion were recorded in the secondary market.
In the past year, the median price of secondary apartments has increased by 41 percent, and the price of secondary villas/townhouses has increased by 20 percent. The median price for off-plan apartments has increased by more than 15 percent, while the price for villas/townhouses has increased by over 10 percent.
“Recent trend is in the villa/townhouse segment, where many buyers are being priced out of the bedroom types they are looking for, therefore having to move to the next level below in bedrooms. This has been another reason why prices continue to rise and stay strong in the villa/townhouse segment as the demand is still very prevalent,” said Sacchetto.