Ready properties outperform off-plan segment in Dubai
February now holds record for the most secondary/ready property sales transactions in a single month over the past three years
Dubai’s real estate market recorded 3,787 sales transactions worth Dh7.43 billion in February, 13.8 per cent more than January in terms of volume and 8.9 per cent more in terms of value.
According to Mo’asher, the Dubai Land Department’s (DLD) official sales price index, the total this year up until the end of February is 7,114 sales transactions worth Dh14.2 billion.
The index data, launched in cooperation with Property Finder, is taken from the base year 2012. The data shows that in February, 67 per cent of overall transactions were for secondary/ready properties and 33 per cent were for off-plan ones.
“When we look at the volume of transactions, the off-plan market transacted 1,355 properties worth a total of Dh1.8 billion, and the secondary market transacted 4,114 properties worth a total of Dh15.3 billion. The number of off-plan transactions in February increased by 39.9 per cent compared to January 2021,” it noted.
The trend in increased transactions in secondary/ready properties compared to off-plan ones witnessed in the second half of 2020 continued into 2021, and the demand in the ready market continued to grow as February now holds the record for the most secondary/ready property sales transactions in a single month over the past three years, surpassing January’s numbers.
“During the pandemic it was very clear in the search and demand data, which we analyse daily, that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property. 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,” Lynnette Abad, director of research and data at Data Finder, the real estate insights and data platform under Property Finder Group, said in an earlier report.
According to Asteco’s Q4 2020 UAE Real Estate Report, the sector has shown an unexpected level of resilience in the face of serious challenges created by the pandemic. However, the supply-demand imbalance is likely to worsen over the course of 2021, similar to last year.
Data Finder said in its report that 10.3 per cent of all sales in the villas/townhouses sector in February 2021 took place in Nad Al Sheba, followed by Dubai Hills Estate (8.3 per cent), Green Community (eight per cent), Arabian Ranches (4.7 per cent) and Dubailand (four per cent). Looking at apartments, 14.9 per cent of all sales transactions took place in Business Bay followed by Dubai Marina (nine per cent), Jumeirah Village Circle (eight per cent), Downtown Dubai (6.5 per cent) and Palm Jumeirah (6.2 per cent).
The top areas of interest in terms of searches for villas/townhouses in February 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.
Overall, the monthly index recorded 1.071 and an index price of Dh1,004,652. The apartments’ monthly index recorded 1.125 and an index price of Dh944,982, while the monthly index of villas/townhouses recorded 0.924 and an index price of Dh1,760,377.
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