Dubai real estate transactions exceed Dh100 billion mark
2021 property sales value is already the highest since 2017.
Real estate transactions in Dubai crossed the Dh100 billion mark in September due to the growth in monthly sales transactions and their values leading up to Expo 2020 has been phenomenal.
According to Property Finder, Dubai recorded 5,762 transactions worth Dh16.2 billion in September, making it the best September on record in the past eight years. September also saw the highest value of real estate 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.
Property Finder data showed that total sale transactions in the first nine months reached 43,299 worth Dh104.3 billion, up by 45 per cent as compared to last year as a whole.
In September 2021, 56 per cent of all transactions were for secondary/ready properties and 44 per cent were for off-plan properties. The off-plan market transacted 2,530 properties worth a total of Dh5.1 billion. This is the highest value of off-plan sales transactions the Dubai market has seen in over eight years. The secondary market transacted 3,232 transactions worth Dh11.1 billion.
The median price for secondary apartments has increased by 41 per cent over the past year and has increased by 20 per cent for secondary villa/townhouses. The median price for off-plan apartments has increased by more than 15 per cent while villa/townhouses in the off-plan segment have increased by over 10 per cent.
“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.
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