Best third quarter recorded in the history of Dubai real estate
Dubai: Q3 2021 has been the best Q3 recorded in the history of Dubai real estate in terms of sales transaction value and the best Q3 for sales transaction volume since 2009, according to Property Finder.
Q3 2021 when compared to Q3 2020 showed an increase of 85.36 percent in sales transaction volume and an increase of 135.42 percent in value. To put it in perspective, when we compare to pre-covid times such as Q3 2019, Q3 2021 showed an increase of 64.51 percent in volume and an increase of 138.81 percent in value.
In Q3 2021, 56.6 percent of all transactions were for secondary/ready properties and 43.38 percent were for off-plan properties. When we look at the volume of transactions, the off-plan market transacted 6,909 properties worth a total of AED 13.5 billion and the secondary market transacted 9,017 properties worth a total of AED 28.85 billion.
Comparing this to Q2 2021, the volume of off-plan transactions increased by 14.67 percent and the secondary/ready property sales transactions decreased 6.02 percent. The value of off plan sales transactions increased by 47.11 percent and the value of secondary sales transactions increased by 4.24 percent. We have seen a surge in off-plan sales transactions this quarter which is reflected in the ratio of secondary to off plan transactions which from 38.5 percent of the total sales volume in Q2, grew by almost 5 percent to 43.4 percent in Q3.
Lynnette Sacchetto, Director of Research and Data at Property Finder commented that “To date, off-plan sales had the highest value of sales transactions the Dubai Real estate market has seen in over eight years (since December 2013). 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. This is evident that investors see the value in investing in the future of Dubai. In addition, developers started launching new projects in 2021 and investor appetite has been strong.”
According to proprietary Property Finder demand data, the top areas for secondary sales transactions for townhouses/villas in Q3 2021 were Damac Hills 2, Dubai Hills Estate, Arabian Ranches, Nad Al Sheba and The Springs. As for apartments for the same period, the top areas of interest were Jumeirah Lake Towers, Dubai Marina, Meydan, Jumeirah Village Circle and Downtown Dubai.
Sacchetto adds, “The prices of villa/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.”
The top areas for off-plan sales transactions for villas/townhouses in Q3 2021 were Arabian Ranches 3, Dubai Land, Tilal Al Ghaf, Dubai South and The Valley. As for apartments for the same period, the top areas of interest were Business Bay, Dubai Marina, Jumeirah Village Circle, Downtown Dubai and Jumeirah Lake Towers.