Dubai sees a shift in demand to bigger properties amid pandemic
The Dubai property market has seen an increase in user demand for units in the suburbs this year as tenants sought more spacious homes amid the Covid-19 pandemic, according to listings portal Property Finder.
Communities such as Tilal Al Ghaf, Al Muhaisnah, Wasl Gate, Town Square, Mira, Rukan and Dubai Harbour witnessed a surge in popularity this year, according to a report by the property portal.
“The Dubai real estate market saw an increased appetite for upgraded housing solutions – be it to a larger, more spacious home situated on the outskirts of the city, or even if a move to a smaller space, but in a more prime location, people are looking to set themselves differently,” the report said.
Prime and central locations such as The Springs, Dubai Marina, Jumeirah Lakes Towers and Arabian Ranches are also seeing an increase in demand as people, who were earlier priced out of these communities, now find them affordable.
Dubai’s real estate market slowed after a drop in oil prices that began in 2014, in tandem with an oversupply in the market as Residential projects in Dubai are completed. JLL’s third quarter UAE Real Estate Market report said about 26,000 new homes were scheduled for completion in the final quarter of this year.
Transactions picked up in November, though, with Property Finder stating the 3,928 sales registered were the highest in the emirate for nine months, generating Dh7.65 billion. Dubai has registered 33,537 transactions worth Dh69bn so far this year.
Secondary property sales registered in November were the highest in the past six years and seven months, according to Data Finder, the data platform under the Property Finder group.
While September to November witnessed the highest ready villa and townhouse sales historically, the month also marked the highest ready apartment sales in 16 months, according to Data Finder.
The number of villa and townhouses searches increased by 400 per cent since the start of the year, while apartment searches fell, Data Finder found.
The most popular apartment communities in Dubai based on user searches include Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Village Circle, Business Bay, JLT and Jumeirah Beach Residence. Meanwhile, the Dubai Hills estate, Arabian Ranches, Palm Jumeirah and Damac Hills (including Akoya by Damac) topped searches for villas and townhouse communities.
The greatest number of apartments available are currently available in Al Jaddaf, Jumeirah Heights, Al Barari and Al Kifaf, while the most villas and townhouses can be found in Nad Al Sheba, Meydan and Mudon. This is based on the number of property listings on the portal.
The Dubai real estate market saw an increased appetite for upgraded housing solutions – be it to a larger, more spacious home situated on the outskirts of the city, or even if a move to a smaller space, but in a more prime location
Three-bedroom properties are most in demand for people looking to move into a villa or townhouse, while one-bedroom apartments continue to be the most popular, Property Finder said.
Between January and November this year, there was a drop in demand for smaller units, but demand increased for three, four and four-plus bedroom units.
Searches for studio and one-bedroom apartments dropped by 4.6 per cent and 4.7 per cent respectively, the report added.