Values and volumes of Dubai property deals surge in Q3 as economy recovers

Originally published on Nov 23, 2020 | The National

The value of property transactions in Dubai in the third quarter of the year jumped more than 65 per cent on the second quarter to Dh18.15 billion as the emirate’s economy recovered from the pandemic-induced slowdown.

The number of deals during the three months to the end of September also climbed more than 55 per cent to 8,675, listings portal Property Finder, which helps compile the emirate’s real estate index with Dubai Land Department, said.

This brought the total value of property transactions for the first nine months of the year to Dh50.62bn, through 24,473 deals.

September was the strongest month of the quarter for residential real estate, with 3,894 deals. The volume of sales jumped 53.3 per cent from August, the DLD said in a separate statement on Tuesday. The value of the transactions reached Dh8.943bn, which is 39.1 per cent higher than in the same month last year.

“As was predicted, we have seen a V-shaped recovery in the real estate sector,” the DLD said. “It was enforced with September results as we started to see the same level of [recovery in] both transaction volume and values.”

Some 46 per cent of sales transactions last month were off-plan, with the remaining 54 per cent being ready-built homes, the DLD said.

Off-plan property transactions in the emirate grew more than 129 per cent, while secondary market deals increased 23.5 per cent from August. The value of off-plan property deals in September rose 155.7 per cent month-on-month, while those of completed homes jumped 74.2 per cent, the DLD added.

Although transaction volumes have picked up, prices have continued to fall. Apartment and villa prices were both 10 per cent lower in the third quarter than in the same period last year, consultancy Asteco said in its quarterly UAE Real Estate report last week.