Dubai: Dubai’s property deals keep on gaining momentum, with May’s tally of Dh11.11 billion the best monthly showing since March of 2017. June’s deal flow is just as red hot, with daily transactions shooting past Dh1 billion on Monday (June 7), the second such within a week.
For May, the number of transactions were 4,429, which is 8.1 per cent lower than in April. But in value terms, May’s Dh11.11 billion was 1.4 per cent higher, indicating that Dubai property market’s current sales rebound is being led by higher value homes.
In March 2017, there were 4,602 transactions worth Dh 11.65 billion.
“One indication that Dubai’s real estate market has rebounded is that the average transaction value for a single property has increased, 16.77 per cent for villa/townhouses and 17.18 per cent for apartments in one year,” said Lynnette Sacchetto, Director of Research & Data at PropertyFinder.
- Property values are increasing in Dubai’s secondary market transactions and for ready homes.
- Average transaction value for offplan properties sold in Dubai during May showed a decline.
- Secondary market and ready home sales continue to maintain a decisive edge over offplan. In the last 3 months, the split is 62:38 in secondary’s favour.
It’s ready yet again
Last month, 62 per cent of all deals were for homes in the secondary market or ready properties. Developers will be looking at the coming months to see whether the gap with offplan demand will narrow – that will be the cue for more launches.
The offplan market saw 1,674 properties worth Dh2.58 billion and the secondary market transacted 2,755 properties combined to deliver Dh8.53 billion. The number of offplan transactions in May were down 13.4 percent from April.
In the last three months, the split between offplan and ready properties has stuck at 38:62 per cent. The average transaction price for off-plan property has reduced by 11.6 per cent to Dh1.542 million, while that for secondary market homes has increased by 15 per cent to Dh3.09 million.
“To put things further into perspective, we have seen a 36.5 per cent increase in total volume of sales transactions and a whopping 83.8 percent increase in total value of sales transactions when comparing May 2021 to May 2019,” said Sacchetto. “When looking at total values alone, the average offplan value has increased by 6.59 per cent and average secondary transaction value has increased by 34.64 per cent when compared to May 2019.”