Dubai off-plan property sales soar in first 5 months

Dubai South registers 614% increase in sales, JVC up by 170%

Jumeirah Village Circle. (ITP Images)

Jumeirah Village Circle. (ITP Images)

Off-plan property sales in Dubai rose by 58 percent in the first five months of 2017 compared to same period last year, according to a report by Global Capital Partners-Reidin.

The data, based on the Dubai Land Department registered transactions, revealed 7,152 off-plan units were sold between January and May, compared to 4,521 units in the previous year.

The largest increase was recorded in Dubai South, adjacent to Al Maktoum International Airport and Dubai Expo 2020, with sales spiralling by 614 percent to 528 units compared to just 74 units last year.

Sales in Jumeirah Village Circle rose by 170 percent to 923 units compared to 342 units, followed by Dubai Creek Harbour increasing by 124 percent to 632 units from 282 units.

Dubai Marina registered a 120 percent growth with 608 dwellings sold, compared to 276 units, while Downtown Dubai rose by 61 percent to 820 units from 510 units.

Sameer Lakhani, managing director, Global Capital Partners, said: “In 2017, as transaction volumes surged, developer launches appear to be recalibrating towards an equilibrium with the likelihood of back-ended and post-handover payment plans continued to be ‘tweaked’ in response to changes in the price cycle.”

He added that back-ended schemes have proliferated the real estate ecosystem and adopted by government-backed developers after first being introduced by private developers in early 2014.

“This has clearly been as part of measures to revive demand and its increasing popularity is reflected through the increase in number of transactions.”

In April, Ivana Gazivoda Vucinic, head of advisory and research, Chestertons MENA, said off-plan sales were up by 45 percent in the first quarter 2017, driven by incentives and improved payment plans.

She described the increase as “early signs of recovery”, despite concerns of oversupply.

The consultancy estimates 15,000 new units to be completed in 2017 compared to 16,000 units delivered last year.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: Ahmad Ansari

The nature of commentary about the real estate markets is puzzling to say the least. However, it is heartening to see that the data is showing a sustained uptrend in transactions. If previous trends in international markets are to be repeated, it is likely that this will be the precursor for further good news. fingers crossed!

Posted by: JRH

I personally wouldn't be taking this as a sign of an upturn in the market, rather certain investors taking advantage of particularly generous terms being offered in the off plan market.

Headline growth numbers such as those quoted in the article sound good but in the long run the huge short terms swings that are seen in this market are not a force for good - stability is the key.

I also echo your thoughts about the commentary - it's always wise to look into who is making the comments and their motives for doing so.

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

3
Dubai real estate: which way will it go?

Dubai real estate: which way will it go?

In this special report, Arabian Business analyses the state of...

3
Most Discussed
sponsoredTracking