By Sarah Townsend
Core Savills’ second quarter update points to ‘signs of recovery’ in market
Dubai’s residential sales market displayed signs of recovery in the second quarter of 2017, with an increase in both the number of transactions and of delivered units, new figures show.
The number of residential sales transactions in the second quarter was 6 percent higher than the same period last year, while the total value remained almost the same, said Core Savills’ Q2 Dubai Residential Market Update.
The core apartment districts of Dubai Marina, JLT, The Views and The Greens continue to witness steady transaction activity, the report said.
It claimed sales were not affected by the holy month of Ramadan or other factors traditionally considered to have a detrimental impact on transaction volumes, such as hot summer months and school holidays.
David Godchaux, CEO of Core Savills, said: “To gauge the common perception that property transaction activity slows down during Ramadan, we analysed sales volume since 2010.
“Since the holy month has fallen during summer over the last few years, it has caused a perception that sales slow down during Ramadan; while on the contrary, evidence suggests that people travel less often during that month.
“The slowest months on average have been August, followed by September and October. Unsurprisingly, transactions peak in June, which marks the end of Q2, as sellers and buyers attempt to finalise transactions before the summer lull.”
The report highlighted ongoing growth in off-plan supply, which has affected property sales in secondary markets.
More than 3,500 units were delivered in the second quarter of 2017, slightly more than the 3,100 units brought to market during the first quarter, Core Savills said.
It cited the delivery of Warsan Village in International City as contributing to a relatively higher ratio of 30 percent villas (including townhouses) to 70 percent apartments.
Other deliveries were distributed across Dubailand, Dubai Silicon Oasis, Downtown Dubai, Jumeirah Village Circle and Palm Jumeirah.
The report said: “We expect deliveries to slow down in Q3 and pick up pace again during and after [the Cityscape conference in Dubai] in September.
“Our conservative forecast for the remainder of the year now stands at 11,200 units.”
The report found that while sales prices are showing show signs of recovery, rentals have continued to soften across the board – “hence creating one