Average property sales prices in Dubai have rocketed by more than a third over the past year, according to new research.
Broker Allsopp & Allsopp said average values have jumped by 35 percent since the second quarter of 2020 from AED2.2 million to AED3 million ($810,000).
Prices have also risen by four percent in Q2 compared to the previous quarter, the real estate firm added in a report.
At the same time, sales transactions have more than doubled since Q2 2020 but registered a 16 percent decrease in Q2 compared to the first quarter of 2021.
Allsopp & Allsopp recorded a 67 percent increase in buyer registrations over Q2 2020 but again this number fell by 14 percent compared to the previous quarter.
The report noted that international investors dominated Q2 transactions with British, Indian and French buyers the most active.
Nearly two thirds of deals (61 percent) of deals were mortgage based while 32 percent were cash transactions and seven percent were developer deals, Allsopp & Allsopp added.
For the Dubai lettings market, average rents rose by two percent in Q2 compared to a year earlier and fell 11 percent compared to the previous three months.
Lettings registrations rose by 42 percent compared to the same period last year and fell 10 percent compared to Q1.
The most active tenants in the market between April and June were Brits, Indians and Lebanese, Allsopp & Allsopp said, adding that only a quarter of landlords were demanding one cheque payments for the year.
The report follows comments by HSBC and Morgan Stanley who praised the comeback seen in Dubai property prices.
HSBC Holdings said a growing demand for larger homes during the pandemic will further boost Dubai’s property market, while analysts at Morgan Stanley expect the rally to last for “several years”.
Dubai Land Department has also witnessed the surge, with a total of 25,455 real estate transactions worth AED92 billion registered in the first four months of 2021, an increase of 51 percent in terms of volume and 72 percent in terms of value compared to the same period in 2020.
According to its real estate bulletin, 8,749 new investors entered the market during January to April, representing 65 percent of the total number of real estate investors registered in that period, and up 54 percent on the year-earlier period.
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