As the UAE’s economy continues on its recovery path from coronavirus, Dubai’s property market has experienced steady growth in the first half of the year compared to the same period in 2020, according to new data from Property Finder.
High sales transaction volumes from January to June 2021 accounted for a solid first six months of 2021 with a total of 27,373 transactions worth AED61.97 billion ($16.89bn), a 40.2 percent increase in volume of transaction when compared to H2 2020 and a 55.87 percent increase in value of transactions.
In H1 2021, Dubai’s real estate market had 17,434 secondary/ready transactions worth AED46.88bn and 9,939 off-plan transactions (AED15.09bn). This constitutes a 44 percent increase in volume of transactions in this category and 56.28 percent growth in value when compared to H2 2020, the data indicated.
Meanwhile, off-plan transactions showed a slightly lower increase when compared to the previous half year with an increase of 34.02 percent for volume of transactions and an increase of 54.61 percent in value of transactions.
Average transaction values for both secondary/ready and off-plan properties have also increased, showing an increase in the average price per transaction. The average transaction price for secondary/ready properties increased from AED2.48m in H2 2020 to AED2.69m in H1 2021. The average transaction price for off-plan properties increased from AED1.32m in H2 2020 to AED1.52m in H1 2021. This reveals an increase of 8.53 percent for secondary/ready properties and an increase of 15.36 percent for off-plan properties.
Mohammed bin Rashid City was among the top areas of transactions for villas/townhouses in H1 2021.
“54 percent more apartments were sold in H1 2021 compared to H2 2020 and 49 percent more villa/townhouses. The increase was in both segments, and the growth of the entire residential market by approximately 50 percent,” said Lynnette A Sacchetto, director of Research & Data at Property Finder.
The top areas of transactions for villas/townhouses in H1 2021 were Mohammed bin Rashid City, Dubai Hills Estate, Dubai Land, Nadd al Sheba and the Green Community, as per Property Finder’s data.
As for apartments for the same period, the top areas of sales were Business Bay, Jumeirah Village Circle, Dubai Marina, Jumeirah Lakes Towers and Downtown Dubai.
Property Finder demand data also shows that sea-view, upgraded, furnished, payment plan and pool were the top keywords used by people searching for properties across Dubai in H1 2021. “This clearly shows a desire for quality amenities as people now care more about how they live and spend their money,” said Sacchetto.
This rebound has been echoed by several real estate consultancies. Property prices in Dubai during the second quarter of 2021 accelerated at their fastest pace since the summer of 2014 with large townhouses and villas seeing the sharpest rebound, according to the latest research by Knight Frank.
While average prices remain 26.3 percent down on their previous highs, certain buyer groups have weathered the market’s lopsided performance, with certain nationalities enjoying significant price appreciation, the real estate consultancy said.
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