By Bernd Debusmann Jr
Luxhabitat expects a tenant's year in 2020 due to a large number of newly completed units slated to hit the market
Over 1,454 villas and 16,522 apartments were transacted in Dubai's prime residential market in 2019, according to new statistics from Luxhabitat.
According to the statistics, the volume of transactions for the overall prime market has grown by 22 percent to AED42.3 billion, up from AED34.4 billion in 2018.
Additionally, the statistics show that the average price for foot in the overall prime residential market fell by 3.72 percent. At the moment, the average price per square foot in the overall prime market for villas is AED1,348 per square foot, while for apartments is AED1,736 per square foot.
In the secondary prime market, the volume of transactions fells slightly from AED19.5 billion in 2018 to AED19.3 billion last year. The three most popular area for the secondary market were MBR city (AED3.8 billion), Downtown Dubai (AED3.1 billion) and Palm Jumeirah (AED2.7 billion).
Of the overall transactions in the prime villa market, 66 percent took place on the secondary market.
In the off-plan prime market, registration volumes almost doubled in transaction volume from 2018 to 2019, from AED14.7 billion in 2018 to over AED20 billion in 2019 – a 42 percent jump.
The statistics also show a 38 percent increase in the number of units sold, and an average price per transaction recorded at AED 1,761 per square foot. The average price for a prime off-plan villa is AED4.1 million and AED2.5 million for an apartment.
“Similar to 2019, it will continue to be very much a buyer’s market with tempting opportunities abound for both end users and seasoned inestors alike,” said luxury sales director Andrew Cleator. “In addition, this year I predict a growing hunger from local, regional and international institutional funds and REIT investment vehicles looking for larger or multiple asset acquisitions.”
Creator added that he expects “another tenant’s year with continued downward pressure on rents due to the even higher than last year’s number of newly completed units to hit the market.”
“As a result of the oversupply threat, developers will have certainly had their wings clipped when it comes to new off-plan launches,” he said.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.