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Dubai property market: Off-plan sales jump over 300% in January

Real estate transactions worth Dh16.69 billion were conducted last month

Dubai real estate market recorded 5,797 sales transactions worth Dh16.69 billion last month, becoming the best January ever on record, Property Finder said in its monthly report on Thursday.

In January 2022, 53 per cent of all transactions were for secondary/ready properties and 47 per cent were for off-plan properties. The off-plan market transacted 2,706 properties worth a total of Dh5.32 billion while the ready market transacted 3,091 transactions worth Dh11.37 billion.

Comparing January 2022 month-on-month to December 2021, the off-plan value fell by more than six per cent but the volume increased by 5.58 per cent. Secondary volume increased by more than 1.74 per cent and value increased by 13.68 per cent. Looking at overall transactions, total transaction value increased by 6.40 per cent and volume increased by 3.5 per cent compared to December.

Comparing overall performance for the month compared to January 2021, January 2022 had 74.56 per cent more transactions with 145.31 per cent more in value. Comparing it to the exact time last year, the secondary volume increased by 30.70 per cent and value by 106.77 per cent. The rebound we have seen in the off-plan market has been significant, as off-plan sales transaction value increased by 307.88 per cent and volume increased by 183.05 per cent.

“There are many questions as to how 2022 will pan out. Based on numerous factors such as the data and trend patterns, it looks like 2022 will continue on an upward trajectory when it comes to sales volumes and price increase in prime, popular areas,” said Lynnette Sacchetto, Director of Research and Data at Property Finder.

“New supply will be low in prime areas and certain asset classes, such as villa/townhouses, therefore we can continue to expect price increases in these areas as demand continues to be strong. The off-plan segment will most likely not cool down anytime soon due to investor sentiment, attractive pricing, the lure of Dubai and overall good projects launching in the market. During the pandemic, many developers took a step back and really assessed the market to understand what type of projects to build which checked all of the boxes for investors and consumers alike, she added.

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Since the beginning of the Expo 2020 Dubai, the market has seen 23,739 real estate sales transactions worth Dh63.43 billion. This included 13,120 secondary/ready sales transactions worth Dh41.19 billion and 10,619 off-plan sales transactions worth Dh22.24 billion.