Dubai property transactions at 7-year high, trend set to continue in 2021

Dubai’s real estate witnessed massive activity at the beginning of the year as secondary/ready properties transactions jumped to nearly seven-year high and this trend of increased transactions will continue in the coming months, according to official and industry executives.

A total of 3,300 sales transactions worth Dh6.74 billion were recorded in January 2021, a growth of 15.5 per cent per cent in terms of transaction numbers and 37 per cent in terms of value compared to January 2020.It was the highest number of secondary and ready properties transacted in a single month since March 2014, Dubai Land Department said in its 11th edition of Ma’asher, Dubai’s official sales price index in cooperation with Property Finder.

Data showed that Dubai’s real estate market continued its upward trend, thanks to the proactive measures and incentive packages launched by the government to address the effects and consequences of the outbreak of Covid-19. The increased transactions will enhance customer trust and happiness in the sector by supporting the efforts made towards recovery and adapting to the new normal.

“The trend throughout 2020 was that properties started transacting more, and this trend continued into this new year. 72 per cent of all transactions in January 2021 were for secondary/ready properties, and 28 per cent were for off-plan properties. When looking at the volume of transactions, the secondary market transacted 2,373 properties worth a total of Dh5.43 billion, the highest number of secondary/ready properties transacted in a single month since March 2014. In terms of sales transactions, 70 per cent were apartments and 30 per cent were villas/townhouses,” DLD said.

John Stevens, managing director of Asteco, said the slowdown in new project launches and the increased affordability of completed properties led to a rise in transaction volumes toward the end of 2020 and ultimately resulted in an increase in end-users and first-time buyers.

“Emphasis on more affordable/mix market properties will continue. As such, transaction volumes are anticipated to rise as residents take a longer-term view on living in Dubai,” said Stevens.

— waheedabbas@khaleejtimes.com