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Dubai property records highest-ever third quarterly sales transaction at Dh42.35 billion

Dubai - It was also the best third quarter for sale transactions volume since 2009.

Dubai’s property sector reached a new milestone in the third quarter of 2021, as it became the best third quarter ever in terms of transaction value in the history of the emirate’s real estate sector.

The latest data released by Property Finder for the third quarter of 2021 showed the total value of transactions reaching Dh42.35 billion in 15,926 deals.

Data showed sales transactions volume increased 85.36 per cent in the third quarter of 2021 as compared to Q3 2020 while value increased 135.4 per cent during the comparative period.

It was also the best third quarter for sale transactions volume since 2009.

When compared to pre-Covid times such as Q3 2019, the third quarter of 2021 recorded an increase of 64.51 per cent in volume and an increase of 138.81 per cent in value, Property Finder said.

The off-plan market saw 6,909 transactions worth Dh13.5 billion and the secondary market transacted 9,017 properties worth Dh28.85 billion.

“To date, off-plan sales had the highest value of sales transactions the Dubai real estate market has seen in over eight years (since December 2013). Off-plan sales started to increase considerably in 2021 and the amount of sales transactions between secondary and off-plan are now about 50/50. This is evident that investors see the value in investing in the future of Dubai,” said Lynnette Sacchetto, director of research and data at Property Finder.

In addition, she pointed out that developers have started launching new projects in 2021 amidst a strong investor appetite.

Global rating agency S&P said Dubai's real estate sector will likely benefit from the World Expo 2020 but a structural oversupply of residential properties will challenge price increases over the long term, making the recovery fragile.

“In our view, higher presales will contribute to stronger revenue for the real estate developers over the longer term. That said, over our 2021-2022 forecast horizon, developers might see improved credit metric headroom for the current ratings thanks to stronger cash flow from inventory sales,” it said.

So far this year, S&P said residential real estate prices in Dubai have been rebounding strongly from a record low at the end-2020 on the back of pent-up demand from both international and local buyers, improved investor and consumer sentiment,

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“The prices of villa/townhouses continue to rise due to very high demand and low supply and we are only expecting 6,000 new units to be completed by the end of 2021, therefore this doesn’t add much of a dent to the supply equation,” said Sacchetto.

“As the UAE recovers from the Covid-19 pandemic, especially with the opening of the borders and the return of tourists to the UAE, we see businesses coming back to life – to the pre-Covid-19 normalcy. We are also preparing to launch a number of initiatives to support the economic growth,” said Adel Sajan, group managing director of Danube Group.

According to Property Finder, the top areas for secondary sales transactions for villas/townhouses in Q3 2021 were Damac Hills 2, Dubai Hills Estate, Arabian Ranches, Nad Al Sheba and The Springs. For apartments, the top areas were Jumeirah Lake Towers, Dubai Marina, Meydan, Jumeirah Village Circle and Downtown Dubai.

While the top areas for off-plan sales transactions for villas/townhouses in Q3 2021 were Arabian Ranches 3, Dubai Land, Tilal Al Ghaf, Dubai South and The Valley. For apartments, Business Bay, Dubai Marina, Jumeirah Village Circle, Downtown Dubai and Jumeirah Lake Towers recorded the highest interest from investors.

waheedabbas@khaleejtimes.com