Dubai: Dubai’s property deals continue on getting momentum with May’s total of Dh11.11 billion the best monthly report since March of 2017. June’s deal flow is just as red hot, with daily deals shooting over Dh1 billion on Monday (June 7), the second such within a week.
For May, the number of deals was 4,429, which is 8.1% less than in April. But in value terms, May’s Dh11.11 billion was 1.4% higher, showing that the Dubai property market’s current deals rebound is being led by higher value homes.
In March 2017, there were 4,602 deals worth Dh 11.65 billion.
“One indication that Dubai’s real estate market has rebounded is that the average transaction value for a single property has increased, 16.77 percent for villa/townhouses and 17.18 percent for apartments in one year,” said Lynnette Sacchetto, Director of Research & Data at PropertyFinder.
- Property values are increasing in Dubai’s secondary market transactions and for ready homes.
- The average transaction value for off-plan properties sold in Dubai during May showed a decline.
- Secondary market and ready home sales continue to maintain a decisive edge over off-plan. In the last 3 months, the split is 62:38 in secondary’s favor.
It’s ready yet again
A month ago, 62% of all deals were for homes in the secondary market or prepared properties. Developers will be looking at the coming months to see whether the gap with the off-plan requests will limit – that will be the signal for additional dispatches.
The off-plan market witnessed 1,674 properties worth Dh2.58 billion and the secondary market dealt 2,755 properties combined to provide Dh8.53 billion. The number of off-plan deals in May was down 13.4% from April.
In the previous three months, the split between off-plan and ready properties has stuck at 38.62%. The average deal cost for off-plan property has reduced by 11.6% to Dh1.542 million, while that for secondary market homes has raised by 15% to Dh3.09 million.
“To put things further into perspective, we have seen a 36.5 percent increase in total volume of sales transactions and a whopping 83.8 percent increase in the total value of sales transactions when comparing May 2021 to May 2019,” said Sacchetto. “When looking at total values alone, the average off-plan value has increased by 6.59 percent and average secondary transaction value has increased by 34.64 percent when compared to May 2019.”