Dubai’s secondary real estate market just had the busiest month in seven years, with anxious purchasers gobbling up more than 5.8 billion dirhams ($1.6 billion) worth of private properties in less than 30 days.
As indicated by the information ordered by Property Finder, a sum of 2,650 prepared units were sold in Dubai last February, the most elevated in a solitary month since March 2014. Optional deals address 68% of the 3,814 exchanges, worth 7.43 billion dirhams, recorded for the month.
“February 2021 now holds the record for most secondary/ready properties in a single month over the past seven years, surpassing January’s numbers,” Property Finder said.
Purchaser action in the emirate began to get after the COVID-19 limitations facilitated during the second 50% of 2020. Financial backers have been attracted by the possibility of possessing a piece of property at a much lower cost.
Deals costs and rents have been on a downfall, owing to a total of the pandemic and the big supply glut in the market. Overall, the market stays downcast in comparison to pre-COVID-19 levels.
“During the pandemic, it was very clear in the search and demand data, which we analyze daily, that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property,” said Lynnette Abad, director of research and data.
“This trend was very apparent with end-users who were looking to either purchase their first home in Dubai or upgrade to a larger property with more internal and external space.”
New launches
While the need for off-plan properties stayed low, some developers are planning to begin construction work of additional residential homes.
“Since restrictions have eased and as we moved into a new year, we started to see developers launch new phases to existing projects which are under construction,” said Abad.
“These new launches, especially in the villa/ townhouse segment, proved to be very popular with investors over the last few months.”
February sales
In the previous month, 10.3 percent of the villa deals took place in Naad Al Sheba, then comes Dubai Hills Estate (8.3 percent), Green Community (8 percent), Arabian Ranches (4.7 percent), and Dubailand (4 percent).
Among apartment purchasers, the most mainstream area is Business Bay, which represented 14.9 percent of all business exchanges, followed by Dubai Marina (9%), Jumeirah Village Circle (8%), Downtown Dubai (6.5 percent), and Palm Jumeirah (6.2 percent).
Dubai is relied upon to see the delivery of an extra 41,500 new private units this year, with 15,000 more expected in Abu Dhabi. Rents are likewise figured to fall further on the rear of supply-request imbalances.