A new milestone was reached in Dubai’s real estate sector in the third quarter of 2021, as it became the best quarter ever in terms of the transaction value.
A recent report from Property Finder shows the total amount of transactions during the third quarter of 2021 reached Dh42.35 billion in 15,926 transactions.
Compared to Q3 2020, the volume of sales transactions for the third quarter of 2021 increased 85.36 percent while the value of sales increased 135.4 percent.
Moreover, third-quarter sale transactions volume was the best since 2009.
Comparing Q3 2021 to Q3 2019, Property Finder reports that volume increased by 64.51 percent, and value increased by 138.81 percent.
6,909 transactions valued at Dh13.5 billion were conducted in the off-plan market, while 9,017 properties valued at Dh28.85 billion were transacted in the secondary market.
“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.
A series of new projects are set to launch in 2021 amid an investor appetite for new developments, she added.
As a result of the World Expo 2020, Dubai’s real estate sector is expected to benefit from price increases, but an 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.
In Dubai this year, residential real estate prices have been steadily increasing from a record low in 2020 due to pent-up demand, improved investor and consumer sentiment, and pent-up supply.