Dubai’s property market recorded its best year for sales transaction numbers since 2009 last year, totaling Dh151.07 billion. According to Property Finder data, Dubai set its highest real estate sales tally ever in 2009, totaling Dh155 billion-plus. (Sales in 2020 were just over Dh70 billion.)
A huge percentage of property sales were driven by end-user demand, with nearly 60 percent of deals involving ready-to-move-in homes and ones bought from the secondary market. Developers in Dubai got busy with new launches in the last three months of 2021, making up the rest of the sales.
More price rises?
Buyers are paying anywhere from 15-25 percent more than what they would if they bought in 2019-20 at the luxury end of the market. The situation could become worse as the supply of available upmarket homes dries up. “Investor sentiment remains strong, demand is still very high and supply is dwindling,” said Lynnette Sacchetto, Director of Research and Data at Property Finder. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into the first half of 2022.”
Offplan picks up
Sales deals in the fourth quarter will provide more incentives for developers to restart launches. In Dubai, off-plan home sales have risen by 14.53 percent between the third and fourth quarters as investors get back into the buying mood. Sales of ready and second market deals increased by 11.22 percent.
Developers will benefit from the fact that off-plan sales rose by 25.38 percent, which indicates that more high-end units are in demand. Another possibility is that developers are gradually raising their asking prices – and still getting buyers. The spirit of bargaining and incentives seems to have departed.
“Despite the fact that many decided to travel for the first time in over a year during the holidays, Q4 didn’t seem to see a slowdown in sales transactions,” said Sacchetto.