The Dubai property market has recovered swiftly over the last few months, and this is visible through the thumping sales volumes recorded by the end of August 2021. The real estate property market in Dubai has swiftly revived to touch a whopping Dh100 billion and even more! By end-August 2021, sales volumes have already outstripped the Dh88 billion mark with more buyers looking to snap up off-plan and ready properties.
Demand for property in Dubai is already getting better and total sales volumes look set to achieve this historic Dh100 billion milestone for the year! The numbers have already gone past historic highs seen earlier and this is more than the most positive forecasts given for the sector earlier this year. First-time home buyers and more end-users are leading the charge for snapping up quality Dubai property units.
The real estate property segment is also witnessing a higher number of mortgage-supported real estate transactions with more residents chalking out long-term blueprints for staying in Dubai. They are now conveniently switching to actual home purchases as compared to renting homes earlier.
Developers are also finding that recoveries are stronger in the off-plan sales category than before. If this momentum sustains for 2-3 more quarters, all anxieties about oversupply and piling up of unsold inventory will dissipate completely as estimated by industry experts. By November 2021, real estate developers in Dubai will start reintroducing new launches. Most reputed realty players completely skipped new launches for 2020 and previous forecasts only pegged a market recovery by 2023-24.
Sales figures in the Dubai property market were the highest monthly sales figures witnessed in a decade, as seen in June and August 2021. The number of daily deals numbering Dh1 billion are also going up swiftly at the DLD (Dubai Land Department). End-users possess the belief that if they keep delaying their property purchases, then values of real estate units will keep skyrocketing further, leading to them missing out on tangible opportunities.
Several investors are also gung-ho about the recovery in the real estate property market and a pick-up in demand for property in Dubai. They are now looking to hold onto their properties instead of selling them on the upswing. These properties were being quoted at considerably lower thresholds as compared to their sales value for the last 4-5 years. However, values are steadily rising in the current scenario.
The month of August 2021 witnessed 5,780 units being sold and they were worth a staggering Dh14.97 billion. This is the second highest month of sales ever since December 2013, after June this year. The year-to-date tally shows 37,537 real estate transactions valued at Dh88.12 billion. The values of realty deals are a whopping 22.61% higher than all of the last year within only 8 months of this year. 2020 had only 35,401 property transactions which were cumulatively worth Dh71.87 billion.
In fact, Dubai property prices may increase by approximately 3% in 2021 and 2.5% in 2022, on the back of sustained demand. The residential segment will remain steady over the next 2-3 years, backed by soaring interest amongst end-users in property in Dubai and sustained confidence of property investors. Overall prices will remain at affordable and competitive levels in spite of slight increases due to soaring demand. The off-plan market has already bounced back, and projects are once again being sold out within a few hours itself! This shows the staggering confidence placed by market investors in Dubai and its future.
Approximate sales transaction values went up to Dh2.589 million for August 2021, indicating growth of 1.57% as compared to July 2021. The ready/secondary average values of transactions went up to Dh3.149 million, indicating growth of 5.91%. At the same time, average transaction values for off-plan units went down by 1.3% to stand at Dh1.905 million.
Some of the top areas for townhouses and villa transactions included Dubai Land, Arabian Ranches 3, Tilal al Ghaf, Dubai South and Damac Hills 2. Buyers were highly interested in locations like Dubai Harbour, Business Bay, Jumeirah Village Circle, Downtown Dubai, and Mohammed bin Rashid City as per reports.
Dubai property market trends- New and emerging locations
A higher supply level for residential realty units in the Emirate of Dubai has led to numerous choices for prospective realty buyers here. Dubai Creek Harbour is already transforming into one of the biggest mixed-use developments on the waterfront of the city. This will be a mega-city which will have 48,500 residential units once it has been completed. It will have a yacht club, marina, and numerous hotels.
You will also have easier access to the metro network of the Emirate and spectacular views of the Dubai Creek Tower. It will ultimately become the second-tallest building in the whole world upon completion. Despite the luxurious features and blueprints of the project, there are still several apartments and housing units with competitive and comparatively affordable rentals. This may cost tenants roughly between AED 80,000 and AED 100,000 annually for a two-bedroom unit for instance.
Those looking for additional space and proximity to outdoor zones are now looking at the Reem Community. This area is positioned near the premium Arabian Ranches community with a couple of gated villa townships named Mira Oasis and Mira along with attracting smaller families and those who are fond of nature. The area is located away from the usual bustle and buzz of Dubai although it offers all necessary conveniences and amenities for buyers. AED 95,000-125,000 annually is the average rental threshold for a three-bedroom housing unit, based upon square footage aspects.
Dubai Hills Estate is a part of MBR City and is one of the most coveted real estate communities in Dubai. It has numerous villas, townhouses and apartment buildings encircling an 18-hole championship golf course. The project is one of the biggest residential zones in the area. Dubai Hills Estate is a fantastic option for those who love nature. It comes with beautiful lakes, parks, and sports, cultural, retail, shared dining and much more. The city within a city feel has drawn numerous buyers in recent times. Average annual rentals for three-bedroom apartments stand at AED 120,000 while rentals for three bedroom villas stand at AED 165,000.
The Dubai property market has seen demand increasing for hitherto popular communities like Damac Hills for instance. This area has always been preferred by families owing to its good community amenities covering areas like sports and games, healthcare, leisure, education, lifestyle and even entertainment. Tenants here look for places which can be considered for permanent residence in Dubai. Demand for property in Dubai has also permeated the luxury property segment in this area. The area is a high-end zone while coming with attractive property units that were designed by Casa and Fendi.
There are several global brands including Trump International Golf Club Dubai and the Paramount Hotels & Resorts. The location is highly convenient, offering easy access to the downtown zone and Umm Suqeim Road. AED 100,000 and AED 150,000 is the rental range for three-bedroom villas, based upon overall square footage and the community in question. Rentals usually start from AED 100,000 for two-bedroom apartments in this location as well.