Transactions - Dubai Off plan Verses Ready Property
1. Dubai's real estate market recorded:
â–ªï¸ 3,787 sales transactions worth Dh7.43 billion in February.
â–ªï¸ 13.8 per cent more than January in terms of volume
â–ªï¸ 8.9 per cent more in terms of value.
2. The Dubai Land Department's (DLD) official sales price index, the total this year up until the end of February is 7,114 sales transactions worth Dh14.2 billion.
3. The index data is taken from the base year 2012. The data shows that in February, 67 per cent of overall transactions were for secondary/ready properties and 33 per cent were for off-plan ones.
4. When you look at the volume of transactions:
â–ªï¸ The off-plan market transacted 1,355 properties worth a total of Dh1.8 billion
â–ªï¸ The secondary market transacted 4,114 properties worth a total of Dh15.3 billion.
â–ªï¸ The number of off-plan transactions in February increased by 39.9 per cent compared to January 2021.
â–ªï¸ The trend in increased transactions in secondary/ready properties compared to off-plan ones witnessed in the second half of 2020 continued into 2021.
â–ªï¸ The demand in the ready market continued to grow as February now holds the record for the most secondary/ready property sales transactions in a single month over the past three years, surpassing January's numbers.
The COVID-19 Pandemic
â–ªï¸ During the pandemic it was very clear that if we analyse daily, that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property.
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.
â–ªï¸ The sector has shown an unexpected level of resilience in the face of serious challenges created by the pandemic.
â–ªï¸ The supply-demand imbalance is likely to worsen over the course of 2021, similar to last year.
Sales in the villas/townhouses sector in February 2021
Looking at Villas/Townhouses
â–ªï¸ Nad Al Sheba (10.3 %)
â–ªï¸ Dubai Hills Estate (8.3 %)
â–ªï¸ Green Community (8 %)
â–ªï¸ Arabian Ranches (4.7 %)
â–ªï¸ Dubailand (4 per cent)
Looking at Apartments
â–ªï¸ 14.9 % of all sales transactions took place in Business Bay
â–ªï¸ Followed by Dubai Marina (9 %)
â–ªï¸ Jumeirah Village Circle (8 %)
â–ªï¸ Downtown Dubai (6.5 %)
â–ªï¸ Palm Jumeirah (6.2 %)
Top Areas of Interest
The top areas of interest in terms of searches for villas/townhouses in February 2021 were:
â–ªï¸ Dubai Hills Estate
â–ªï¸ Arabian Ranches
â–ªï¸ Palm Jumeirah
â–ªï¸ Mohamed bin Rashid City
â–ªï¸ Damac Hills
As for apartments for the same period, the top areas of interest in February 2021 were:
â–ªï¸ Dubai Marina
â–ªï¸ Downtown Dubai
â–ªï¸ Palm Jumeirah
â–ªï¸ Business Bay
â–ªï¸ Jumeirah Village Circle.
â–ªï¸ The overall monthly index recorded 1.071 and an index price of Dh1,004,652.
â–ªï¸ The apartments' monthly index recorded 1.125 and an index price of Dh944,982.
â–ªï¸ The monthly index of villas/townhouses recorded 0.924 and an index price of Dh1,760,377.