Real estate agents attributed the growth to waivers on service fees and flexible payment plans
61 billion dirhams of Dubai real estate transactions in 9 months
Dubai real estate witnessed the entry of new investments in conjunction with the price correction.
Archives
picture
The Dubai Land Department, in cooperation with "Property Finder", launched the sixth version of the official sales price index in Dubai, indicating that, last August, it recorded 2,480 sales deals worth 4.72 billion dirhams, bringing the total transactions until the end of August to 20 Thousand and 614 sales deals worth 41.65 billion dirhams.
In addition, data of the department showed that real estate transactions in Dubai (sale and mortgage only) achieved 19.5 billion dirhams last September, bringing the total real estate transactions in Dubai to 61.15 billion dirhams in the first nine months of this year.
For their part, real estate developers attributed to Emirates Today the activity of real estate transactions during the month of September to the facilities provided by real estate developers, exemption from service fees and flexible payment plans, as well as the marketing activity of real estate developers through real estate exhibitions and social media platforms.
The official index
In detail, the Dubai Land Department, in cooperation with "Property Finder", launched the sixth version of the official sales price index in Dubai.
The index is taken from 2012 as the base year, from January 2012 as the base month, and from the first quarter of 2012 separating the base.
The department confirmed, in a statement yesterday, that in August 2020, it recorded 2,480 sales deals worth 4.72 billion dirhams, distributed between 31.5% for sales on the map, and 68.5% for the secondary sector, thus bringing the total transactions until the end of August to 20 thousand and 614 deals. Sale worth 41.65 billion dirhams.
Real estate activity in Dubai is slow in August compared to the rest of the year, but it was an exception for this year, and it performed 2.2% better than last July.
Real estate transactions during last August achieved a growth of 16.7% compared to the same month of last year, in addition to recording a growth in the value of transactions by 60%, compared to the same month of 2019. Last August witnessed an increase of 13.4% in the number of Real estate sales, compared to the same month of last year.
Another notable trend is the change in demand from smaller units to larger ones.
Since the outbreak of the epidemic, the proportion of transactions for sales of one-room apartments has decreased by more than 10%, and studios by more than 34%, while the percentage of transactions for units consisting of 3, 4, and 5 rooms increased by 9%, 20% and 15%, respectively. .
Market sentiment
The department confirmed that when looking at the search trends revealed by the «Property Finder», we can get an insight that reveals the market sentiment.
This can be identified through the keywords used in the searches for rent in August, including "new units" and "free air conditioner".
September's actions
In addition, data from the Dubai Land Department showed that real estate transactions in the emirate achieved 19.5 billion dirhams last September, and real estate transactions were distributed during September between 9.9 billion dirhams of sales and 9.6 billion dirhams of mortgages.
For his part, the real estate expert, Hisham Al-Asaad, said that "the real estate market witnessed momentum from August to September," attributing this activity to several reasons, including the facilities provided by real estate developers on their projects, in addition to exemption from service fees for a period of 10 years, And exemption from service fees at lower rates for other developers, which contributed to stimulating sales.
Al-Asaad considered the facilities related to service fees, a smart plan by some developers, in conjunction with some investors hesitating to make the investment decision due to fear of service fees.
In turn, the CEO of Standard Real Estate, Abdul Karim Al-Mulla, said that “the real estate market witnessed the entry of new investments, in conjunction with the price correction, which created a lot of opportunities for investors, in addition to the exemptions provided by many developers regarding service fees. , In which the competition reached to some developers providing an exemption for 10 years from service fees on some real estate projects, in addition to bearing fees for real estate registration, which are in the range of 4%.
Al-Mulla expected that real estate transactions will gradually increase until the end of this year, in conjunction with the return of real estate marketing movement significantly in the last period, including direct sales through private real estate exhibitions for companies, which re-appeared again despite the effects of "Corona" and social divergence, as well as the trend of some Developers to marketing via social media platforms.
He pointed out that the facilities related to the payment plans had their positive effects, especially in conjunction with facilitated plans by some developers, stressing that the Dubai market witnessed real estate demand "on the scheme", in conjunction with those factors that contributed to the entry of new investments into the sector.
In the same context, the real estate expert, Mohammed Salman, said that “Dubai real estate has succeeded in overcoming the difficult period related to the repercussions of the spread of the pandemic, as all figures indicate a gradual growth of the sector, in conjunction with the increase in the desire for real estate investment by individuals,” stressing that there are factors It contributes to revitalizing the sector, most notably the increase in competition between developers, which reflected positively on prices.
He pointed out that there is a shift in the purchasing map of Dubai real estate, as many investors focus on villa projects, due to the effects imposed by the Corona pandemic on the real estate sector map, as many prefer villas over residential units, because of their advantages related to the presence of large areas. And some companies are turning to remote work.
Transactions for units consisting of 3, 4 and 5 rooms increased by 9%, 20% and 15%.
Follow our latest local and sports news, and the latest political and economic developments via Google news