Increased 50% QoQ to AED 31.67 billion

Dubai real estate market to the highest level in 7 years during the second quarter

Palm Jumeirah is the only location that witnessed a double digit increase with average prices increasing by 12.4% year-on-year.

archival

Dubai witnessed a remarkable rise in residential transactions during the second quarter of 2021, according to the latest research and reports conducted by Chestertons International, a global specialist in the real estate services sector, in conjunction with continued interest in international buyers, which led to increased sales and accelerated recovery and recovery in the market. .

The results revealed in the report on the Emirates real estate market, for the second quarter of 2021, showed that the total value of transactions in Dubai witnessed a remarkable increase of nearly 50% on a quarterly basis to 31.67 billion dirhams, compared to 20.77 billion dirhams in the previous quarter. The total value of deals reached its highest level since the fourth quarter of 2013, as residential sales in total amounted to 31.67 billion dirhams, while the total transactions amounted to 14,426 units, an increase of 35.48% over the first quarter of 2021. Completed properties 71% of the total transaction value and 59% of the volume in the second quarter of 2021, and off-plan sales did not reach the level of the pre-pandemic period.

villa sales

The report indicated that in the villa sales sector in Dubai, strong end-user demand and continued interest from international buyers supported prices in the second quarter of 2021. As a result, average villa prices increased by 5.7% on a quarterly basis, supporting an increase of 9.1% on an annual basis.

Meadows and Springs witnessed the highest quarterly increase of 6.6%, with average prices reaching 885 dirhams per square foot, up from 830 dirhams per square foot in the first quarter of 2021, followed by the Lakes region, an increase of 6.5%, reaching 1,065 dirhams per square foot, after it was 1,000 AED in the previous quarter, and the Jumeirah Park area witnessed a price increase of 5.4%, while the Palm Jumeirah and Arabian Ranches witnessed an increase of 4.9% on a quarterly basis.

Palm Jumeirah was the only location that witnessed a double digit increase on an annual basis, with average prices increasing by 12.4% on an annual basis. The Lakes and Springs areas also witnessed significant gains of 8.7% and 8.6%, respectively.

Apartment prices

Meanwhile, apartment prices in Dubai witnessed a slight increase, with average values ​​up 0.8% q-o-q, although performance varied by location and prices remained 3.7% below their level in Q2 2020.

The Views recorded the highest quarterly price increase, at 5.3%, with an average price of 1,085 dirhams per square foot, compared to 1,030 dirhams in the previous quarter. and The Greens, a quarterly increase in prices of 3% to reach Dhs765 and Dhs860 per square foot, respectively.

The areas of: Dubai Marina, Motor City, Business Bay and International City also achieved more moderate price increases on a quarterly basis by 2.2%, 1.8%, 1.5% and 0.7%, respectively, while all other locations recorded a quarter decrease. Annually between (-1% to -5.1%) and Dubailand witnessed the largest quarterly decrease by 5.1% to reach 590 dirhams per square foot, followed by the “Discovery Gardens” area by 2.6% to 483 dirhams per square foot.

The areas of Downtown Dubai (Downtown), “The Views”, “The Greens” and Business Bay witnessed an annual increase in prices by 4.4%, 3.3%, 2.9% and 0.3%, respectively, with lower prices In all other locations between (0.2% and 12.4%) on an annual basis.

Palm Jumeirah witnessed the highest increase in villa rents by 3.9% on a quarterly basis, followed by Jumeirah Golf Estates, Victory Heights and The Lakes, which recorded increases of 3.4%, 3.1% and 3%, respectively. All other sites have quarterly increases that ranged between 1.6% and 2.3%.

Average rents

Meanwhile, average apartment rents in Dubai recorded a slight decrease during the second quarter, coinciding with continued tenant preference for villas coupled with prolonged oversupply, which led to a decrease in pressure across secondary locations. 8.7% from its level in the second quarter of 2020.

However, Downtown Dubai recorded a slight increase in average rents by 1.7% on a quarterly basis, followed by Dubai Marina (Dubai Marina) with 1.5% and Jumeirah Lakes Towers with 1.1%.

The Dubai International Financial Center recorded the highest quarterly decline at 3.4%, followed by "Discovery Gardens" at 2.8%.

And both: Dubai Silicon Oasis and Dubai Land recorded a decrease of 2.5% on a quarterly basis.

record levels

Chris Hobden, head of strategic consulting at Chestertons Middle East and North Africa, said: “With residential transactions approaching record levels, increasing international interest has played a major role in this, in conjunction with the success of Dubai’s handling of the (Covid-19) pandemic to support demand after the closure. From the buyers derived from the launch of new visas, the quality of life in the emirate and the relatively attractive prices.”

"We have seen a clear improvement in the real estate market among UAE residents this year, coupled with the desire to buy ahead of the expected price increases, along with favorable mortgage rates and generous developer incentives, and this is what stimulates sales," Hobden added.

He continued, "The rise in villa rental prices is primarily due to tenants' continued interest in land ownership, as real estate agents reported that there has been a noticeable increase in inquiries about villas since the easing of social distancing restrictions last year."

"We expect villa rents to outperform the upper average residential over the coming months, as work-from-home policies continue across the private sector, even if on a part-time basis," Hobden said.

He added, "While we expect apartment rents to face continued pressure in the medium term, the clear interest in the remote work visa for the UAE, along with the recovery of the economy and the acceleration of the recovery should work to support demand."

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