Dubai records off-plan property sales transactions worth Dhs4.95bn in Aug 2021
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Dubai records off-plan property sales transactions worth Dhs4.95bn in Aug 2021

Dubai records off-plan property sales transactions worth Dhs4.95bn in Aug 2021

As much as 45 per cent of all transactions were off-plan

Gulf Business

Dubai’s real estate market recorded 2,599 off-plan sales transactions worth Dhs4.95bn in August 2021, the highest monthly value for off-plan properties since December 2013.

Meanwhile, 2,599 was also the highest number of off-plan transactions in a calendar month since November 2019.

The top areas for off-plan villa/townhouses sales transactions were Arabian Ranches 3 (187 units) followed by Villanova (157), Tilal al Ghaf (79), Dubai South (58) and Mohammed bin Rashid City (16). For off-plan apartment sales transactions Dubai Harbour (260 units) had the most sales, followed by Mohammed bin Rashid City (239), Business Bay (219), Jumeirah Village Circle(171) and Jumeirah Lakes Towers(137).

Buyer appetite for higher valued units has also increased with the average transaction price for an off-plan property year-on-year having increased by 53 per cent from Dhs1,246,009 in August 2020 to Dhs1,904,635 in August 2021.

The median price for off-plan apartment sales transactions in August 2020 was Dhs 745,500, having increased year-on-year by 48 per cent to Dhs1,100,000. A 12 per cent increase in the median price for off-plan villa/townhouses sales transactions was also witnessed, having increased from Dhs1,622,000 in August 2020 to Dhs1,817,888 in August 2021.

During 2020, villa/townhouses were in high demand, with several of the major developers, who were in the process of building and completing their developments, deciding to add additional sub-projects consisting of villa/townhouses within the larger projects in H2.

“During the pandemic last year, the off-plan market significantly declined. The average was about 30 per cent of properties sold were in the off-plan segment. Today, we have bounced back to 2019 ratios where secondary and off-plan segments are almost 50/50. This is a clear indication that investors are coming back into the market due to their confidence in the future of Dubai.” says Lynnette Sacchetto, director of research and data for Property Finder.

“With the expo less than two weeks away, I believe the off-plan market will continue to thrive. Looking at completed supply in 2021 as of September, we had a total of a little over 34,000 units completed. In the apartment sector, over 26,000 units were completed and for villa/townhouses over 6,000 units. Now the question is, will there be enough stock available to sell in the off-plan market to fulfill investor demand, especially with foreign investors coming in over the next six months for Expo 2020? ”

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