Investor and end-user demand helped Dubai’s property market record its best sales transaction numbers since 2009, totalling Dh151.07 billion for last year. In 2009, Dubai set its highest sales tally ever in real estate, totalling Dh155 billion plus, according to Property Finder data. (In 2020, sales were just over the Dh70 billion mark.)
End-user demand was the single biggest factor driving property sales, with nearly 60 per cent of the deal beings for ready homes or those bought in the secondary market. Offplan made up the rest of the sales, with developers in Dubai getting busy in the final three months of 2021 with new launches.
More price rises?
At the luxury end of the market, buyers are having to pay anywhere from 15-25 per cent higher than what they would have done if they bought in 2019-20. It could get more so as supply of available upmarket homes dries up. “Investor sentiment remains strong, demand is still very high and supply is dwindling,” said Lynnette Sacchetto, Director of Research and Data at Property Finder. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into first-half of 2022.”
Offplan picks up
The fourth quarter sales deals will provide more incentives for developers to restart launches. Between the fourth and third quarters, Dubai has seen a 14.53 per cent rise in offplan home sales as investors get back into buying mode. In comparison, sales of ready and second market deals were up 11.22 per cent.
More pertinent for developers is the fact that the value of offplan sales increased by 25.38 per cent, suggesting that more pricey units are in demand. It could also be that developers are raising their asking prices gradually – and getting buyers despite that. The mood for giving bargains and incentives is no longer there.
“Despite the fact that many decided to travel for the first time in over a year during the holidays, Q4 didn’t seem to see a slowdown in sales transactions,” said Sacchetto.