Dubai real estate witnessed a best October on record for the past eight years as investors poured Dh13.12 billion in the property sector through 5,352 deals.
In a statement, the Dubai Land Department (DLD) said the year-to-date total sales reached 48,651 valuing Dh177.44 billion, reflecting a 38.34 per cent year-on-year growth in terms of transactions and 63.4 per cent in terms of value during the first 10 months of 2021.
Ata Shobeiry, CEO at Zoom Property, said it was always expected that Expo 2020 is going to impact the Dubai property market, and the tangible results have started to pour in.
“With October 2021 breaking past records, it's evident that the market is eyeing a strong recovery. A higher volume of sales can be expected in the first quarter of 2022 as property prices and demand are witnessing an increase from the end-users as well as from the investors,” Shobeiry told Khaleej Times on Wednesday.
Expo drives market growth
Attributing the significant growth in real estate to Expo 2020 Dubai, the DLD said 60 per cent of all transactions recorded in October were for secondary or ready properties and 40 per cent were for off-plan properties.
“The off-plan market transacted 2,133 properties worth a total of Dh4.4 billion while the ready market transacted 3,219 sales transactions worth Dh8.72 billion,” the DLD statement said, adding that the developers had a total of 3,395 transactions worth Dh8.08 and individual sales accounted for 1,957 transactions worth Dh5.03 billion.
According to the data of the 20th edition of Mo’asher, Dubai’s official sales price index launched by the DLD in partnership with Property Finder, the villa townhouse index increased by 14 per cent over the past six months.
“Since the start of the pandemic, the demand for villa or townhouses has increased exponentially, which led to an increase in their sales, breaking records for the most sold starting in July 2020 and increasing month-on-month basis,” it said.
Ayman Youssef, vice-president, Coldwell Banker UAE, said market was on a down trend since 2015.
“Just before the Covid, we reached very attractive price levels, where many areas were priced below the replacement costs. When the cycle was about to turn around, the Covid pandemic hit the world. It pushed the prices further down,” Youssef told Khaleej Times.
“While there were lots of talks about over supply and uncertainty, the leadership of the UAE and Dubai demonstrated their efficiency by turning a crisis into an opportunity. Dubai was repositioned on the global front because of its vaccination rate, the Covid-19 management as well as Expo 2020, as the ultimate destination for people to come to live, do business invest.
He said investor confidence is on the rise due to new regulations that support foreign ownership of businesses, relaxed civil laws, new citizenship and residency laws, attractive price levels, upside potential and infrastructure.
“We saw a V-shaped recovery along with a flow from new markets and a lot of global interest. This is just the beginning of many good years to come,” he said.
Areas in demand
Damac Hills 2, Nad Al Sheba, The Springs, Dubai Hills Estate and Arabian Ranches were top areas for villas and townhouses in October while for apartments people preferred Dubai Marina, Business Bay,Jumeirah Village Circle, Downtown Dubai and Jumeirah Lake Towers, according to Property Finder demand data.
For off-plan villas and townhouses, people looked options in the Arabian Ranches 3, Tilal al Ghaf, The Valley, Dubai Land and Mohammed bin Rashid City. However, Dubai Harbour, Mohammed bin Rashid City, Dubai Creek Harbour, Business Bay and Downtown Dubai claimed to be top areas for off-plan apartments.