- 15,516 transactions involving houses priced below AED 1 million last year
- Increase in investor activity involving studios and 1-beds in H2 2019
- Jumeirah Village Circle, International City and Meydan account for most transactions below AED 1 million
Dubai: Dubai registered 15,516 transactions for residential properties priced below AED 1 million in 2019, according to Data Finder, the real estate data and insights platform under the Property Finder Group. Thus, 41 percent of the overall 37,788 residential transactions in 2019 were for units under AED 1 million.
This is a big shift for the Dubai market, which has traditionally seen buying activity focused on the luxury segment. Most sales in the sub AED 1 million market usually involve studios and 1-bed apartments.
Many first-time home buyers often consider a property priced below AED 1 million and Dubai has a range of units available in that price range today. Investors can also pick up good deals for rental investment for this price. Entry prices and down payments at this level are far more affordable, and yields can still reach 8 percent to 10 percent for the right deal.
“In H2 of last year, we started to see an increase in investor activity buying studios and one bedrooms, presumably gearing up toward Expo 2020 with rental income in mind,” says Lynnette Abad, Director of Data & Research, Property Finder.
There has been a definitive shift on the part of developers to cater to latent demand from the mid-income market by building affordable properties below AED 1 million. They also offer competitive payment plans and other incentives to make it more accessible to mid-income buyers.
Communities that clocked in the highest number of overall sales for residential properties priced below AED 1 million in 2019 were Jumeirah Village Circle (1,473 transactions), International City (1,426), Meydan (1,079), Business Bay (976) and Jumeirah Lakes Towers (887), according to Data Finder. The average sale price for a property in JVC was AED 586,389 in 2019.
Dubai registered 9,044 off-plan transactions for units below AED 1 million in 2019. In the off-plan market, Meydan accounted for most deals under AED 1 million (1,040), followed by Dubai Hills Estate (812), JVC (783), Business Bay (768) and Dubai South (689). The average sale price for an off-plan property in Meydan City was AED 605,777.
Azizi Riviera accounted for the most off-plan property transactions priced within AED 1 million in Meydan in 2019. Co-living projects Socio, Collective and Collective 2.0 contributed to the most off-plan deals below AED 1 million in Dubai Hills Estate. In Dubai South, MAG 5 Boulevard, Mag 5 and Emaar South registered the most off-plan deals below AED 1 million.
There were 6,472 deals on the secondary market for properties priced below AED 1 million in 2019. International City accounted for most such deals (1,128) in the secondary market, followed by JVC (690), Al Furjan (507), Dubai Sports City and Dubai Marina (469 each). The average sale price for a ready property in International City was AED 313,173 last year.
England, Spain and Greece Clusters accounted for most sub AED 1 million deals on the secondary market in International City in 2019. Ghalia Constella in JVC and Starz by Danube in Al Furjan also registered hundreds of transactions for units below AED 1 million.
About Property Finder – www.propertyfinder.ae
Property Finder is the leading property portal in the MENA region and Turkey that facilitates the house-hunting journey for both buyers and renters.
Founded in 2007, the website has evolved over the years as the go-to platform for developers, real estate brokerages, and house hunters to make informed decisions on all things real estate.
A UAE-born start-up, Property Finder has branched out of the country’s shores and operates in a total of seven markets, including Qatar, Bahrain, Saudi Arabia, Lebanon, Egypt, and Morocco, and has a significant stake in the second-largest property portal in Turkey, which has over 6 million monthly visitors and more than 18,000 real estate agents.
US private equity firm General Atlantic led Property Finder’s latest round of investment of a total of $120 million in 2018. This is being used to hire further exceptional talent and investing in its technology and product capabilities.
The property portal employs over 450 employees globally, of which 204 people work out of its Dubai office, and generates over six million monthly visits as a Group.
In April 2019, Property Finder announced the acquisition of JRD Group, following an increased investment in Turkish portal Zingat.
In 2014, Property Finder acquired eSimsar.com, the top property portal in Saudi Arabia, while in 2013, the Group bought out realestate.com.lb, the number 1 property portal in Lebanon, and lastly, the acquisition of Selektimmo, a Moroccan portal, to pad out sarouty.ma, Property Finder’s Moroccan offering, in 2016.
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