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Dubai’s property market has just scored its busiest month in about eight years, as buyers continued to snap up villas and apartments despite the ongoing pandemic in June, the latest data showed.
A total of 6,388 deals worth 14.79 billion dirhams ($4 billion) were made in Dubai in June 2021, the highest since December 2013, Property Finder said in a report on Tuesday. Transactions for the month were up by 44.33 percent compared to May 2021 in terms of volume and up 33.2 percent in terms of value.
Total deals for the second quarter of the year reached 15,638, with a combined value of 36.86 billion dirhams, bringing the year to date total to 27,373 transactions worth 61.97 billion.
Demand for homes in the UAE has been rising since COVID-19 restrictions eased last year, as buyers take advantage of record-low pricing and interest rates, and favourable loan-to-value ratios (LTV).
“[The increase in demand] is driven by affordability, as prices reached 10-year lows, record-low interest rates, LTV up to 85 percent, improved market sentiment due to proactive initiatives made by the government to limit supply and encourage demand, plus the excellent management of the COVID-19 crisis as the UAE is among the top countries when it comes to vaccination programs,” Haider Tuaima, head of real estate research at ValuStrat, told Zawya.
Buying activity, however, is still concentrated in the secondary/ ready market, representing 61.5 percent of the property deals in June alone. Off-plan property accounted for 38.5 percent of the transactions.
“The trends this year have certainly kept us on our toes, with month-on-month increases and record-breaking months for sales transactions, high investment demand from residents and foreign investment and property prices increasing across prime, popular communities. It has been a dynamic market to say the least,” said Lynnette Sacchetto, director of research and data at Property Finder.
Among villa buyers, the Green community emerged as the most popular location last month, accounting for 18.2 percent of the deals made in June, followed by Mohammed Bin Rashid City (11.3 percent), Dubai Hills Estate (5.5 percent), Arabian Ranches (4.8 percent), Akoya (4.5 percent), Dubai Land (4.2 percent), Arabian Ranches (3.8 percent) and Town Square (3.2 percent).
For apartment buyers, Meydan was the popular choice, representing 15 percent of the sales, followed by Jumeirah Lakes Towers (9.3 percent), Dubai Marina (8 percent), Business Bay (6.8 percent), Downtown Dubai (6.6 percent), Mohammed Bin Rashid City (6.3 percent), Jumeirah Village Circle (5.4 percent), Palm Jumeirah (3.9 percent), Jumeirah Beach (3 percent) and Dubai Harbour (3 percent).
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021
