Real estate review: Dubai recorded deals worth $16.89bln in H1 2021

In the first half of 2021, the Dubai real estate market had 17,434 secondary transactions worth $12.76bln

Dubai marina futuristic buildings. Image used for illustrative purpose.

Dubai marina futuristic buildings. Image used for illustrative purpose.

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The Dubai property market witnessed high transaction volumes in the first six months of the year, registering a total of 27,373 deals, collectively worth AED 61.97 billion ($16.89 billion).

Compared to the last six months (H2) of 2020, the volume of transactions increased by 40.2 percent and the value of transactions by 55.87 percent, according to data from real-estate search portal Property Finder.

In the first half (H1) of 2021, the Dubai real estate market registered 17,434 secondary/ready transactions worth AED 46.88 billion and 9,939 off-plan transactions worth AED 15.09 billion. When compared to H2 2020, secondary transactions increased by 44 percent and the value was up by 56.28 percent, Property Finder said.

Off-plan transactions showed a slightly lesser increase when compared to the previous half year with an increase of 34.02 percent for volume of transactions and an increase of 54.61 percent in value.

Average transaction values for both secondary and off-plan properties have also increased, showing an increase in the average price per transaction.

The average transaction price for secondary/ready properties increased from AED 2.48 million in H2 2020 to AED 2.69 million in H1 2021. The average transaction price for off-plan properties increased from AED 1.32 million in H2 2020 to AED 1.52 million in H1 2021. This shows an increase of 8.53 percent for secondary/ready properties and an increase of 15.36 percent for off-plan properties.

“Fifty-four percent more apartments were sold in H1 2021 compared to H2 2020 and 49 percent more villa/townhouses. The increase was in both segments, and the growth of the entire residential market by approximately 50 percent,” according to Lynnette A Sacchetto, Director of Research & Data.

The top areas of transactions for villas/townhouses in H1 2021 were Mohammed bin Rashid City, Dubai Hills Estate, Dubai Land, Nadd al Sheba and the Green Community. And the most preferred areas by buyers for apartments during the same period were Business Bay, Jumeirah Village Circle, Dubai Marina, Jumeirah Lakes Towers and Downtown Dubai.

Rising demand for villas

House prices in Dubai during the second quarter of 2021 accelerated at their fastest pace since 2014, global property consultancy firm Knight Frank revealed.

The average transacted prices of Dubai properties in Q2 rose by about 1 per cent to AED 1,156 per sq.ft compared to Q1. 

Villas are reportedly seeing significant uptake compared to apartments and townhouses.

"The confidence that has been injected into the economy by the government’s phenomenal response to the pandemic has percolated across the economy; buyers feel more confident about life and are committing to home purchases in increasing numbers," Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, said.

"It’s larger homes – villas – that are seeing the sharpest rebound, with prices now about 17 percent below the last market peak six years ago,” he added.

Knight Frank’s research revealed that Dubai recorded 128 transactions of properties valued at AED 20 million or more between January and June 2021, the highest level since 2015, when 137 deals in this price bracket were recorded. A total of 75 homes valued at AED 20 million or more were sold in 2020.

(Writing by Seban Scaria; editing by Daniel Luiz)

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© ZAWYA 2021

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