PHOTO
· Strong villa demand continued in Q3, with prices and rents increasing Q-o-Q by 6.4% and 5.2%, respectively
· In the apartment market, sales prices increased 2% Q-o-Q, while rental rates increased by 0.6%
Dubai: According to the latest research by leading international real estate services firm, Chestertons, Dubai’s pandemic response, overall quality of life and recent visa reforms supported near-record transactions over Q3.
The findings, revealed in the latest Observer: UAE Q3 2021 Market Report, showed that total residential transaction value in Dubai increased by 10% Quarter-on-Quarter (Q-o-Q) to AED 34.11 billion, up from AED 31.02 billion in Q2, and surpassing the AED 31.67 billion achieved in Q4 2013. Completed property sales accounted for AED 20.63 billion of total value, while off-plan sales increased in value Q-o-Q by 48%, to AED 13.48 billion, as developers stepped up marketing activity ahead of Expo 2020.
Chris Hobden, Head of Strategic Consultancy, Chestertons MENA, said: "The success of Dubai's initial COVID-19 response, bolstered by the pace of the UAE's vaccine rollout, has positioned Dubai as the only major global city to remain largely restriction-free over 2021. The resulting stability, complemented by recent visa reforms, comparatively attractive pricing and the emirate's overall quality of life, has continued to draw new residents.
"We have seen notable sales growth in the luxury segment, which we define as properties priced at AED 30 million and above, reflecting Dubai’s clear appeal to high-net-worth buyers internationally.”
Luxury residential sales value totalled AED 2 billion over Q3, bringing total luxury sales value to AED 4.6 billion over the year’s first three quarters. This compares to AED 919 million and AED 1.13 billion during the same period in 2020 and 2019, respectively.
Strong demand continued in Q3 for Dubai's villa sales sector. An influx of new residents and sustained demand from settled expatriates increased market-wide villa prices by 6.4% Q-o-Q, supporting a 17.1% rise above their Q3 2020 average.
Palm Jumeirah, Arabian Ranches and Jumeirah Park saw the highest quarterly uplifts, with prices rising by 8.8%, 8.2% and 7.7%, respectively. Average prices in Palm Jumeirah reached AED 2,225 per sq ft, with Arabian Ranches seeing average prices rise to AED 920 per sqft and prices in Jumeirah Park reaching AED 840 per sqft.
Average values across The Lakes, The Meadows/The Springs and Al Furjan rose by 6.6%, 6.2% and 5.7%, respectively, Q-o-Q. Damac Hills and Emirates Hills recorded more moderate quarterly gains, of 4.2% and 3.7%, respectively, with prices in Damac Hills averaging AED 1,000 per sq ft and Emirates Hills topping AED 1,820 per sq ft.
On an annual basis, all locations witnessed a double-digit rise in prices, with Palm Jumeirah values standing 19.6% above their Q3 2020 average, denoting the most significant annual increase.
Meanwhile, apartment prices in Dubai witnessed a clear uplift, with average values rising by 2% Q-o-Q, with established residential areas typically recording more substantial gains. Downtown Dubai and Business Bay saw the highest quarterly rises, of 5.1% and 5.0%, respectively, with prices for the former averaging AED 1,450 per sqft, and the latter reaching AED 1,050 per sqft.
The Views, Dubai Marina, Jumeirah Lake Towers (JLT), Jumeirah Village Circle (JVC), The Greens and Dubai Silicon Oasis recorded uplifts, with average prices rising by 4.6%, 4.3%, 3.3%, 2.6%, 2.3% and 2%, respectively Q-o-Q.
Dubai Motor City (1%) and Dubai Sports City (0.9%) were more subdued, seeing marginal uplifts, while average prices in International City remained stable, at AED 415 per sqft. Only Discovery Gardens and Dubai Land witnessed price declines, by 1.0% and 4.2%, respectively.
In Dubai’s villa rental market, average rents rose by 5.2% Q-o-Q, with annual rates increasing 12.6%.
“While the increase in villa rents partly reflects a sustained tenant preference for larger space, a trend noticed since the easing of lockdown restrictions, the significant uplift recorded across prime villa stock has been spurred by demand from recent high-net-worth arrivals,” said Hobden.
“We expect the influx of recent wealth to the emirate, along with the ongoing tenant preference for villas, to continue to support rents over the final quarter,” he added.
Palm Jumeirah saw the highest increase in villa rents Q-o-Q, up 9.1%, and annually, at 29.3%. The Springs, The Meadows and Arabian Ranches also notched notable quarterly gains, up 7.1%, 7% and 5.9%, respectively. All other locations monitored saw quarterly uplifts of between 3.3% and 4.4%.
Meanwhile, average apartment rents in Dubai recorded modest growth over Q3, rising 0.6%. Dubai Marina, The Views and Downtown Dubai saw the highest increases of 4.7%, 4.3% and 4.2%, respectively, Q-o-Q. Business Bay saw a more modest increase of 1.4%, followed by JVC at 1.3% and DIFC at 1.2%, Q-o-Q.
JLT and The Greens saw modest quarterly upticks of 0.4% and 0.1%, respectively. Conversely, Dubai Land and Dubai Sports City saw the highest quarterly declines of 2.6% and 2.5%, respectively. All other locations monitored recorded moderate declines within a bracket of -0.4% to -1.3%.
“While a minority of secondary locations may face modest downward pressure over the final quarter, we expect continued improvements in the wider economy, along with a recovery in Dubai’s expatriate population, to support overall demand medium-term,” concluded Hobden.
-Ends-
Chestertons MENA offers a full range of property services, including residential and commercial sales and leasing, investment agency services together with property management, strategic consulting and valuation services. In addition, Chestertons MENA has a very active international sales division, specialising in the sale of prime, off-plan and completed, central London apartments and houses to investors from across the entire MENA region with 34 offices across the UK capital.
With over 200 years of experience, Chestertons is one of the leading international property consultancy firms, in addition to one of the biggest networks of branches in London, Chestertons also has offices throughout Europe, reaching Australia and Singapore and a burgeoning Middle East network with offices in Abu Dhabi, Bahrain, and Dubai.
For more details, please visit www.chestertons-mena.com/
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
