- The Dubai real estate market has grown 260 percent in the past 11 years in terms of the volume of transactions
- There were over 45,000 units completed in 2019, which was the highest amount of units completed in one year over the last five years
Dubai: Dubai registered a total of 41,988 real estate transactions in 2019, according to Data Finder, the real estate insights and data platform under the Property Finder Group. This represents a growth of 20 percent in the volume of registered property sales transactions compared to 34,961 transactions in 2018.
It is also the highest number of sales transactions registered annually in Dubai since 2008 when data became publicly available. There were 11,662 property sales transactions registered in Dubai in 2008. The Dubai real estate market has, therefore, grown by 260 percent in the past 11 years in terms of the volume of transactions. The second highest number of property sales transactions registered in Dubai since 2008 was in 2017 (40,649).
This news comes on the heels of recent reports about the Dubai property market regaining momentum, especially after the announcement of the formation of the Higher Real Estate Committee to rebalance supply and demand, back in September 2019. The committee helped inspire market confidence, with both October and November 2019 seeing record number of transactions - 4,774 and 5,037, respectively.
December 2019 clocked in 2,989 registered property sales transactions. Other good months for property sales in Dubai last year were July (4,234), September (4,007) and May (3,512).
“Going into 2020 and leading up to the Expo, we should continue to see transaction levels increase and prices start to stabilise in certain areas. We have already started to see certain market dynamics shift as a direct effect from Expo and these trends will most likely continue throughout the year,” says Lynnette Abad, Director of Data and Research, Property Finder.
Off-plan vs secondary transactions
There continues to be a preference for off-plan properties, with this asset class accounting for an overall 23,643 transactions in 2019. This could be because of attractive prices and incentives offered by developers such as a waiver of service fees, a wide range of post-handover payment plans, discount on registration charges and commissions, guaranteed rental returns, among others. However, new off-plan launches were considerably down from their 2017 and 2018 levels.
With several potential buyers still unable to afford the downpayment stipulated by the UAE Central Bank to qualify for a mortgage, purchasers are increasingly opting for developer-sponsored payment plans to fund their off-plan properties. This has resulted in several first-time homebuyers getting on the property ladder.
Dubai registered 18,345 transactions in the secondary market last year. With new homes becoming completed thick and fast, developers are forced to come up with rent-to-own schemes and other initiatives to make sure that they are not left with unsold, ready units. This makes it a perfect buyer’s market, with attractive prices, good deals and plenty of options to choose from. However, in such schemes, the price of a property is typically higher than a comparable property currently on the market.
As per Data Finder project and supply data, there were over 45,000 units completed in 2019 which was the highest amount of units completed in one year over the last five years.
Meanwhile, the top 5 areas which witnessed the highest overall property sales transactions in 2019 were Business Bay (3,146), Downtown Burj Khalifa (2,816), Dubai Creek Harbour (2,492), Dubai Hills Estate (2,373) and Dubai South (2,048).
For off-plan sales, the top 5 performing areas in Dubai were Dubai Creek Harbour (2,423 transactions), Downtown (2,088), Dubai Hills Estate (1,949), Dubai South (1,942) and Business Bay (1,811).
On the secondary market, areas that witnessed the most sales were International City (1,342), Business Bay (1,335), Dubai Marina (1,280), Jumeirah Village Circle (1,108) and Jumeirah Lakes Towers (851).
-Ends-
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.
For media enquiries, please contact Anna Lucas Southgate
anna@propertyfinder.ae
+971 55 115 9971
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