Villa and townhouse transactions in Dubai hit a five-year high in the first three quarters of 2019, according to statistics from Data Finder, a real estate insights and data platform under the Property Finder Group.
There has been a total of 5,812 villa and townhouse transactions registered in Dubai in Q1, Q2 and Q3 of 2019. This is a five-year high for transactions of this particular asset type when compared to corresponding timeframes since 2015.
The number of cumulative transactions in the first three quarters of 2019 has even surpassed the volume of villa and townhouse deals for the whole years of 2017 and 2018, it added.
This contradicts reports that the Dubai property market is slowing down and proves that demand still exists for the right product type.
This demand could suggest two things: more end-users are choosing to buy property in Dubai and existing homeowners could be making use of the current attractive property prices to upgrade their accommodation to villas and townhouses, stated the report.
“In 2017, we saw the first wave of affordable townhouses hit the market in Reem Mira and they were in high demand. Developers have since followed suit as they realised the trend and demand for affordable stock was clearly there,” remarked Lynnette Abad, the director of Data and Research, Property Finder.
"Contrary to public perception, the summer months witnessed robust transactional activity," she pointed out.
Villa and townhouse transactions in the summer of 2019 again hit a five-year high, with 1,841 deals registered, noted Abad.
The second-best performance in the last five years was in the summer of 2018, with 1,273 villas and townhouses exchanging hands in Dubai. This was followed by the summer of 2017 where 1,167 such units were sold, she added.
In terms of the best month for sales, September 2019 was particularly good for villa and townhouse sales in Dubai, with a total of 965 units sold.
This is the second-best performance for this asset type since 2015. February 2017 took the top spot with 1,079 villas and townhouse transactions registered and July 2019 was in third spot with 838 such units sold.
The third quarter of 2019 also saw impressive sales (2,310) for villas and townhouses, ranking second in terms of performance since 2015. Only Q1 2017 recorded more such unit sales (2,462) while Q1 2019 was in close pursuit (1,777).
According to Abad, the ready units have been the main driver of villa and townhouse sales so far this year.
Dubai has already registered 3,035 ready villa and townhouse sales in the first three quarters of 2019, hitting a five-year high. In comparison, only 2,591 ready villas and townhouses were sold in the corresponding time in 2018 and 1,446 such units in 2017, she stated.
The summer of 2019 was also the best in the past five years for ready villa and townhouse sales, with 877 such units changing hands. This was followed by the summer of 2018 (809) and the summer of 2017 (416).
When looking at quarterly performance, Q2 and Q3 of 2019 ranked second and third respectively for the highest number of villa and townhouse sales since 2015. Q2 2019 clocked 1,048 such unit sales and Q3 2019 registered 1,028 such sales. Q4 2018 ranked first with 1,057 such sales.
April 2019 was the best month for villa and townhouse sales (469) in the last five years, followed by October 2018 (395) and March 2018 (385).
Ready, newly completed villas are seeing heightened interest with developers offering very attractive incentives. This could take the form of stretched post-handover payment plans, service charge waiver, club membership and other discounts.
“There is a good amount of affordable villas and townhouses available in the market today and investors have their choice, both in the ready and off-plan sectors. There are also good deals to be had in the off-plan and ready space as developers are eager to clear their inventory,” Abad added.
Off-plan villa and townhouse sales have also been robust in Dubai. September 2019 saw the second highest number of transactions for this asset type (601) in the past five years, ranking behind February 2017 (927).
The summer of 2019 was also the second best for villa and townhouse sales (964) since 2015, only trailing the summer of 2015 (973).
Dubai has registered 2,777 off-plan villa and townhouse sales cumulatively in the first three quarters of 2019.
The communities of Villanova (395) and Dubai South (314) have seen the highest number of villa and townhouse transactions this year. In the ready space, Wasl Gate in Jebel Ali (219), Emirates Living (101) and Dubai Hills Estate (77) have dominated sales while in the off-plan segment, Villanova (379), Dubai South (309) and Arabian Ranches 3 (247) have accounted for most sales.-TradeArabia News Service
Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).