Trend indicates that Dubai real estate is no longer just a playground for the wealthy
Transactions in Dubai’s real estate market are being driven by low-cost properties in 2019, according to statistics released by Data Finder, the real estate insights and data platform under the Property Finder Group.
In a statement, it said that Dubai clocked in 18,858 transactions for properties worth up to $408,319 each from January until September 30 this year. Of these transactions, off-plan sales accounted for 10,989 deals, while the secondary market registered 7,869 deals, it added.
This is a continuation of a trend from last year, when 17,009 properties worth up to $408,319 each were transacted in Dubai during the comparable period.
Property Finder Group explained that this trend indicates that Dubai real estate is no longer just a playground for the wealthy, but that it has something to offer budget-conscious buyers in equal measure. The softening in house prices is steadily making Dubai’s property more affordable to investors and end-users, the company added.
There were 6,888 transactions registered in Dubai for properties valued between $408,319 to $816,793 for the first nine months of 2019; 2,196 transactions for properties valued between $816,793 to $1.36 million; 726 transactions for properties valued between $1.36 million to $2.72 million; and 520 transactions for properties worth more than $2.72 million, it added.
According to the group, off-plan sales accounted for a bigger share of transactions for properties below $816,793 whereas secondary market sales contributed a far bigger share in deals for properties worth $1.36 million and above.
This indicated that both investors and end-users have a preference for less pricey off-plan projects back by post-handover payments, it explained. Off-plan sales in the year to end September have already crossed the tally for the comparable period in 2018, – 16,066 units against 13,003 – while off-plan sales volumes are up 23.6% year on year as investors and end-users take up the best deals in the market.
Meanwhile, demand for ready/newly completed properties remains steady on a year-on-year basis. Data from Property Finder Group shows 13,122 ready units being sold till the end of September against 12,986 for the comparable period last year.
“There are many units set to be completed which fall within the affordable category, therefore when they become available in the market, we should expect to see sales activity in the secondary market continue to increase over the next year,” remarked Lynnette Abad, the director of data and research, Property Finder.
In the off-plan sales, Dubai Hills Estate has emerged as the frontrunner until September 30, with 1,700 transactions registered followed by Downtown Dubai which came a close second clocking in 1,690 off-plan transactions.
Property Finder Group pointed out that new projects were on the radar of off-plan buyers. The top picks for this segment are Dubai Creek Harbour (1,355 off-plan deals), Dubai South (1,303) and Meydan (888).
Established communities saw higher demand for ready units, with Business Bay ranking highest at 1,036 sales in the secondary market, stated the report. Other popular communities were Dubai Marina (942), International City (939), Jumeirah Village Circle (783) and Al Furjan (677), it added.