Dubai real estate posts record Dhs10.98b transactions in April

Sajjad Ahmad, Gulf Today

Dubai’s real estate market continues to achieve record numbers in the number and value of real estate sales transactions, thus enhancing the emirate’s global position as the preferred, and most attractive and flexible real estate investment destination.

The 14th edition of Mo’asher, Dubai’s official sales price index, showed that 4,832 sales transactions worth Dhs10.98 billion were recorded in April 2021, the highest value in four years, specifically since March 2017.

The base year for Mo’asher is 2012 and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012. April 2021 had 4,382 sales transactions worth Dhs10.98 billion, 4.2 per cent more than March 2021 in terms of volume and 0.6 per cent more in terms of value. This brings the year to April total to 16,577 sales transactions worth Dhs36.12 billion.

In April, 70 per cent of the total transactions were up to Dhs2 million, while 23 per cent were between Dhs2 million to 5 million, four per cent were between Dhs5 million to 10 million and 3 per cent above Dhs10 million.

In April 2021, 60 per cent of sales transactions were for secondary/ready properties and 40 per cent were for off-plan properties. Apartment sales also accounted for 69 per cent of the total, and 31 per cent for villa / townhouse sales. When we look at the volume of transactions, the off-plan market transacted 1,934 properties worth Dhs3.09 billion and the secondary market transacted 2,898 properties worth Dhs7.89 billion.

Comparing this to March 2021, the number of off-plan sales transactions in April increased by 12.9 per cent, the highest in 14 months and the secondary/ready property transactions decreased for the first time in 11 months by 0.92 per cent.

Since the start of the pandemic, we have seen apartment prices decline. This is partially due to more affordable housing coming into the market, more supply of apartments completed and an increase in demand shifting to villa/townhouses.

In the villas/townhouses sector, 18.5 per cent of all sales in April 2021 took place in Mohammed Bin Rashid City, followed by Dubailand (10.3 per cent), Dubai Hills Estate (9.4 per cent), Rukan (5 per cent) and Town Square(4.9 per cent).

Looking at apartments, 8.5 per cent of all sales transactions took place in Dubai Marina followed by Jumeirah Village Circle (8.4 per cent), Jumeirah Lake Towers (7.6 per cent), DownTown Dubai (7.3 per cent) and Business Bay (5.4 per cent) according to data from Property Finder.

According to proprietary Property finder demand data, the top areas of interest in terms of searches for villas/townhouses in April 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed Bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.

Overall monthly Index recorded 1.072 and an index price of Dhs1,002,667. Apartments monthly Index recorded 1.097 and an index price of Dhs912,404. Villas/Townhouses monthly Index recorded 0.992 and an index price of Dhs1,768,908.

Think Tank Program: The Property Think Tank Program, organised by one of Dubai Land Department’s most prominent real state promotion initiatives, Invest in Dubai Real Estate, in partnership with International Property Show, was launched in Dubai on Wednesday. The two-day event is considered the most influential real estate event in the Middle East this year, as it caters to a more diverse audience involving various sectors and industries.

The event was attended by Sultan Butti Bin Mejren, Director-General of Dubai Land Department (DLD), and a number of CEOs at DLD, namely: Eng Marwan bin Ghalita, CEO of the Real Estate Regulatory Agency; Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector; Majid Al Marri, CEO of the Registration and Real Estate Services sector; and Mohammed Albidwawi, CEO of the Corporate Support Sector, in additional to a number of department directors at DLD.

During his opening speech at the event, Bin Mejren said: “At DLD, we proceed with our tireless efforts made by all sectors and organisations under our umbrella to achieve our strategic vision to position Dubai as the world’s premier real estate destination and a byword for innovation, trust, and happiness. The real estate sector today is witnessing rapid and remarkable development, and it is crucial that we work together to develop innovative solutions to the various challenges facing the main sectors. This inclusive platform would provide the best opportunities for all participants to explore and propose solutions together, in addition to addressing the most prominent issues, challenges, development initiatives, and innovative ideas in key sectors, including the real estate sector, as well as to educating our global audience while also providing creative views and ideas.”