Dubai’s real estate market on steady upward curve, says report
JEDDAH, July 13, 2021
Dubai’s real estate market is on a steady upward curve, with rates appreciating especially in the sales segment amid the pandemic, according to UAE property portals Bayut & dubizzle.
Prospective buyers have turned to Jumeirah Village Circle (JVC), Akoya Oxygen, Dubailand and Jumeirah Lake Towers for affordably-priced apartments and villas, while HNW investors have favoured established communities such as Dubai Marina, Downtown Dubai and Arabian Ranches, stated the portals.
Newer gated suburbs such as Dubai Hills Estate have also grown in popularity during H1 2021, they added.
According to Bayut, Dubai’s rental market has largely seen minor decreases under 10% in asking prices for affordable apartments, while luxury properties have experienced increases up to 13%.
The affordable villa segment has seen rental rates remain largely steady in H1 2021, while the luxury market has observed a growth between 5% to 21% in asking rents.
Tenants working within a tighter budget have shown a preference for Jumeirah Village Circle (JVC), Al Nahda, Mirdif and Akoya Oxygen, while Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha have been most popular with high-income renters searching for luxury apartments and villas, it stated.
According to data released by the Dubai Land Department, 16,558 sales transactions for residential properties worth AED 24.7 billion were recorded in Dubai in the first half of the year.
Transactions for ready properties came out ahead in H1 2021, accounting for 59% of total residential sales. This could be attributed to the growing demand from end-users looking to transition to homeownership or upgrade their homes, it added.
Dubai-based developer Emaar Properties had reported property sales surging by 250% in the first five months of 2021 as opposed to the same period last year, while the Dubai Land Department recorded a 221% growth in the value of sales transactions in May 2021, compared to May 2020.
Bayut & dubizzle’s comprehensive report reveals that Dubai’s luxury apartment segment has recorded impressive growth in H1 2021, with sales prices appreciating across all popular communities.
According to the duo, Dubai Marina has continued to be the long-standing favourite for luxury apartments for sale. The average sales price-per-square-foot for apartments in Dubai has increased by 7.11%, rising from AED1,160 in H2 2020 to AED1,242 in H1 2021.
Downtown Dubai and Business Bay have also seen average price-per-square-foot for apartments rise by 7% and 6% respectively, while Jumeirah Beach Residence and Palm Jumeirah have recorded increases around the 20% mark, pointing to the sustained demand for luxury waterfront homes.
When it comes to affordable apartments, Jumeirah Village Circle has retained the top position among prospective buyers, stated the portals.
Apartments in Jumeirah Village Circle have experienced a slight dip in sales price-per-square-foot in H1 2021, going from AED 839 to AED 812. This could be attributed to sellers keeping prices competitive as more projects are handed over in the area, such as Bloom Towers.
The report said Jumeirah Lake Towers, Dubai Silicon Oasis, Dubai Sports City and International City have all generated interest for reasonably priced apartments. These popular neighbourhoods have seen sales prices remain stable or increase up to 6%, it added.
On villas, Bayut & dubizzle’s report stated that luxury villa communities have seen sales prices appreciate across the board in H1 2021.
The family-friendly development of Arabian Ranches has remained the firm favourite for upscale villas in the first half of 2021. The price-per-square-foot of villas for sale in Arabian Ranches stands at AED 1,088, up from AED 917 in H2 2020, it stated.
The up-and-coming gated community of Dubai Hills Estate has also garnered significant attention from buyers and investors, with the average price-per-square-foot increasing by 14% to AED 1,203 for villas.
According to the report, the other ultra-luxurious residential developments such as Palm Jumeirah and Jumeirah Golf Estates have also recorded impressive growth in sales prices for villas around the 18% mark, averaging at AED 2,623 and AED 1,207 respectively.
In H1 2021, Akoya Oxygen overtook Jumeirah Village Circle to become the most popular location among prospective buyers for affordable villas, pointing to the growing popularity of suburban developments.
The price-per-square-foot for villas for sale in Akoya Oxygen has remained steady in the first half of the year, averaging at AED 557, it added.
Haider Ali Khan, CEO of Bayut & dubizzle and Head of EMPG Mena, said: "Since the beginning of 2021, there have been growing signs that the Dubai property market is on a steady upward curve, with prices appreciating especially in the sales segment. Most real estate agencies have also confirmed this by sharing the outstanding results of their H1 performance."
"In fact, if we look at the transactional data from the Dubai Land Department, it’s clear that interest and conversion are both high, with the percentage of transactions going up by an impressive 200% in May 2021 compared to the same period last year,” he added.-TradeArabia News Service
