Real estate market sets new records as prices continue to climb in Q3

Much of the increase in activity over the past twelve months has been focused on villas and townhouses, with those who can afford it opting for larger properties with outdoor space. Villa prices in privileged communities have seen substantial increases, while apartment price increases have been lower than villas over the past year, many privileged areas have seen double-digit growth, Palm Jumeirah being in the lead again with a 26% increase.

However, there are signs that the pace of recent price increases is starting to slow as the dynamics of supply and demand change in response to recent price increases. Richard continues: “After 12 frantic months, many brokers felt in September that the market was stopping to catch its breath. While a few months ago a seller could ask for 15-20% more than the last sale in their community, buyers just weren’t biting at that kind of increase. As a result, motivated sellers have adjusted asking prices accordingly, and when they do, demand is plentiful.

But do I think that signals that prices have peaked? Absolutely not. The recent UBS Real Estate Bubble Report placed Dubai as the world’s most popular real estate market. With a global audience reinvigorated by Dubai right now, I expect prices to continue to rise for the foreseeable future, albeit at a slower pace than last year.

Main conclusions:

Residential sales

The Dubai real estate market continued to set new records in the third quarter with 15,406 transactions recorded by the Dubai Land Department (DLD), 81% more than in the third quarter of 2020 and 48% more than in the third quarter 2019. time on the market, with a lot of activity on the off-plan and secondary markets.

Total transactions for the year are now 74% higher than in 2020 and 51% higher than the same period in 2019, before the pandemic. The rise in the value of goods sold in the third quarter exceeded transactions, rising 128% year on year, reflecting price increases that have been recorded in many areas since the market bottomed last summer.

Completed villa transactions are up 105% compared to the same period last year, while the apartments sector has also seen a rebound with a 96% increase in volumes compared to Q3 2020.

Villa prices in prime communities have seen substantial increases from their record lows last summer. Palm Jumeirah (55%), Jumeirah Islands (54%) and Emirates Living (52%) are leading the way, as buyers, mostly end users, sought lifestyle purchases in established communities.

While the rise in apartment prices has been lower than that of villas over the past year, many prime areas have seen double-digit price growth, with Palm Jumeirah again leading with a 26% increase. . Price increases observed in the apartment sector were less uniform than in the villa sector, with some communities such as Discovery Gardens (-2.45%), Dubai South (-12.9%), Silicon Oasis (- 8.05%) and International City (- 5.67%) have all seen prices drop in the past year.

While the third quarter of 2020 was dominated by domestic end-user demand following the foreclosure, the third quarter of 2021 saw a shift in the market towards investors, both local and international. Among new deals closed at Bettehomes in the third quarter of 2021, 62% of successful buyers identified as investors, up from 51% a year ago.

Residential rental

Buyers looking to retrofit their homes but are priced out of the current secondary market are considering new developments with lower prices and great payment plans offered by many developers. Buyers in Dubai are certainly turning more to off-plan investments, with the number of off-plan transactions dropping from 39% to 45% QoQ. Transactions are expected to reach the pre-pandemic level of 57% recorded in the third quarter of 2019.

At Betterhomes, leasing transactions are up 21% over the year, and 6% over the summer months. While many new tenants entering the market will look to well-established apartment communities such as Downtown Dubai, JBR or the Marina, there are a growing number of wealthy professionals and business owners who are moving to Dubai, which has increased the number of rentals for villas with more than 5 bedrooms to 63%.

In September, Betterhomes recorded its highest ever annual rental contract, a villa in Emirates Hills rented at AED 1,850,000 to an expat recently arrived in the United Arab Emirates.

When it comes to apartments, the most popular communities among Betterhomes tenants were Dubai Hills Estate, with the highest number of deals, followed by Dubai Marina, which typically ranks first when it comes to leads and tenant deals. . The most sought-after villa community among renters in Q3 2021 is The Springs, followed by Al Barsha and Jumeirah.

BETTERHOMES LLC

Founded in 1986, Betterhomes is one of the oldest and largest real estate companies in Dubai. It is one of the UAE’s most recognized real estate brands, attracting thousands of buyers, sellers, tenants and owners every month, and offers a wide range of properties across the UAE, from studios to spacious villas. as well as a variety of commercial spaces. The company covers all aspects of the market from residential and commercial sales and leasing to property management, off plan and short term rentals. With more than 200 community specialists in 4 branches in Dubai and Abu Dhabi, Betterhomes has an excellent average satisfaction score of 9.6 out of 10 by its customers on Trustpilot. For more information, visit www.bhomes.com

-Ends-

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© Press release 2021

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