The growth of the monthly sales transactions and their values leading up to Expo 2020 has been phenomenal, but none as significant as September 2021. Last month not only had the highest value of real estate sold in a single month since December 2013 but also crossed the AED 100 billion mark for the year.
September 2021 had 5,762 transactions worth AED 16.2 billion, making it the best September on record in the past 8 years.
Including September 2021, this brings the year to date total to 43,299 sales transactions worth AED 104.3 billion. In just 9 months, the value of real estate sales transactions is 45.15 percent more than 2020 as a whole and is already the highest yearly sales figure since 2017.
In September 2021, 56 percent of all transactions were for secondary/ready properties and 44 percent were for off-plan properties. When we look at the volume of transactions, the off-plan market transacted 2,530 properties worth a total of AED 5.1 billion. This is the highest value of off-plan sales transactions the Dubai Real estate market has seen in over 8 years. The Secondary market transacted 3,232 transactions worth AED 11.1 billion.
Commenting on the market, Lynnette Sacchetto, Director of Research and Data at Property Finder stated “To date, we have over 104B in sales transaction value which is the highest value since 2017 and mortgage transactions are at an all time high year-to-date, breaking all records, and the year hasn’t ended yet.”
Commenting on the market conditions Sacchetto continued “Many end users who have been in the market to purchase have been priced out of the segments they have been looking in, therefore we have seen recent trends where end users have decided to renovate, upgrade and extend their current properties instead. This has caused a shortage in the market of quality contractors with most booked until mid-2022.
Another interesting, recent trend is in the villa/townhouse segment, where many buyers are being priced out of the bedroom types they are looking for, therefore having to move to the next level below in bedrooms. This has been another reason why prices continue to rise and stay strong in the villa/townhouse segment as the demand is still very prevalent.”
The median price for secondary apartments has increased by 41 percent over the past year and has increased by 20 percent for secondary villa/townhouses. The median price for off-plan apartments has increased by more than 15 percent while villa/townhouses in the off-plan segment have increased by over 10 percent.