Dubai property sales value hits four-year high of Dh11.11bn in May

The emirate has registered 20,989 real estate transactions worth Dh47.19bn this year, according to a new report

The skyline in Dubai. File Photo / Bloomberg

As of December 2020, Emaar has delivered more than 72,000 residential units in Dubai and other international markets. Sarah Dea / The National

Morning fog shrouds residential and commercial skyscrapers in Dubai's Jumeirah Lakes Towers residential area. Bloomberg

Dubai's Marina residential area as seen from The Palm. Reem Mohammed / The National

Residential units seen in Dubai. Satish Kumar / The National

House prices in Dubai, the trading and commercial hub of the Middle East, increased modestly in January, February and March in 2021. Reem Mohammed / The National

Jumeirah Beach Residence in Dubai. Satish Kumar / The National

Dubai Marina. The total property transactions in May rose 205 per cent year-on-year to 4,429, according to a portal. Antonie Robertson / The National

Dubai's downtown area with the Burj Khalifa in the distance. Reem Mohammed / The National

A view of downtown Dubai featuring the Burj Khalifa. Alamy

Dubai’s property sales hit a four-year high of Dh11.11 billion ($3.02bn) last month as the economy continues to recover from the coronavirus pandemic, according to listings portal Property Finder.

This is the highest value of monthly property transactions recorded by the emirate since March 2017, the portal said on Tuesday.

“One indication that Dubai’s real estate market has rebounded is that the average transaction value for a single property has increased 16.77 per cent for villas or town houses and 17.18 per cent for apartments in one year,” said Lynnette Sacchetto, director of research and data.

The UAE property market, which softened due to a three-year oil price slump that began in 2014 and oversupply concerns, is showing signs of recovery as people stuck at home look to upgrade to larger properties amid a remote working and learning trend sparked by the pandemic.

Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.

Total property transactions rose by 205 per cent last month, compared with a year ago, to 4,429 while sales grew by 324 per cent.

“When looking over the past few years, we have not only seen increases since 2020 but from 2019 as well,” said Ms Sacchetto. “To put things further into perspective, we have seen a 36.5 per cent increase in the total volume of sales transactions and a whopping 83.8 per cent increase in the total value of sales transactions when comparing May 2021 to May 2019.”

Secondary or ready homes accounted for 62 per cent of all transactions last month while off-plan property accounted for the rest, according to Property Finder.

The off-plan market had 1,674 transactions worth Dh2.58bn during the month while 2,755 transactions worth Dh8.53bn were recorded in the secondary market.

The top districts in terms of searches for villas or town houses in May 2021 were Dubai Hills Estate, Arabian Ranches, The Palm Jumeirah, Damac Hills and Mohammed bin Rashid City.

The top areas of interest for apartments were Dubai Marina, Downtown Dubai, The Palm, Business Bay and Jumeirah Village Circle.

Dubai's biggest listed developer Emaar Properties said this week that its property sales rose by 250 per cent to Dh10.5bn.

In the first quarter, apartment prices in Dubai increased by 3 per cent from the previous three months while the prices of villas were up 6 per cent during the period, according to a recent report from Asteco.

On an annual basis, prices fell by 2 per cent but villa prices increased by 3 per cent.