Sales market movement index
The real estate market continues to recover, and judging by the statistics, the pace is very impressive.
In October 2020, the Dubai Lands Department (DLD) registered a total of 3,395 sales transactions worth AED 6.93 billion. Total current year: 27,815 deals worth AED 57.43 billion.
Of the October deals, 37.2% were in the off-plan segment and 62.8% in the secondary segment, according to the official Dubai Mo’Asher Sales Price Index, which DLD launched in partnership with Property Finder.
According to Latifa Ibrahim Ahmed, Director of Research and Real Estate Research at DLD, the index is the most transparent and comprehensive tool for assessing market movements.
“We are proud to release this index every month and make it available to researchers and those interested in the real estate market, such as developers and investors,” she said.
Of course, the most important news of the fall is the emergence of strong signs of a recovery in the real estate market and its return to the usual trajectories. In all segments, but especially due to the demand for luxury properties.
What does this mean for investors and developers? An optimistic forecast for entering the New Year 2021.
According to Property Finder, 665 resale or ready-to-move villas / townhouses were handed over in October. This is already 7.2% more than in the second largest month – September 2020, when there were 605 of them.
The same figure is 34% higher than the third largest month in history – July 2020 with 496 transactions.
The last four months have seen the largest number of villa / townhouse transactions, with each month at an all-time high. The consistent growth started after May 2020, when we witnessed 110 transactions, and has grown more than 500 percent since then.
New Trends and Buyers’ Choices
“The prices of villas and townhouses have become more affordable over the years. This makes them an extremely attractive option for real estate investors. Since the pandemic began, many have spent more time at home. This has sparked a new trend – people want more comfort and space with their families and loved ones,” said Lynette Abad, director of research and data for Property Finder.
People also began to migrate from densely populated urban areas to the suburbs. All of this has led to record high volumes of villa / townhouse deals in Dubai in the fall of 2020.
Top five destinations for clients looking for villas or townhouses this period: Dubai Hills Estates, Arabian Ranches, Palm Jumeirah, Damac Hills and Mohammed bin Rashid City.
The top three transfers for apartments and villas included an apartment sold for AED 258 million in Burj Khalifa, then a villa sold for AED 129 million in Dubai Investment Park, and an apartment sold for AED 112 million in Marsa Dubai.