DUBAI: The first quarter of 2021 registered the highest recorded number of home sales transactions in Dubai since 2010, according to a market report by real estate consultancy ValuStrat.
Dubai registered sales of more than 6,000 ready homes worth Dh13.5 billion ($3.7bn) and 3,600 off-plan properties worth Dh5bn in the first three months of the year, the report said, report agencies.The volume of ready home sales increased 76.1 per cent on an annual basis, while off-plan sales declined 30.2 per cent. When compared to the previous quarter, ready home sales were up 17.4 per cent and off-plan sales were 8.9 per cent higher, ValuStrat said.
“General market sentiment has improved. This is due to the measures put in place by the government to encourage growth in demand as well as managing oversupply,” Haider Tuaima, head of real estate research at ValuStrat, said.
“The handling of the Covid-19 crisis and the excellent country-wide vaccination programme boosted market confidence, leading to early economic recovery. With banks offering record low interest rates and [a] higher loan-to-value ratio of 80 per cent, getting on the property ladder became more affordable.”
The property market in the UAE slowed in the wake of a three-year oil price shake-up that began in 2014 in addition to an oversupply. The coronavirus-induced economic slowdown further pressured the market in 2020.
However, new programmes such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme to attract foreign professionals to settle in the UAE are expected to support the local real estate market.
The average transaction size for ready homes grew 0.9 per cent quarter-on-quarter, while off-plan homes increased 8.2 per cent to Dh2.3 million and Dh1.4m respectively, the ValuStrat report said.This mirrors the findings of a report last week by listings portal Property Finder which showed that sales of ready villas and townhouses in Dubai jumped more than three-fold during the first quarter as residents sought more spacious homes amid the coronavirus pandemic.
The median transacted price for ready apartments was Dh852 per sq ft in the first quarter, up 9.8 per cent on the prior quarter and 1.5 per cent on the same period last year. For ready villas, the median transacted price was Dh890 per sq ft, up 15.3 per cent on the quarter and 13.7 per cent on last year.