Dubai: There is definite evidence of improving momentum in the Dubai real estate market. The past 12 months have seen the maximum volume of transactions for this timeframe in the history of Dubai real estate, according to publicly available government data analyzed by Data Finder, the real estate insights and data platform under the Property Finder Group.
Dubai registered a total of 44,590 overall real estate transactions from November 2018 until November 2019. This is the highest transactional volume for any 12-month period in the history of Dubai real estate since sales transaction data was made publicly available.
A total of 36,799 residential properties have been sold in Dubai from January until November 30 this year, according to publicly available government data. This is the second-highest since 2017 when 37,338 residential units were sold in total. However, when December transactions are added, it is likely that 2019 will hit a 10-year record for the volume of residential properties sold.
Property Finder also recently reported that November property sales in Dubai had hit an 11-year high of 5,037 deals, up from 4,774 deals in October and 4,007 transactions in September. All these are indications that the Dubai property market is gearing up for an upturn ahead of Expo 2020.
The spurt in transactional volumes since September 2019 can be attributed to the positive impact on market sentiment following the formation of the emirate’s Higher Real Estate Planning Committee, which has been set up to come up with a longer-term plan for the future of the sector.
Value of transactions
Even in terms of the value of real estate transactions, November 2019 has been the best so far this year, with deals worth AED9.27 billion registered in Dubai. The second best month so far this year was February, with property transactions worth AED 8.71 billion registered in Dubai, according to Data Finder. This was followed by October, which registered transactions worth AED 8.68 billion.
The lowest so far was August, which clocked in only property deals worth AED 4.27 billion. This can be attributed to the general transactional lull during the summer months.
Cumulatively, sales transactions worth AED 76.6 billion have been registered in Dubai until November 30 this year, according to publicly available government data. This excludes mortgage transactions, land grants and other transactions.
The increasing sales momentum is an indication of increasing consumer confidence in the market. This comes on the back of declining property prices, an excess amount of supply in the market, favourable payment plans from developers and low-interest rates from mortgage providers. All these combined are driving confidence among buyers to invest in Dubai property a few months ahead of Expo 2020.
“I believe we will continue to see transactions rise month on month going into 2020 and see a nice mix of investors and end-users purchasing property in Dubai. Prices should also start to stabilize as we move into H2 of 2020,” says Lynnette Abad, Director of Research and Data, Property Finder.
Reforms initiated by the government and the UAE Central Bank have also boosted demand. New regulations, such as the 10-year Gold Card, retirement visa, property purchase visa, and the Mollak system to streamline service charges have been welcomed by end-users and investors alike. The decision to reduce the early settlement fee for mortgages and remove the maximum age to repay mortgages have also met with a positive response.
(Source: Zawya)
