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Massive Upsurge in Dubai Realty Sales

Dubai has shown the highest number of sales in the first quarter of 2021 since 2010, according to the data report from Valustrat. The emirate’s real estate market persistently witnessed buoyancy through month by month. It’s been recorded 4,872 transactions valued at AED 11.06 Billion last month of April 2021 in Dubai Land Department bulletins. It was even higher than the previous month March, which was 4,634 transactions that cost AED 10.93 Billion. Total off-plan property sales performance in April has a slight increase compared to March. The weekly report shows the end of April had 1006 real estate transactions amounting to AED 2.04Billion in a total of 722 units, 192 buildings, and 92 lands counted.  The aggregate sum of mortgaged properties in that week was AED 1 billion and the top valuable transaction was AED 205,294,028 worth of an apartment in Al Thaniyah Fifth sold at AED 89,896 per sq. ft value.

Prime areas will continue to show sales increase, says Lynette Abad Sacchetto, director of Research & data. Lynette adds “Investors especially end-users are purchasing properties in all ranges in popular areas, thus, as it continues to see interest and prices are set to increase in the those popular areas as supply is not meeting the demand.” According to Data Finder, comparison between March and April of this year, it presents 3 percent of increase in value and 6 percent rise in the transaction volumes. This is to note another record sales in this year as April alone represents 41 percent in number of transactions and 43 percent of the value of total real estate sales occurred in the first quarter of this year. Saccheto said off-plan transactions has been on the rise through past 3 consecutive months, developers launching new phases for the existing villa/townhouse projects which are most likely to be sold within few hours.

Year to year data explains Q1 2019 average sales value was AED 2.26M while it was considered a normal year, followed by Q1 2020 was AED 2.06M and lastly Q1 2021 is AED 2.12M being top of the chart. The first quarter of this year has shown a major progress in the real estate sales comparing to previous years. 2020 was a tough year though it had a significant amount of sales which was amounted AED 21.33 Billion recorded in property industry data. Tracing back Property Finder data, in the first quarter of the 2019 there were sales total of AED 20 billion with 8,874 in terms of volume in property transactions. Furthermore, there were more than 6000 ready homes sold in the same period of 2021 worth AED 13.5 Billion and AED 5 Billion worth of 3,600 off-plan properties have been sold.

Valustrat data confirms ready homes sales grew 76.1 percent conversely off-plan transactions dropped 30.2 percent. The report further shows comparisons between quarters, ready home sales consistently increased on average of 8.9 percent.  

The median price of apartments sold stood at AED 852 per square foot which was 9.8 percent higher than previous quarter and rose 1.5 percent annually; for villas wise, the median transacted cost is AED 890 per square foot which was as high as 15.3 percent increase quarter on quarter basis. Moreover, 7,294 units were completed in the same period of the year which was already 12% of the projected supply of this year.

There was a 11 percent fall in the rental market last year, however it did not affect the purchasing. Apartment rents dropped 18.4 percent while villas rent increased by 3.9 percent year on year basis. Estimated annual rent cost for 2 bedroom villas is AED 103k, where 3 bedrooms is at AED 150k while 4 bedrooms villa is at AED 212k. For studio apartment the rental per annum is stood at AED 35k, 1 bedroom at AED 52k and 2 bedroom apartment is AED 78k. The data mentions the current Dubai’s residential occupancy is approximately 80 percent.

“2021 Q1 average mortgage application amount was AED 2 Million if we compare it to 2020 Q1 where it was as low as AED 1.3 Million. In January 2021 it hit the all-time record of mortgage for the amount by 2 times. It is partially because of consumer’s interests in buying larger ticket assets” Sacchetto said. It will most likely continue strong on the mortgage world due to a lot of competitive offers, increments, lowest interest rate and lower LTV for first time buyers.

Warren Philliskirk, director at Mortgage Finder, explains “The increase in mortgages volume is because of number of reasons, rather established communities have seen a rise in property prices, then buyers continue their interest in larger properties with larger price tags, also Loan-to-value ration jumped to 5 percent are some of major factors that are encouraging first time buyers to borrow from the bank.

Average value for off-plan properties transactions has risen by 24.6 percent in which secondary market value got increased by 21.5 percent on month-to-month data. In comparison of February 2021 and March 2021, it indicates there is huge surge of 70 percent in total off-plan value also 41 percent increase in total value of secondary real estate market.  

In total sales transactions counted in villas sector in March 2021 topped by Mohamed bin Rashid City with 11.5 percent, Tilal Al Ghaf occupying 10 percent followed by Dubai Hills Estate with 9.9 percent, Nad Al Sheba for 8.2 percent and Rukan representing 5.8 percent.

For apartments segment, Business Bay was the top sales with 10.7 percent, then Dubai Marina having 9.3 percent, followed by Jumeirah Village Circle of 8 percent and Palm Jumeirah representing 7.2 percent of total sales occurred.

Most trending areas in terms of buying for villas in March 2021 were as follows: Arabian Ranches, Dubai Hills Estate, Mohamed Bin Rashid City, Palm Jumeirah and Damac Hills. In account of apartment units popular searches in the same period were Downtown Dubai, Dubai Marina, Business Bay, Palm Jumeirah and Jumeirah Village Circle.

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Dubai’s 5 Most Affluent Areas For Luxury Living

Dubai has documented the second-highest record sales in this year since 2017 February, which values about AED 22.9 Billion of total 6,590 transactions recorded which’s a 40 percent growth in value year on year. According to Dubai Land Department statements, 2021 continues to show positive results in real estate transactions, thereby attracts a high number of international investors and enhances trust in traditional speculations such as property investments in Dubai.

Richard Wain from Betterhomes, says lockdowns and travel restrictions as well as the threatening fiscal policies in many countries have encouraged the high net worth Europeans seeking to invest in Dubai.  He adds “The number and value of purchase records by French, Italian, German and British investors rose by 168 percent from 2020. Palm and other coastal areas are increasingly popular for their ultra-luxury villas and luxury apartments in 2021 Q1″.

Andrew Cummings from LuxuryProperty.com states “We witness surging transactions in particularly prime market which indicates Dubai once again a destination of luxury residential hub”

A villa named On100Palm located in Palm Jumeirah has been sold for a whopping AED 111.25 Million in March 2021 making it the most expensive and most luxurious property to be sold this year. Situated on the heart of Palm Jumeirah, the villa is built with 7 bedrooms, 9 bathrooms, a designer made pool and a garden that is spanning over 20,756 sq ft. It offers spectacular views of Jumeirah Beach Residences and Dubai Marina within the Arabian Gulf skylines.

According to marketplace data by Dubizzle and Bayut, it reveals some of the popular Dubai areas show significant growth in luxury properties sales within the first quarter of 2021. This popularity list is led by luxury properties destinations like Palm Jumeirah, Dubai Marina, Arabian Ranches and Downtown.

Dubai is a land of diverse communities established within a short period of 20 years dedicated to well-off folks willing to spend. Therefore, it is aimed to highlight the most expensive areas in Dubai.

  1. Palm Jumeirah

A well-developed man-made island with a palm tree shape from the aerial view, is one of the most iconic places to rent and buy a property.

Villas

Most of the villas come with floor-to-ceiling windows, Jacuzzi, exclusively arranged parking spaces, infinity pool and several guest rooms for celebrity like living.

XXII Carat Club Villa

This is one example of ultra-luxurious modern beachfront villas, spans about 12,163 sq ft with 7 bedrooms. Apart from astonishing view from the villa, amenities include 4 allocated parking, a gymnasium, a private pool, a reception area, a sauna and a concierge service.

Signature Villa

What’s most captivating about Signature Villa is its guillotine window fully operated by a motor. This 6 bedroom villa with a built up area of 14,312 sq ft offers marvelous amenities such as an infinity pool with an amazing sky view, a couple of Jacuzzis, several parking lots, a steam and sauna room, a fully equipped gymnasium and a barbeque area. This villa’s cost is about AED 82.5 Mil today.

Apartment

Luxurious apartment in Palm Jumeirah

In a dazzling residential building formerly known as Viceroy Hotel and Resort Dubai, affiliated with FIVE Palm Jumeirah Hotel, there are several contemporary 5 bedroom apartment boast an beguiling interior with jaw-dropping views of coastal sides. These lavish apartments feature amenities like ultra-modern fitted kitchen, private garden, also an outdoor jacuzzi. An anterior executive suite rebuilt to a family oriented living unit is a place to be for a memorable experience.

  • City Walk

The community is home to exorbitant venues like high end restaurants, famous brands, and attractions to tourists. The “Western city” within the city resemblance is well known for Fresco themed buildings and vast spacious apartment units. It is no doubt a hot location due to an ease of transportation and access to main spots of the emirate. There are usually 1-4 bedrooms with a maid’s room. The building 6B in City Walk is the most expensive property which is consisted of fully furnished duplexes suitable for families. Modern design features, a sophisticated fully equipped kitchen, floor to ceiling windows and amenities like a pool and a sauna and steaming room, gym and play areas shared amongst a small number of people.

  • Dubai Marina

Dubai Marina is definitely most popular amongst young expats where it’s enthralled with city vibrancy, man-made canal where people enjoy strolling and skyscrapers that offer above the average living standards. Properties in this area are normally high priced, exquisite and have an arrangement of modern designs and finishing. Proximity to Palm Jumeirah makes this trendy neighborhood an interesting place to live in and invest in. Most sought after towers include:

Cayan Tower

3 bedroom penthouse in this Cayan Tower has 180 degree view of the whole Dubai Marina, Palm Jumeirah and Bluewaters Island. The elegant penthouse home will take anyone through a glamorous tour, start from a an open kitchen, a dressing room, a private pool and a balcony with a dreamy view of the city.

  • Downtown Dubai

Investors choose this one of the most visited location because its focal point to other main areas in the emirate. One of the most luxurious properties to buy in Downtown is a tower called 118 Duplex Penthouse. According to real estate data, this is the most valuable and high-end property in Dubai. The building offers only penthouses and apartments hence proposes astonishing interiors such as panoramic windows set floor to ceilings, and terraces with spectacular views of the city. 6-bedroom penthouse spanning area of 11,598 sq. ft. with internal lift, offers its residents live lavishly.

  • Jumeirah Golf Estate

Jumeirah Golf Estates offers all-in for those seeking lavish houses built to elite standard and peaceful lush greenery for families to live extra comfort and safety. Amenities matched with deluxe needs in this haven include a golf academy, a variety of restaurants, and recreational centers for children and parents. One of the most noteworthy properties include:

Wildflower Mansion is an appealing 23,000 sq. ft. mansion that is proficiently built and set up. With its glamorous designs and thorough setup 6 bedrooms, it provides its residents most comfortable living. It also has a breathtaking view of the Golf Course. The mansion has most contemporary interiors fitted with a home heater, a living room jacuzzi, gym, courtyard pool and a guest house.