REAL ESTATE Speaks in Numbers!

The Dubai real estate market posted the best third quarter ever in terms of real estate sales value, up 70% compared to the third quarter of 2009. In terms of transactions, this summer has been the busiest year for the real estate market since 2009.

In Q3 2021, 15,959 transactions were recorded. In the third quarter, real estate transaction value increased by 2.3% compared to the same period of the previous year, and real estate transaction value increased by 15%. The rapid recovery from the COVID-19 pandemic, government economic support measures and initiatives such as long-term visas for investors, and the highly anticipated Expo 2020 all contributed to increasing investor confidence in the Dubai real estate market.

Investor confidence is clearly reflected in the number of cash transactions made with Emirates, with 11,463 cash transactions recorded in Q3 2021, an increase of 5.8% (compared to the previous quarter). Dubai Real Estate ticket price (cost per transaction) was AED 2,659,060 per transaction, up 26% year-over-year and 12.6% QoQ. As predicted earlier in our study, the primary market (unscheduled) should increase sales.

During the third quarter, 6,919 unplanned properties were sold for a total of AED 13.48 billion, the highest sales value since 2013. Compared to the previous quarter, primary market volume increased by 15% and 47% in volume and value, respectively. Unplanned sales [accounted for 43% of total Dubai real estate sales during the quarter, closing the performance gap with existing sales (ready real estate). Compared to the same quarter last year, the volume and amount of transactions in the primary market increased by 115% and 212%, respectively. The rapid recovery of the primary market is due to the ability of developers to respond to changes in consumer preferences and initiate new developments based on current market demand.

Although trading volume decreased by 5.7% QoQ, the secondary market performed well, with 9,590 finished products sold for a total of AED 2.76 billion, an increase of 4.6% in transaction value compared to the previous quarter.

The Aftermarket segment grew significantly compared to last year, with volume and value increasing by 68% and 110%, respectively. Palm Jumeirah Island has the highest quarterly real estate transaction volume, followed by Dubai Marina and Dubai Hills Estates. The demand for luxury properties in Dubai continues to grow. There were a total of 439 first-class residential deals of over AED 10 million, resulting in a total of AED 8.44.

This is an increase of 21.9% from the previous quarter and a 232% increase from the same period of the previous year. 4,444 villa/mansion sales accounted for 67.5% of luxury real estate transactions during the quarter, at an average price per square meter. FT 2489 AED and average price per sq. The FT for a luxury apartment and penthouse was AED 4,005. Investor confidence in the market was also prominent in commercial real estate, despite a 18.8% decline in volume. Commerce value increased 45% compared to the previous quarter. It will be interesting to examine the impact of Expo 2020 on Emirates' office and retail sector in the first and second quarter as this sector has huge growth potential.