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New research showed that the average prices of real estate sales in Dubai went up by over a third in the last year.
Broker Allsopp & Allsopp reported that average values have increased by 35% since Q2 of 2020 from AED 2,200,000 (USD 599,000) to AED 3,000,000 (USD 816,800). The report found that for the period Q2 2021 prices increased by 4%, compared to the same period last year.
The 15th edition of Mo’asher (Dubai’s official sales price index launched by the DLD) and Property Finder reported that there was the highest total sales transaction values in May of 2021 since March 2017. The total sales transaction values constituted over AED 11.11 billion. Approximately two thirds of all transactions (61%) were based on mortgages while 32% were cash transactions and 7% were deals with developers. 62% of all deals were for completed real estate projects and 38% were for off-plan real estate.
According to Property Finder, as of the end of Q2 2021, the areas in greatest demand, for villas and townhouses, were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Damac Hills and Mohamed bin Rashid City. The most in demand areas for apartment searches were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.
According to the real estate bulletin of DLD – “Real Estate Updates” – 11,387 new investors entered the market, representing 66% of the total number of real estate investors registered since the beginning of the year. The transactions with British, Indian and French buyers were the most active. Moreover, the bulletin showed that 253,959 Ejari contracts were registered in the period from January to May of 2021, 53% of which were new contracts and 42% were renewed contracts.
One of the leading real estate development companies in Dubai, Emaar Properties also reported an increase in property sales. The company had a 250% increase in real estate sales in the first half of 2021 compared with the same period last year.
Average rent in Dubai increased by 2% in the second quarter compared to the previous year and fell 11% compared with the previous three months in the housing rental market in Dubai. Among the most active renters in the Dubai housing market were the British, Indians and Lebanese, and according to the survey, only one-quarter of landlords demanded payment of one check per year.
HSBC and Morgan Stanley praised the rise in property prices in Dubai. HSBC Holdings stated that the growing demand for bigger homes during the pandemic will further expand Dubai’s real estate market, while analysts at Morgan Stanley expect the rally will last for ‘several years’.
