Ready Properties Outperform off-plan Segment in Dubai

  • March 22nd, 2021

According to an authentic source, Khaleej Times, The real estate market of Dubai recorded 3,787 sales transactions that are worth AED 7.43 billion in the month of February. The numbers are 13.8 percent more than the month of January in terms of volume and 8.9 percent more in terms of value.

As per Mo’asher that is the Dubai Land Department’s (DLD) official sales price index, until the end of February, the total of this year’s up is 7,114 sales transactions that is worth AED 14.2 billion. With Property Finder, index data has been taken from the base year 2012. As per that data, in February, 67 percent of overall translations were for secondary/ready properties and 33 percent were ones of the off-plan.

According to a report by it, “When we look at the volume of transactions, the off-plan market transacted 1,355 properties worth a total of Dh1.8 billion, and the secondary market transacted 4,114 properties worth a total of Dh15.3 billion. The number of off-plan transactions in February increased by 39.9 % compared to January 2021.”

The rise in the increasing transactions in the secondary/ready properties as compared to off-plan has been observed from the second half of 2020 and continued in the present year as well. In addition to this, the demand in February month now has the record for the most secondary/ready property sales transaction in one month over the past three years, exceeding the month of January of 2021 statistics.

According to Lynnette Abad, director of research and data at Data Finder, the real estate insights and data platform under Property Finder Group, said in an earlier report, “During the pandemic it was very clear in the search and demand data, which we analyses daily, that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property. This trend was very apparent with end users who were looking to either purchase their first home in Dubai or upgrade to a larger property with more internal and external space.”

Furthermore, As per Asteco’s Q4 2020 UAE Real Estate Report, the area has given an unusual level of flexibility in the face of serious challenges shaped by the COVID-19 pandemic. However, the demand-supply imbalance is likely to deteriorate over 2021 which will be similar to the previous year.

Considering the same source, Khaleej Times stated, “Data Finder said in its report that 10.3 per cent of all sales in the villas/townhouses sector in February 2021 took place in Nad Al Sheba, followed by Dubai Hills Estate (8.3 %), Green Community (8%), Arabian Ranches (4.7 %) and Dubailand (4%). Looking at apartments, 14.9 per cent of all sales transactions took place in Business Bay followed by Dubai Marina (9%), Jumeirah Village Circle (8%), Downtown Dubai (6.5 %) and Palm Jumeirah (6.2 %).”

The topmost areas that were searched for the villas/townhouses in the month of the February of 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City, and Damac Hills. Considering the apartments of the same period, the top most areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, and Jumeirah Village Circle.

Overall, the monthly index recorded 1.071 and an index price of AED 1,004,652. The apartments’ monthly index recorded was 1.125 and an index price of AED 944,982, while the monthly index of villas/townhouses recorded 0.924 and an index price of AED 1,760,377 as per Khaleej Times.