Ready, secondary home transactions this year have significantly outperformed previous years
Residential sales transactions in Dubai in the summer of 2019 are at a four-year high, according to statistics from Data Finder, a real estate insights and data platform under the Property Finder Group.
Analysis of residential sales data in June, July and August 2019 has revealed that, contrary to public perception, the summer months have seen a robust performance for the Dubai housing market. Both the off-plan and ready categories of the housing market have performed well. These include the sales of apartments, hotel apartments, villas, townhouses and residential land plots.
In the summer of 2019, the Dubai housing market outperformed itself both in terms of volume and value of sales transactions compared to 2016, 2017 and 2018, reveals Data Finder.
In terms of total volume, Dubai witnessed 8,833 residential sales transactions in the summer of 2019. This compares with 6,618 similar deals in the corresponding period of 2018, 8,694 deals in the summer of 2017 and 7,066 deals in the comparable timeframe in 2016.
Secondary sales market
The Dubai ready, secondary housing market has had its best run in the summer months this year, compared to the previous three years. It registered 3,801 sales transactions in the summer of 2019, as opposed to 3,156 deals in 2018, 2,596 deals in 2017 and 2,661 deals in 2016.
This implies that more end-users are purchasing homes in Dubai, as a result of affordable property prices, unique developer incentives and attractive payment plans.
“This year especially, we have seen many end-users get on the property ladder, particularly consumers who have been sitting on the fence deciding when was a good time to buy. This, coupled with a large amount of completed supply in the affordable segment, has made buying achievable. Prices today are very attractive and now is a good time to buy and negotiate a very attractive deal,” said Lynnette Abad, Director of Research & Data, Property Finder.
The off-plan market still accounted for the majority of transactions in Dubai, accounting for 5,032 deals in the summer months of 2019. This compares with 3,462 off-plan transactions in the summer of 2018, 6,098 such deals in 2017 and 4,405 deals in 2016.
“Off-plan is still a very lucrative investment in Dubai with attractive pricing and developer incentives such as enticing payment plans and post handover payment plans,” Abad added.
Even in terms of the value of residential sales transactions, the summer months of 2019 witnessed a good performance. Dubai saw homes cumulatively worth AED 14.46 billion exchange hands in June, July and August this year. This compares with residential sales worth AED 12.58 billion in the summer of 2018, AED 13.25 billion in the comparable period in 2017 and AED 12.75 billion in the same timeframe in 2016.
The ready, secondary housing market continued its dominance in the value space as well, with ready homes cumulatively worth AED 7.07 billion transacting in the summer of 2019. The summer of 2018 was also good for ready home sales, with units worth AED 7.7 billion transacting. In comparison, ready homes cumulatively valued at AED 4.7 billion exchanged hands in the summer months of 2017 and similar units worth AED 4.78 billion were sold in the comparable period of 2016.
Dubai’s off-plan housing market too had a relatively good run, clocking sales worth AED 7.3 billion in the summer months of 2019. It had its best run in 2017 with cumulative off-plan home sales worth AED 8.5 billion in the summer of 2017. In comparison, off-plan homes worth AED 7.9 billion were sold in the summer of 2016 and similar units valued at AED 4.88 billion exchanged hands in the summer months of 2018.
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