Off-Plan And Secondary Property Sales In Q3 Reached Their Highest Levels In 12 Years, With Nine-Month Sales Increasing To Dh125.2 Billion.
The value of property transactions in Dubai reached a nine-year high in September. Because of increased demand in the off-plan and secondary markets. The number of real estate transactions increased by 13.34% to 8,649 in September. While the value of those transactions increased by 23.14% to Dh24.42 billion. The highest amount since the peak of the market in 2013. It demonstrates increased investor faith in Dubai’s booming real estate market. Which continues to expand despite some regulatory changes that the government has announced.
According to the most recent data made available by Property Finder, secondary or ready properties saw 4,210 transactions. A significant increase year over year of 30.46% in terms of volum. While existing property transactions saw increase in value of 32.39%, reaching Dh14.66 Billion comparison to Dh11.07 billion in September 2021.
In September, the off-plan market also transacted 4,439 properties worth approximately Dh9.755 billion, an impressive increase of 94.13% in value and 80.23% in volume. The increase in demand across off-plan and secondary markets, according to Scott Bond, country manager for the UAE at Property Finder, is not unexpected given the country’s proactive strategies, alluring laws, golden visa initiative, competitive investment environment, and property pricing strategies.
Major trends and catalysts, such as an influx of high-net-worth individuals and millennials choosing to buy instead of renting their desired properties, will consolidate Dubai’s property market’s dominance, according to Bond.
Record Deals For Nine Months
In the first 9 months of 2022, the real estate market saw sales transactions totaling Dh125.2 billion, exceeding the 2013 total sales value (Dh119 billion). In the past nine months, off-the-plan transactions also hit a record high, with 29,339 overall sales transactions recorded as opposed to 24,077 in 2021, as per Property Finder.
Additionally, the real estate consultancy Core noted that the upward trend in sales prices persisted across districts, with citywide villa sales prices increasing by 16% and apartment prices increasing by 8% on an annual basis. However, it noted that the rate of price growth in the 3Q of 2022 (2% quarter-on-quarter) has somewhat slowed down in comparison to the first and 2Q of 2022 (4% quarter-on-quarter and 6% quarter-on-quarter, respectively) (4% quarter-on-quarter basis).
The head of Research and Advisory at Core, Prathyusha Gurrapu, stated that this year’s market sentiment has been positive overall. The overall increase in financing costs is particularly having an impact on the reasonably priced and mid-market segments. Where some end users are increasingly being priced out, she said. “The prime market is relatively resistant to market risks,” she added. According to Ata Shobeiry, CEO of Zoom Property, Dubai’s real estate maintained its upward trend this year. Because of the strong trend from investors who embraced the government’s business and visa reforms.
Dubai real estate transactions have surpassed the 2013 peak level with 8,649 transactions totaling Dh24.42. Having faced global challenges, this paints a positive picture of the real estate market, according to Shobeiry. Due to the influx of HNWIs, the golden visa program, and other investor-friendly policies, the market “continued its golden run. During the first 3Q, and I believe the 4Q will follow a similar pattern, ending year on strong note.
Record-Setting Q3 Results
Property market experienced its highest secondary, off-plan or ready market sales volume and value in 12 years in Q3 2022. Reaching 25,456 sales transactions valued at Dh69.725 billion. In comparison to the same quarter last year, the July–September 2022 quarter saw a significant increase. In both volume and value of 61.69% and 65.64%, respectively.
Contrasting the secondary or ready market, however, the 3Q of 2022 saw increases of 52.44% in regards of volume and 56.94% in terms of value. Furthermore, off-plan market activity in Q3 increased steadily in volume (74.03%) and value compared to the same quarter in 2021.
The Main Points
- The volume of ready properties or secondary market increased by 30.46% year over year.
- The off-plan market saw a significant increase of 94.13% in value and 80.23% in volume YoY.
- With 25,456 sales transactions totaling Dh69.725 billion in the third quarter, there were more off-plan, secondary or ready market transactions than at any time in the previous 12 years.
- The volume and value of sales transactions increased significantly in Q3 2022 by 61.7% and 65.6%, respectively.