The record volume of sales in Dubai’s residential property market for Q2 this year has broken records for every other quarter since 2010, according to a report by ValuStrat. Moreover, for the first time in three years, the transacted price per square foot surpassed the AED 1000 mark.
Residential property deals surpassed 7,500 transactions in June this year, and continued to grow at 1.5% to take the ValuStrat Price Index (VPI) to 69 points. Although far from the peak of 112.9 points in June 2014, the VPI has rallied 5.5% since the start of 2021.
Overall, properties by five developers — Emaar, Azizi, Nakheel, Damac, and Seven Tides — dominated residential property sales, according to the report.
Most of the ready-to-move-in homes that were transacted in June were concentrated in International City, Dubai Marina, Business Bay, Green Community West and Dubai Hills Estate. Meanwhile, Meydan One, Jumeirah Lake Towers, Sobha Hartland and Business Bay were popular locations for off-plan properties transacted during the month.
The findings of the report reiterate the ongoing rebound in Dubai’s residential property market, with a demand for bigger homes driving growth in this sector.
VILLAS LEAD RESIDENTIAL PROPERTY SALES THIS QUARTER
The growth in residential property sales was led by the market for villas, which represent 13% of Dubai’s residential market.
Villas saw an increase of 7% in sales for the quarter, with sales in June surging 68% as compared to May sales. Arabian Ranches (10.3%), Jumeirah Islands (9.1%), and Dubai Hills Estate (9%) were top villas this quarter to see the highest annual capital gains.
The Lakes, Mudon, and The Meadows also saw gains of 8.2%, 7.7% and 7.2% respectively.
Further, ready home sales grew 75.5% month-on-month, and off-plan Oqood (online property registration service) registrations grew by 59.5%.
On the other hand, the VPI for apartments didn’t perform as well, growing 1.7% for the quarter. Jumeirah Beach Residence registered the strongest growth from this sector at 1.8%, and was the only apartment property to register positive growth on an annual basis. Palm Jumeirah, Downtown Dubai, and The Views also registered some of the top quarterly gains, but overall, annual values for most apartments were still on the decline.
At the same time, however, apartment properties located in International City, Palm Jumeirah, Jumeirah Beach Residence, Al Furjan, and Al Quoz 4 have been able to recover capital losses from 2020.
Off-plan transactions for residential property represented 42% of deals in this sector, while a majority (58%) were ready-to-move-in homes.
Photo credit: www.luxhabitat.ae/areas/dubai/dubai-hills/, www.dbestlifestyle.com/six-reasons-to-buy-a-villa-in-dubai-arabian-ranches/
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