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Dubai property sales hit 8-year high - low interest rates and prices drive demand

Dubai property sales hit 8-year high - low interest rates and prices drive demand

More than $4 billion worth of properties were sold in one month

The market in the emirate recorded its "busiest" month with buyers in the last 8 years. Despite the ongoing COVID -19 pandemic, buyers and investors continue to come to Dubai to purchase apartments and villas.

A total of 6.388 transactions were completed in June 2021 with a total value of $14.79 billion ($4 billion). The last time the industry observed such figures was in December 2013.

Property Finder, Dubai's largest online property analytics platform, reported on July 6 that the number of deals in the year to May had increased by 44.33% and their value by 33.2%.

A total of 15.638 deals were completed in the second quarter of this year, with a combined value of 36.86 billion dirhams ($10.03 billion). Combined with Q1 2021, there were 27.373 transactions with a total value of 61.97 billion dirhams ($16.87 billion).

One of the reasons for the growth is the easing of quarantine restrictions in the emirate in recent months, which has allowed investors and buyers to enter the market with record low prices and lending rates.

For the moment, however, the main interest is in secondary ready-made properties rather than new apartments. 61.5% of transactions in June fell on this type of supply. 38.5% fell on transactions involving off-plan properties.

Low prices and lending rates have encouraged a shift in buyers' attention from renting to buying a home. The UAE's central bank is gradually easing interest rates, while private banks, traditionally happy to lend to high-income customers, are now turning their attention to self-employed borrowers.

Such a shift will take time, however, as at the moment only 20% of residential properties are owned by residents, with the rest being rented out.

In general, buyer interest was spread across villas and apartments in the following areas:

Most villas were sold in The Greens (18.2%), Mohammed bin Rashid City (11.3%), Dubai Hills Estate (5.5%), Arabian Ranches (4.8%), Akoya (4.5%), Dubailand (4.2%), Town Square (3.2%).

Most apartments are sold in Meydan (15%), Jumeirah Lake Towers (9.3%), Dubai Marina (8%), Business Bay (6.8%), Downtown Dubai (6.6%), Mohammed bin Rashid City (6.3%), Jumeirah Village Circle (5.4%), Palm Jumeirah (3.9%).

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