European buyers increasingly ensure the real estate market growth

European buyers increasingly ensure the real estate market growth

Real estate prices in June reached the level of $2,707.2 per square meter, and two-year records were set for the purchase of villas in traditionally popular and developed areas

The residential real estate sector in Dubai continues to recover after a decline in 2020 and in June showed an increase of 2.1%, reaching a price per square meter of $ 2,707.2.

According to the Property Monitor market analysis platform, the Emirate is experiencing a two-year growth record.

Having reached lows in November 2020, real estate prices increased by 12.7% by mid-2021, however, the distribution of growth across the Emirate turned out to be uneven.

So, it is the villas in the traditionally popular areas with buyers that have shown stable growth, while the apartments are still in a rather weak condition.

Last year was the year of the incredible popularity of the off-plan real estate (note: off-plan is real estate under construction) and only by June 2021, ready-made real estate was able to restore its confident superiority, reaching a market share of 62.1%.

However, according to some analysts, ready-made real estate may lose part of this share in the coming months. Such an opinion is based on data on some areas of the market, in which the cost of preliminary transactions with off-plan real estate increased by 51.2% over the month (May-to-June).

The luxury real estate market at the same time reached the level of $2.72 million per transaction and the number of transactions made per month reached 111. It was slightly less than 117 transactions in May.

According to some real estate brokers, the number of transactions on ultra-premium real estate in Q1 2021 was twice as large as in the first half of 2020. Most of the real estate was sold at prices ranging from $ 8.16 to $ 20.4 million (Emirates Hills district).

Most of these indicators are provided by Europeans, who make up an increasing part of the total demand for real estate in the emirate.

Europeans form the basis of the group of end consumers and are looking for residential real estate intended for family life. Such attention from the Western audience provided the market with an annual growth of 10%, according to the Property Monitor analytical platform.

This data is also confirmed by information from various schools in Dubai, which reported a sharp increase in the number of students in the first six months of 2021.

In general, the demand leaders are still Indian citizens, Chinese investors and expats are also gradually entering the market, but at the moment it is European wealthy investors and expats who are helping the Dubai real estate sector recover after the decline of 2020.

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