Off-plan Dubai real estate: over the year, July-to-July, sales and purchases number has quadrupled

Off-plan Dubai real estate: over the year, July-to-July, sales and purchases number has quadrupled

Palm Jumeirah showed itself best, with prices per square meter growing year-on-year from $ 3,713.6 to $ 6,286.1

Off-plan real estate sales (note:real estate under construction) quadrupled in July 2021. Analysts point out that such indicators are evidence of an active recovery in the real estate market in the United Arab Emirates.

Sales figures for July were provided by investment advisory company EFG Hermes.

According to the agency, the total transactions amount in Dubai real estate, excluding those related to the transfer of land, doubled last month. The comparison was carried out year-on-year.

For the indicated year, the growth in the total amount of money spent on real estate amounted to $ 2.9 billion.

Residential real estate is the locomotive of this trend, office real estate continues to lag behind the indicators of the residential sector.

The residential real estate sector has grown by 162%, reaching $ 2.54 billion. In June, the total amount of transactions in the sector was only $ 969 million.

Sales of off-plan real estate, when compared year-on-year, increased by 301%, the total amount of these transactions was $ 912 million, 1,716 properties were sold.

In view of all the data received, July 2021 reached the highest rates in the last 12 years. The Property Finder portal indicates that there were totally 4,384 transactions in the Emirate totaling $ 3 billion.

Residential properties with a large area are of great interest among buyers, as well as objects that provide buyers with personal spaces for outdoor recreation and within walking distance.

The reason for this trend was the massive transition of the working population to remote work. This has led to the need to expand living spaces to turn the home into a workspace.

At the same time, prolonged isolation, fear or basic reluctance to visit public places with a large flow of people make buyers pay attention to properties in the immediate vicinity of which there are all the amenities for a secluded outdoor recreation.

Low interest rates on mortgage loans have led to growth in all price segments of real estate: budget housing, affordable and luxury.

Sales of luxury properties in July 2021 increased by 360% compared to July 2020, bringing the total amount of transactions to $ 729 million.

Best of all, the luxury real estate sector feels in the Palm Jumeirah area. Prices per square meter of luxury real estate for the year showed an increase from 3,713.6 to 6,286.1 dollars.

The Motor City area showed itself the worst. Prices per square meter in the area fell from $ 3,638.2 to $ 1,980.6.

The rental segment feels best in Downtown Dubai and Palm Jumeirah. In Downtown, rental prices for expensive premium two-room apartments have increased from $ 38,146 to $ 50,272 compared to last July.

In general, sales prices for elite real estate increased by 40.3% year-on-year, prices for affordable real estate increased by 26.1%, prices for budget properties increased by 7.1%.

Office rental income declined 65 basis points.

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