Such indicators were last recorded in Q2 2014
The Dubai villa sector continues its upward trend in Q2 2021. The main interest for buyers and investors is in the finished property segment.
Villas account for 13% of the overall residential real estate market, with a growth of 7% quarter-on-quarter and a growth of 6.3% year-on-year. Dubai's main districts recorded an annual growth of 10.3%, offsetting losses in 2020, according to consultancy ValuStrat.
The agency's report showed that the number of transactions in June 2021 increased by 68% compared to May. Sales of finished properties increased by 75.5% compared to the previous month. The number of contracts for the purchase of off-plan properties (Oqood) increased by 59.5% (off-plan projects are those that are in the construction or design stage).
According to ValuStrat, sales in April-June reached 7.500, breaking a record for both the previous quarter and every other quarter since 2010.
The purchase price for a square foot exceeded $2,720, with the highest increases recorded in Arabian Ranches (10.3%), Jumeirah Islands (9.1%), Dubai Hills Estate (9%), The Lakes (8.2%), Moudon (7.7%) and Meadows (7.2%).
Haider Tuaima, head of property analysis at ValuStrat, notes that growth in the villa sector is coming from the more expensive high-end segment, located in developed cottage communities and clusters associated with Dubai's downtown areas. High demand with low supply is allowing sellers to aggressively increase property prices.
The Property Finder platform reports that the real estate sector has recovered by more than 324% since the start of the coronavirus pandemic.
Prices of flats rose 1.7% quarter-on-quarter. This is behind the growth in villas and is still a 4.8% decline from last year.
The best performing apartments in Q2 2021 were those in Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai and The Views.
Palm Jumeirah, International City, Jumeirah Beach Residence, Al Furjan and Al Quoz Fourth recovered their losses in 2020.
Unlike villas, off-plan properties still play an important role in the residential market. Properties under construction accounted for 42% of transactions - apartments by Emaar, Azizi, Nakheel and Damac became the top sellers.