Dubai records property deals worth $17bn in first half of 2021

Dubai registered property deals worth Dh61.97 billion ($16.87bn) during the first half of 2021, indicating a broader economic recovery in the emirate's real estate market, according to listings portal Property Finder.

The value of deals during the first half was about 56 per cent higher when compared to the second half of last year. Total sales transaction volumes during the six-month period from January to June rose by more than 40 per cent to 27,373, compared with the second half of 2020.

“Fifty-four per cent more apartments were sold in the first half of 2021 compared to second half of 2020 and 49 per cent more villa/town houses,” said Lynnette Sacchetto, director of research and data at Property Finder.

Dubai's property market has registered an increase in deal activity over the past few months due to pent-up demand in the market. The emirate's house prices rose at their fastest pace in seven years in the second quarter of 2021, according to a recent report from Knight Frank.

Average transacted prices increased by about 1 per cent quarter-on-quarter to Dh1,156 a square foot for property in Dubai, the commercial and tourism centre of the Middle East, during the period from April to June this year, Knight Frank said.

Dubai had 17,434 secondary or ready transactions worth Dh46.88bn and 9,939 off-plan transactions valued at Dh15.09bn in the first half, Property Finder data showed.

The average transaction price for secondary or ready property increased to Dh2.69 million in the first half, from D2.48m in the second half of last year, while the average transaction price for off-plan property rose to Dh1.52m from Dh1.32m during the reporting period.

Mohammed bin Rashid City, Dubai Hills Estate, Dubai Land, Nad Al Sheba and the Green Community had the highest transaction numbers in the villas/town house category while Business Bay, Jumeirah Village Circle, Dubai Marina, Jumeirah Lakes Towers and Downtown Dubai were popular with buyers on the hunt for apartments, according to Property Finder.

The UAE property market, which had softened amid the Covid-19 pandemic as with various other real estate markets around the world, has been recovering steadily on the back of supportive government measures, the coming Expo 2020 and growing demand for larger homes amid a rise in remote working.

Government initiatives such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme have also helped to improve sentiment.