Sales of off-plan and secondary properties in Dubai reached a 12-year high in the third quarter, both in terms of volume and value, according to a report by Property Finder.
A total of 25,456 sales transactions worth Dh69.72 billion ($18.98bn) were recorded in the third quarter, marking an increase of about 62 per cent in terms of volume and more than 65 per cent in terms of value, compared with the third quarter of 2021.
There were 4,210 transactions worth Dh14.66bn in the secondary segment and 4,439 off-plan transactions valued at Dh9.75bn in September — a monthly high — as the momentum recorded throughout the year in the Dubai market continued.
“The surge in demand across [the] off-plan and secondary market comes as no surprise, given the UAE’s proactive strategies, attractive policies, golden visa initiative, formidable investment landscape and the property-pricing tactics,” said Scott Bond, UAE country manager at Property Finder.
“Major trends and catalysts, including an influx of high-net-worth individuals and millennials switching from renting to owning their desired properties, will consolidate the prominence of Dubai’s property market.”
Secondary properties recorded an increase of more than 30 per cent in terms of volume and a rise of more than 32 per cent in terms of value in September, on an annual basis.
Meanwhile, off-plan transactions in September were up more than 80 per cent in terms of volume and 94 per cent in terms of value year on year, Property Finder said.
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The strong sales performance in September follows a decade-high reached in August, as the market continues to rebound over the past year on the back of the UAE's broader economic recovery.
The market boom is expected to continue through to the end of the year, with a further boost set to come from the hosting of the football World Cup in Qatar next month.
“While globally, recession fears and stock market concerns loom, the UAE government’s agile response to the pandemic, the successful hosting of Expo 2020 and the raft of demand drivers that were set in motion over the last few years to cement Dubai’s global positioning are bearing results,” property consultancy Core said in its Dubai market update for the third quarter.
“This is evidenced by the influx of FDI [foreign direct investment] and HNI wealth, rising number of licences issued, record transaction volumes and sustained population growth across income segments.”
It said Dubai had a record number of property sales worth more than Dh100 million this year, with 16 to date, including 10 in the third quarter.
A shortage of prime property in the city has been driving up prices.
Ultra-prime waterfront projects such as Bulgari Ocean Mansions and Palm Jumeirah villas were leading this trend, it said.
Earlier this week, it was announced that a record for the most expensive property sale in Dubai had been achieved.
The property was a double Signature Villa, named Casa Del Sole, on Palm Jumeirah, which was developed by Alpago Properties and sold for Dh302m.
It beat the earlier record high sale price of Dh280m, which also came this year.
The property has eight bedrooms and underground parking for up to 15 cars. It has been built over four levels on a plot of 28,000 square feet (2,601 square metres).
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Tonight's Chat on The National
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Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
Correspondents
By Tim Murphy
(Grove Press)
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Review: Tomb Raider
Dir: Roar Uthaug
Starring: Alicia Vikander, Dominic West, Daniel Wu, Walter Goggins
two stars
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Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
