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Dubai Property Market Showing Rapid Recovery Signs After COVID-19

2020 was a tough year for the real estate sector in Dubai. Due to the global pandemic, construction work of various projects was halted, prices dropped, and investors showed hesitancy in buying new properties. However, the government, in collaboration with real estate developers, took timely actions and the recovery phase started. And the signs of recovery were quite evident in Q1, 2021.

The trend continued in the second quarter as well, with substantial improvement in both the volume of transactions and prices of properties. New trends have also surfaced as villas are gaining more prominence in the market. The high demand for villas for salein Dubai in the last quarter testifies this fact.

Statistics Speak for Themselves

The second quarter of 2021 witnessed deals for over 15,596 properties. The collective value of these properties amounted to AED 37 billion. The quarter-on-quarter and year-on-year increase is 33.9% and 184%, respectively.

Shedding light on property prices, there has been a noted surge of 3.8%. This is a promising sign hinting at the market recovery, as the world still battles with COVID-19.

Price Trends for Different Property Types in Q2, 2021

The real estate price trends for residential properties in Q2, 2021 indicate that buyers favoured affordable properties falling below the range of 1 million.

Here’s a breakdown of transactions made for properties in different price ranges:

  • Price Range: Below 1 million
    • No. of Transactions: 5,938
  • Price Range: 1 to 2 million
    • No. of Transactions: 4,805
  • Price Range: 2 to 3 million
    • No. of Transactions: 2,182
  • Price Range: 3 to 5 million
    • No. of Transactions: 1,591
  • Price Range: Above 5 million
    • No of Transactions: 1,080

Transaction Volumes and Worth of Different Types of Properties in Q2, 2021

Take a look at the breakdown of the volume and worth of different types of properties sold in Dubai in the second quarter of 2021:

Apartments

Transactions for 10,117 apartments worth AED 15.2 billion were made in Q2, 2021. This shows a growth of 143.8% as compared to last year. When compared to Q1, 2021, a 32.5% growth is noted.  

Villas

As stated above, villas have gained more popularity during the last year because of the growing need for bigger and spacious residences. Leading real estate portals in Dubai, such as Zoom Property,received a higher number of queries as compared to other properties.

Statistics reveal that 2,284 villas were sold during the second quarter. The value of these transactions amounted to AED 5.4 billion. These figures are 275% and 63.1% higher in comparison to Q2, 2020 and Q1, 2021, respectively.

Commercial Properties

Transactions for 657 commercial properties with a collective value of 663.6 million have been recorded in this tenure. This marks a growth of 29.8% and 417.3% on a Q-o-Q and Y-o-Y basis, respectively.

Plots

As per the Dubai property market report for Q2, 2021, deals for 2,538 plots were made with a total worth of AED 15.6% billion. This marks an increase of 20.9% as compared to Q1 of this year, while the growth compared to the same, last time is 320.9%.

Primary vs Secondary Market

Although the figures recorded in the primary market are lower as compared to the secondary market, the former continues to gain more popularity. The gap between transactions made for both these properties with every passing quarter is narrowing.

As per Q2 figures, 46% of the total transactions were made in the primary market. The number of transactions was 6.006k worth 9,158 billion. Speaking about the secondary market, a total of 7.052k transactions were made. The value of transactions for ready properties was recorded at 12.06 billion.

Top Areas in Dubai as Per Q2, 2021 Report

The top spot among the top-performing areas in the Dubai property market was occupied by Dubai Marina with 1543 transactions valuing AED 4020 million. JLT, Jumeirah Park and Jumeirah Islands shared the second spot with 1196 transactions worth AED 1290 billion.

The next spot was taken by MBR City. A total of 1160 transactions were recorded in this area, with their total value of AED 1.74 million. Next, Dubai Hills Estate, with a transaction volume of 1123 and value of AED 4,100, acquired the fourth spot in the list of top-performing areas.

Other than that, Palm Jumeirah, MBR City, Jumeirah First, Island 2, Dubai Marina occupied the top five spots in the list of 5 communities with the most expensive villas in Q2, 2021. These communities also have the costliest villas for rent in Dubai.

A Final Word

With the recovery in progress, it’s expected that prices will be back to pre-COVID levels in a few months. This makes it the best time to buy a property in Dubai.