6,388 sales transactions worth Dhs14.79 billion recorded in June: DLD - GulfToday

6,388 sales transactions worth Dhs14.79 billion recorded in June: DLD

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The sales transactions in June are 44.33% higher in terms of volume and 33.2% in value compared to May 2021.

Dubai’s real estate (realty) sector has maintained an increasing pace of performance, reflecting the vitality, flexibility and attractiveness of Dubai’s property market by recording 6,388 sales transactions worth Dhs14.79 in June 2021.

This is the highest in value in eight years, specifically since December 2013 according to the 16th edition of Mo’asher, Dubai’s official sales price index, launched by Dubai Land Department (DLD) in cooperation with Property Finder.

The sales transactions in June 2021 are 44.33 per cent higher in terms of volume and 33.2 per cnet in value compared to May 2021.

The base year for Mo’asher is 2012, the base quarter for the quarterly index is Q1, 2012 and the base month for the monthly index is January 2012.

In June 2021 the overall monthly index recorded 1.07 and an index price of Dhs1,009,593, the apartments monthly Index recorded 1.088 and an index price of Dhs904,920, and the villas/townhouses monthly Index recorded 1.013 and an index price of Dhs1,822,343.

In Q2 2021, the overall quarterly index recorded 1.108 and an index price of Dhs1,023,552, the apartments quarterly Index recorded 1.118 and an index price of Dhs927,442 and the villas/townhouses quarterly Index recorded 1.076 and an index price of Dhs1,880,153.

Overview

The results achieved in June 2021, in addition to the number of sales transactions achieved in April and May of 4,824 and 4,426 respectively, made for a great Q2, which had the highest quarterly volume of sales transactions since Q4, 2013, with a total of 15,638 sales transactions worth Dhs36.86 billion, 33.26 per cent more than Q1, 2021 in terms of volume and 46.76 per cent more in terms of value.

This brings the year-to-date total to 27,373 sales transactions worth Dhs61.97 billion. To put this into perspective, 2020 had a total number of 35,041 sales transactions worth Dhs71.87 billion. This confirms the sustainability of the high growth rate in the performance of the real estate sector in 2021.

If we take a deeper dive into the data, and compare real estate sales transactions in both June 2021 and Q2 2021 with similar periods in 2020 and 2019, we see that the market has had significant growth, and COVID-19 was a growth accelerator for the real estate sector.

June 2021 results

Compared to June 2020, June 2021 increased by 173.46 per cent in terms of volume and 204.55 per cent in terms of value. When compared to June 2019, June 2021 increased by 140.87 per cent in terms of volume and 179.13 per cent in terms of value.

In June 2021, 62.2 per cent of all sales transactions were for secondary/ready properties and 37.8 per cent were for off-plan properties.

When we look at the volume of sales transactions, the off-plan market transacted 2,418 properties worth a total of Dhs3.5 billion, and the secondary market transacted 3,970 properties worth a total of Dhs11.29 billion.

Comparing this to May 2021, the number of off-plan sales transactions in June increased by 44.44 per cent and the secondary/ready property sales transactions increased by 44.26 per cent.

According to proprietary Property Finder demand data, the top areas of interest in terms of sales transactions for villas/townhouses in June 2021 were the Green Community, Mohammed Bin Rashid City, Dubai Hills Estate, Arabian Ranches 3, and Akoya.

As for apartments for the same period, the top areas of interest were Meydan, Jumeirah Lake Towers, Dubai Marina, Business Bay, and Downtown Dubai.

Q2 2021

Compared to Q2 2020, Q2 2021 showed an increase of 183.4 per cent for volume and an increase of 237.79 per cent for value of sales transactions.

When compared to Q2, 2019, Q2, 2021 showed an increase of 78.27 per cent for volume and an increase of 102 per cent for value.

In Q2 2021, 61.5 per cent of all sales transactions were for secondary/ready properties and 38.5 per cent were for off-plan properties.

When we look at the volume of sales transactions, the off-plan market transacted 6,025 properties worth a total of Dhs9.17 billion and the secondary market transacted 9,613 properties worth a total of Dhs27.68 billion.

Comparing this to Q1 2021, the number of off-plan sales transactions in Q2, increased by 53.93 per cent and the secondary/ready property sales transactions increased 22.91 per cent.

According to proprietary Property Finder demand data, the top areas of interest in terms of sales transactions for villas/townhouses in Q2, 2021 were Mohammed Bin Rashid City, Dubai Hills Estate, Dubai Land, Green Community and Town Square.

As for apartments for the same period, the top areas of interest were Jumeirah Lake Towers, Dubai Marina, Meydan, Jumeirah Village Circle and Downtown Dubai.


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