Dubai’s real estate market recorded 3,300 sales transactions worth AED6.74 billion in January 2021, a growth of 15.5 percent in terms of transaction number and 37 percent in terms of value compared to January 2020, according to the 11th edition of Mo’asher, Dubai’s official sales price index.
The index data, which is taken from the base year 2012, base month for the monthly index January 2012, and the base quarter for the quarterly index Q1 2012, shows that Dubai’s real estate market continues its upwards trend. This is due to the proactive measures and incentive packages launched by the Dubai Government to address the effects and consequences of the pandemic.
The trend throughout 2020 was that secondary/ready properties started transacting more, and this trend has continued into this new year. 72 percent of all transactions in January 2021 were for secondary/ready properties, and 28 percent were for off-plan properties.
When looking at the volume of transactions, the secondary market transacted 2,373 properties worth a total of AED5.43 billion, the highest number of secondary/ready properties transacted in a single month since March 2014. In terms of sales transactions, 70 percent were apartments and 30 percent were villas/townhouses.
Q4 2020 was the strongest quarter in 2020 and helped the year recover the most in terms of volume and value, with 11,065 sales transactions worth AED22.07 billion. This quarter kept the momentum going for the year to start strong, and are most likely going to see this going forward into February, where there has already been more than AED3.3 billion in sales transactions in the first week. This included an AED38 million villa in Emirates Hills and a AED25.2 million villa in Jumeirah Golf Estates.
Also, 11.5 percent of all sales for villas/townhouses in January 2021 took place in Nad Al Sheba, followed by DubaiLand (11.4 percent), Meydan (7.5 percent), Dubai Hills Estate (6 percent) and Tilal al Ghaf (4.8 percent). Looking at apartments, 12.4 percent of all sales transactions took place in Business Bay, followed by Dubai Marina (9.7 percent), Jumeirah Village Circle (9.3 percent), Downtown Dubai (5.6 percent) and Palm Jumeirah (5.4 percent) According to proprietary Property Finder demand data, the top areas of interest in terms of searches for villas/townhouses in January 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City, and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, and Jumeirah Beach Residence.
Overall, the monthly Index recorded 1.069 and an index price of AED1,006,979. Apartments’ monthly Index recorded 1.127 and an index price of AED952,825, while the monthly index of Villas/Townhouses recorded 0.922 and an index price of AED1,727,562.