Dubai’s property market has performed exceptionally well during Q2 2021, registering a growth of 33% and 47% in the number of transferred properties and their value respectively, as compared to the first quarter of the same year.
The measure of year-on-year change is assumed not to be indicative this quarter because the property market performance in Q2 2020 was severely disturbed by the Covid-related lockdown, and the narrated 184% increase in the number of transferred properties since Q2 2020 may seem ordinary and expected. However, when comparing Q2 2021 to the same quarter of 2019 (pre-pandemic), we observe an increase of 77% in terms of volume and 100% in terms of value, this proves a significant growth in the sector that’s beyond recovery from the pandemic impact on the real estate market in Dubai.
June 2021 was a record month for Dubai’s real estate market, with 6,388 properties sold and transferred at a total value of 14.7 billion AED. Therefore, June 2021 became the month with the highest number of sales since December 2013.
During Q2 2021, ready property transactions accounted for 61% of all properties transferred. The secondary market recorded a 38% increase in the value of sold properties as compared to the previous quarter.
As predicted in our previous report, the primary market (off plan) performance has risen extensively during Q2 2021, registering a significant quarter-on-quarter improvement of 78% in terms of volume of transactions and 85% in terms of value.
Palm Jumeirah recorded the highest value of property transfers among Dubai communities for the second quarter in a row, followed by Dubai Hills Estate, Dubai Marina, and Downtown respectively, which confirms the buyers’ appetite for properties in prime locations.
In terms of luxury properties, 254 properties were sold at a price above 10 million AED, with a total value of 4.89 billion AED during the quarter. This corresponds to a 67% increase since the previous quarter and a 370% increase year-on-year in terms of the number of luxury property transactions.
During the quarter, 63% of luxury properties transferred were villas and mansions, as opposed to luxury apartments and penthouses, indicating a clear preference for detached residences among HNWI’s. Palm Jumeirah has led the market, with 48% of all luxury property transactions taking place in the community. It is worth noting that two properties sold were priced above 100 million AED, both of which were located in XXII carat - Palm Jumeirah.
The commercial property sector has also performed well, recording a reasonable quarter-on-quarter improvement of 30% and 42% in terms of the volume and value of commercial spaces sold respectively. The highest number of commercial property transfers has occurred in DMCC’s community JLT, while DED’s business bay has accounted for the highest value of properties sold.
Overall, Dubai's residential property prices have increased by 10.8% quarter-on-quarter. While this reflects a bullish market picture in general, we nevertheless encourage you to do your homework before investing. The current hype in the market is causing some property investors to rush into the market for the fear of missing out with the goal of an early exit. Real estate, on the other hand, is a long-term investment. Remember it is not about timing the market; rather, it is about your time in the market.