Summer 2019 – Dubai’s Real Estate Market Hits Highest Sales in 4 Years
In the summer of 2019, Dubai witnessed its highest real estate sales in 4 years in terms of volume and value of transactions. The real estate market has seen a surge in sales for oﬀplan, ready and short term rental properties.
Apartments, villas, hotel apartments, townhouses, and residential plots have had a robust performance. A total of deals worth AED 14.94 billion were recorded in June, July, and August of 2019. The ready homes sector registered a cumulative sale of AED 7.07 billion during the summer months of 2019.
The secondary sales market has generated 3,801 sales transactions in just the summer months of 2019. Thus, implying that more end-users are now purchasing properties in Dubai. Currently, the off-plan market is in the lead. A total number of 5,032 sales worth AED 7.3 billion has been recorded in this sector.
The property market has recovered at the most ideal time, right before the Dubai Expo 2020. This is the perfect time to invest in property. With long-term payment plans, reduced prices and great bargains, the real estate market in Dubai has attracted investors and buyers from the world over.
Dubai has recently launched a higher committee chaired by Deputy Ruler Sheikh Maktoum Mohammed Bin Rashid Al Maktoum and senior property developers to regulate and create a more centralised strategy for managing the demand-supply ratio of the real estate market in Dubai. This helps in boosting the buyer’s sentiment because it will drive the property market into a stable stage soon. Given that the Dubai market is biased towards buyers, the developers have created interesting incentives based upon the ﬂexible needs of the investors
In August, Savills’ World Cities Prime Residential Index has named Dubai as the 3rd most aﬀordable city for prime property. With a price drop in the last 5-10 years and attractive yields along with long-term payment plans, investors have become more eager to buy property in this global city. The research also showed that Dubai has an average ROI of 4.6% making it the fourth-best global hub for high yield.
Currently, there is a surge in the demand for short term rentals in Dubai. At a growth rate of 10 times more than regular hotels, short term rentals have become an interesting investment in the tourist hub. Between June 2018 to July 2019, short term rental demand has increased to almost 70% while hotels have grown by 7% according to the research done by Air DNA.
Thus, one can conclude that the property market in Dubai is at its ripest and the best time to invest is now. As the Expo 2020 nears, Dubai will witness a greater interest in property transactions from investors and end-users.
Previously the real estate market witnessed very strict payment plans. Currently, the market has become investor-friendly with post-handover payment plans over several years. The recent long term residency permits for property investors for 5 and 10 years is a major attraction for investors from all over the world. Dubai, being a tax-free opportunity, is a haven for anyone looking to invest and reap great returns. The growing real estate market is good news. Summer of 2019 has been the best period in terms of sales and greater growth is expected in the future.