By: Muhammad Abdul-Wakeel
UAE – Mubasher: A total of 41,988 real estate transactions were registered in the UAE’s Emirate of Dubai in 2019, up 20% from the year before, according to data released by Data Finder, a platform affiliate to Property Finder Group.
That was the highest number of annually registered sales transactions in Dubai since 2008 when 11,662 property sales transactions were registered. Dubai's real estate market has grown 260% in the last 11 years on the basis of the volume of transactions.
“Going into 2020 and leading up to the Expo, we should continue to see transaction levels increase and prices start to stabilise in certain areas. We have already started to see certain market dynamics shift as a direct effect from Expo and these trends will most likely continue throughout the year,” director of data and research at Property Finder, Lynnette Abad, commented.
Off-plan properties remained the top preference for investors, accounting for nearly half of the transactions recorded last year.
That could be traced back to their attractive prices, along with incentives offered by developers including, inter alia, waiver of service fees, a wide range of post-handover payment plans, discount on registration charges and commissions, and guaranteed rental returns.
However, new off-plan launches plummeted in 2019, in comparison with 2017 and 2018 levels.
“With several potential buyers still unable to afford the downpayment stipulated by the UAE Central Bank to qualify for a mortgage, purchasers are increasingly opting for developer-sponsored payment plans to fund their off-plan properties. This has resulted in several first-time homebuyers getting on the property ladder,” Data Finder said.
The number of transactions in the secondary market registered in Dubai reached 18,345 in 2019.
With the fast completion of new units, developers come up with rent-to-own schemes and other initiatives to push up demand.
More than 45,000 units were completed in 2019 which is the highest annual number in five years.
Top active areas
The top 5 areas in terms of overall property sales transactions in Dubai last year were Business Bay, Downtown Burj Khalifa, Dubai Creek Harbour, Dubai Hills Estate, and Dubai South.
For off-plan sales, the top 5 performing areas were Dubai Creek Harbour, Downtown, Dubai Hills Estate, Dubai South, and Business Bay.
Top active areas for the secondary market were International City, Business Bay, Dubai Marina, Jumeirah Village Circle, and Jumeirah Lakes Towers.