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Properties priced below AED 1.5 million are driving transactions in the Dubai real estate market. Dubai clocked in 18,858 transactions for properties worth up to AED 1.5 million each from January until September 30 this year, according to statistics from Data Finder, the real estate insights and data platform under the Property Finder Group. Of these transactions, off-plan accounted for 10,989 deals and the secondary market registered 7,869 deals.
This trend is a continuation from last year when 17,009 properties worth up to AED 1.5 million each were transacted in Dubai in the comparable period. This indicates that Dubai real estate is no longer only a playground for the wealthy but has something to offer the budget-conscious buyer in equal measure. The softening in house prices is steadily making Dubai property more affordable to investors and end-users.
There were 6,888 transactions registered in Dubai for properties valued between AED 1.5 million to AED 3 million for the first nine months of 2019; 2,196 transactions for properties valued between AED 3 million to AED 5 million; 726 transactions for properties valued between AED 5 million to AED 10 million; and 520 transactions for properties worth more than AED 10 million.
Off-plan accounted for a bigger share of transactions for properties below AED 3 million whereas secondary market sales contributed a far bigger share in deals for properties worth AED 5 million and above, according to Data Finder statistics. This suggests that both investors and end-users have a preference for less pricey off-plan projects backed by post-handover payment plans.
Off-plan sales in the year to end September have already crossed the tally for the comparable period in 2018 — that’s 16,066 units against 13,003. Off-plan sales volumes are up 23.6% year on year as investors and end-users take up the best deals in the market. Meanwhile, demand for ready/newly completed properties remains steady on a year-on-year basis. Data shows 13,122 ready units being sold till the end of September against 12,986 for the comparable period last year.
“There are many units set to be completed which fall within the affordable category, therefore when they become available in the market, we should expect to see sales activity in the secondary market continue to increase over the next year,” says Lynnette Abad, Director of Data and Research, Property Finder.
Popular communities
Dubai Hills Estate has emerged as the frontrunner for off-plan sales until September 30, with 1,700 transactions registered. Downtown Dubai comes a close second clocking in 1,690 off-plan transactions. New projects are on the radar of off-plan buyers. Dubai Creek Harbour (1,355 off-plan deals), Dubai South (1,303) and Meydan (888) were the other top picks for off-plan sales.
Established communities saw higher demand for ready units, with Business Bay ranking highest at 1,036 sales in the secondary market. Other popular communities were Dubai Marina (942), International City (939), Jumeirah Village Circle (783) and Al Furjan (677).##
About Property Finder – www.propertyfinder.ae
Property Finder is the leading property portal in the MENA region and Turkey that facilitates the house-hunting journey for both buyers and renters.
Founded in 2007, the website has evolved over the years as the go-to platform for developers, real estate brokerages, and house hunters to make informed decisions on all things real estate.
A UAE-born start-up, Property Finder has branched out of the country’s shores and operates in a total of seven markets, including Qatar, Bahrain, Saudi Arabia, Lebanon, Egypt, and Morocco, and has a significant stake in the second-largest property portal in Turkey, which has over 6 million monthly visitors and more than 18,000 real estate agents.
US private equity firm General Atlantic led Property Finder’s latest round of investment of a total of $120 million in 2018. This is being used to hire further exceptional talent and investing in its technology and product capabilities.
The property portal employs over 450 employees globally, of which 204 people work out of its Dubai office, and generates over six million monthly visits as a Group.
In April 2019, Property Finder announced the acquisition of JRD Group, following an increased investment in Turkish portal Zingat.
In 2014, Property Finder acquired eSimsar.com, the top property portal in Saudi Arabia, while in 2013, the Group bought out realestate.com.lb, the number 1 property portal in Lebanon, and lastly, the acquisition of Selektimmo, a Moroccan portal, to pad out sarouty.ma, Property Finder’s Moroccan offering, in 2016.
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