Last year, Dubai’s property market recorded its best sales figures since 2009, totaling Dh151.07 billion. The Dubai real estate market set a record of Dh155 billion-plus in sales in 2009, according to Property Finder data. (In 2020, sales were just over the Dh70 billion mark.)

More than 60 percent of the deals were for ready homes or those purchased on the secondary market, reflecting end-user demand. In Dubai, developers got busy with new launches in the final three months of 2021, making up the rest of the sales.

Price hikes to come?

The luxury end of the market is seeing buyers paying anywhere from 15-25 percent more than what they would have if they bought in 2019-20. The situation could worsen as available upmarket homes dry up. “Investor sentiment remains strong, demand is still very high and supply is dwindling,” said Lynnette Sacchetto, Director of Research and Data at Property Finder. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into the first half of 2022.”

Offplan gains traction

Developers will be encouraged to restart launches with the fourth quarter sales deals. Dubai has seen a 14.53 percent increase in off-plan home sales between the fourth and third quarters as investors return to buying mode. Comparatively, sales of ready and second market deals increased 11.22 percent.

Developers should be concerned about the fact that the value of off-plan sales increased by 25.38 percent, indicating a need for more expensive units. Developers may also be gradually raising their asking prices – and still finding buyers. There is no longer a desire to offer bargains and incentives.

“Despite the fact that many decided to travel for the first time in over a year during the holidays, Q4 didn’t seem to see a slowdown in sales transactions,” said Sacchetto.


Source: In 2021, Dubai property market deliver best sales numbers since 2009 | Property – Gulf News