Since H2 of 2020, we have seen records broken in certain segments of the real estate sector and in March 2021, we saw bigger records broken. According to Data Finder, the real estate insights and data platform under the Property Finder Group which monitors transactions on a daily basis, March 2021 had 4,643 transactions worth AED10.93 billion, 22 per cent more than February 2021 in terms of volume and 47percent more in terms of value.
Q1 2021 had 11,757 transactions worth AED 25.15 billion. In total, Q1 2021 had 6 per cent more real estate transactions than Q4 2020, 16 per cent more transactions for secondary properties and 7 per cent fewer transactions for off-plan properties. When compared to Q1 2020, Q1 2021 had 15 per cent more total transactions, 70 per cent more transactions for secondary properties and 29 per cent fewer transactions for off-plan properties.
According to Lynnette AbadSacchetto, Director of Research & Data “The increase in the number of transactions for off-plan has been +30 per cent for the past two months which is showing huge growth in investor sentiment and positive market outlook. We have seen developers launch new phases within their existing projects, especially in the villa/townhouse segment, which have sold out within hours. People, end-users and investors alike, are once again heavily investing in the future of Dubai.”
In March, 63 per cent of all transactions were for secondary/ready properties and 37 per cent were for off-plan properties. When we look at the volume of transactions, the off-plan market transacted 1,713 properties worth a total of AED 2.91 billion and the secondary market transacted 2,930 properties worth a total of AED 8.02 billion. Comparing this to February 2021, the number of off-plan transactions in March increased by 37 per cent and the secondary/ready property transactions increased by 16 per cent.
For the month of March, an interesting factor is that the average transaction value for off-plan properties has increased month-on-month by 24.6 per cent and for secondary properties, it increased by 21.5 per cent. The total value of off-plan properties when comparing March 2021 to February 2021 has increased by 70 per cent and secondary properties have increased by 41 per cent.
In the villas/townhouses sector,11.5 per cent of all sales in March 2021 took place in Mohammed bin Rashid City, followed by Tilal Al Ghaf (10.1 per cent), Dubai Hills Estate (9.9 per cent), Nadal Sheba (8.2 per cent) and Rukan (5.8 per cent). Looking at apartments, 10.7percent of all sales transactions took place in Business Bay followed by DubaiMarina (9.3 per cent), Jumeirah Village Circle (8 per cent), Jumeirah LakesTowers (7.6 per cent) and Palm Jumeirah (7.2 per cent).
According to proprietaryProperty finder demand data, the top areas of interest in terms of searches for villas/townhouses in March 2021 were Dubai Hills Estate, Arabian Ranches, PalmJumeirah, Mohamed bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, PalmJumeirah, Business Bay and Jumeirah Village Circle.
For Q1 2021 Mortgage Finder, an independent mortgage consultancy and part of the Property Finder Group has seen the number of mortgage pre-approval applications increase by 85 per cent from Q1 2020 to Q1 2021, and the number of completed mortgages has increased by31 per cent in the same period.
The average loan amount for completed mortgage transactions overseen by the mortgage consultancy has also increased from AED 1.3M in Q1 2020 to AED 2M in Q1 2021.
“This increase in loan amount is due to a number of factors, including the increase in property prices seen in some more established communities, buyers continuing to opt for villa purchases larger properties in general and also the 5 per cent increase in loan-to-values making it possible for first-time buyers to borrow more,” explains Warren Philliskirk, Director at Mortgage Finder.
