Total volume of transactions in the prime housing market increased by 49% and in Q3 2020 stood at $2 billion compared to $1.3 billion in Q2
Dubai’s prime housing market is witnessing a substantial increase in transactions volume, which is particularly noticeable in the secondary market that has recently doubled its sales.
According to Luxhabitat Sotheby's International Realty’s analysis based on the data from the Dubai Land Department, over 2,297 apartments and 438 villas were sold in Q3 2020, which is 24% higher than in the previous quarter.
Total volume of transactions in the prime housing market amounted to $2 billion, growing by 49%. However, prices per square meter in the segment fell by 10%. In terms of sales, the most successful areas were MBR City, Downtown Dubai and Palm Jumeirah.
Luxhabitat Sotheby's reports, that there has been a significant rise in demand for townhouses and villas as they look more appealing to customers. This is especially true of properties with good outdoor spaces and swimming pools. That is why many buyers are drawn to locations like Palm Jumeirah, MBR City District 1, Arabian Ranches, Al Barari and Dubai Hills Estate.
In addition to that, banks are currently offering low fixed-rate mortgages and higher loan-to-value rates. This has resulted in an increased number of first-time buyers opting for owning a home instead of renting, a choice that seems to have more long-term benefits.
As to Dubai’s prime residential secondary market, sales in Q3 2020 doubled from $735 million to $1.6 billion with prices per square meter falling by 12%. The number of apartments and villas sold in the secondary market doubled, too, from 520 to 1,177 and 188 to 418, respectively. The average price of an apartment in the prime secondary housing market is $500 thousand, while a house can be bought for $1.6 million.
There are not enough new releases in the off-plan segment in Dubai at the moment so people tend to buy property in the secondary housing market that proved to be quite stable. A huge increase in the prime residential markets is another strong tendency. In the nearest future this is expected only to strengthen as Dubai is likely to play a key role in the post-pandemic scenario.