Dubai’s property sales transactions hit eight-year high, CBRE latest research says

In the first half of the year to the end of June 2021 rose by 69.2 percent.

Residential transactions in Dubai reached an eight-year high in the first half of 2021 due to the increased demand for bigger homes amid the property market's continued recovery from the coronavirus-induced slowdown.

According to CBRE's latest research, total transactions number in the first half of the year to the end of June 2021 rose by 69.2 percent and 46.4 percent, compared to the same periods in 2020 and 2019, respectively.

Average home prices during the period increased by 2.8 percent year-on-year.

'The increase in average prices has, in most parts, been led by villas, where – regardless of the grade of the community – we have largely seen price increases since around mid-2020,' the report said.

'In the apartments segment of the market, the trend has been less uniform, with only a select number of communities seeing price growth in 2020 and, in those locations where we have seen price growth in 2021, in most cases the rate of change has been more constrained in comparison to the villa market.'

Property market of UAE because of a three-year oil price slump that began in 2014. The market has also been affected by oversupply and the COVID-19 pandemic.

However, the market is steadily rebounding as people upgrade to larger homes with outdoor amenities amid a rise in remote working model.

Economic support measures and government initiatives, including residency permits for retirees and remote workers and the expansion of the 10-year golden visa program, have also helped to improve sentiment.

Secondary market transaction volumes in Dubai jumped by 148.4 percent while off-plan transaction volumes had a more muted rise of 13.4 percent over the period, CBRE reported.

New supply coming to the market also remains lower in Dubai, which is helping the recovery of the property market.

18,616 units were delivered over the first half of the year and additional 37,466 are expected to be delivered over the course of 2021. Early estimates in 2021 had forecast the delivery of 83,000 units this year.

According to CBRE About 19,056 new units were launched this year, which is the lowest since 2012.

Residential prices in Abu Dhabi increased by 2.4 percent in the first half of 2021.

Apartment prices grew by 1.5 percent to USD 2,734 per square meter on average. Average villa prices increased by 6.3 percent to USD 2360 per square meter.

As for average rents in UAE capital, they declined by 5.3 percent.

Meanwhile, villa rents in Dubai rose by 10.1 percent, while apartment rentals fell by 8.1 per cent in the six-month period.

Separately, global real estate adviser Savills reported that in the first half of the year Dubai had recorded the highest level of rental growth, alongside with other cities like Moscow and Miami.

Prime rental prices in the emirate climbed 5 percent between January and June, driven by a 20 percent increase in rents across certain villa communities, Savills said in its report.