Residential property sales in Dubai surged to 8-year high in June

USD 4 billion worth of deals was recorded in Dubai in Dubai in one month, says Property Finder.

According to the latest data, Dubai’s property market has just had its busiest month in about eight years, as in June buyers continued snapping up villas and apartments despite the ongoing pandemic.

6,388 deals worth USD 4 billion were recorded in Dubai in total in June 2021, which is the highest result since December 2013, real estate platform Property Finder said in its report Tuesday. Compared to May 2021 transactions for the month increased by 44.33 percent in terms of volume and by 33.2 percent in terms of value.  

Total deals for the second quarter of the year reached 15,638, with their combined value standing at USD 10 billion. Thus, the year's total to date comes to 27,373 transactions worth USD 16 billion.

Demand for homes in UAE has been rising since COVID-19 restrictions easing last year. Buyer take advantage of record-low pricing and interest rates, and favourable loan-to-value ratios (LTV).  

'The increase in demand is driven by affordability, as prices reached 10-year lows, record-low interest rates, LTV up to 85 percent, improved market sentiment due to proactive initiatives made by the government to limit supply and encourage demand, plus the excellent management of the COVID-19 crisis as UAE is among the top countries when it comes to vaccination programs,' Haider Tuaima, head of real estate research at ValuStrat. 

However, buying activity is still concentrated in the secondary/ready market, representing 61.5 percent of all property deals in June, while off-plan property accounted for 38.5 percent of the transactions.  

The Green community emerged as the most popular location last month among villa buyers, accounting for 18.2 percent of the deals made in June. It is followed by Mohammed Bin Rashid City (11.3 percent), Dubai Hills Estate (5.5 percent), Arabian Ranches (4.8 percent), Akoya (4.5 percent), Dubai Land (4.2 percent), Arabian Ranches (3.8 percent) and Town Square (3.2 percent). 

As for apartment buyers, Meydan was the most popular choice, representing 15 percent of the sales. It is followed by Jumeirah Lakes Towers (9.3 percent), Dubai Marina (8 percent), Business Bay (6.8 percent), Downtown Dubai (6.6 percent), Mohammed Bin Rashid City (6.3 percent), Jumeirah Village Circle (5.4 percent), Palm Jumeirah (3.9 percent), Jumeirah Beach (3 percent) and Dubai Harbour (3 percent).