DUBAI 6 April 2021: Median apartment price sits at Dh775,000, townhouse at Dh1,539,000, and villa price at Dh3,333,000, according to Property Monitor.
Its latest release said property prices have risen by nearly 5 per cent in three months – prices rose 1.9% in February after recording gains of 1.3% in January and 1.5% in December, and now stand at Dh858 per sqft.
A fourth consecutive month of rising prices establishes the market trend after prices bottomed out at the end of last year.
Arabian Ranches, Damac Hills, Jumeirah Islands, Mudon and The Villa have all reported largely consistent monthly price appreciation over the past 3-6 months.
For the ninth straight month, sales of completed properties dominated off-plan
Completed property transactions, accounted for 68.4% of sales in February versus only 31.6% for off-plan properties. The pandemic and ensuing need for space seems to have triggered a sense of urgency among buyers and investors to secure ready properties that offer immediate possession in favourable locations, before prices appreciate further.
Mortgage transactions returned to expected levels in February
After setting a record-breaking volume of over 3,000 mortgages in January — where nearly 50% of mortgages occurred on a single day and are believed to have been the result of a bulk portfolio of loans — mortgage transactions returned to expected levels in February with 1,465 loans recorded. Of these, just under 70% were bulk mortgage transactions spread across several projects.
Properties in the range of Dh3M–5M gained market share
In February, the AED 3M–5M price tier witnessed a marked increase in popularity, rising to 12% from 7.7% in January. This rise can largely be attributed to the launch of the Harmony Villas in Tilal Al Ghaf which accounted for 25% of all transactions in this tier.
The market is maturing
Resale transactions—subsequent sales of a property once purchased from the developer — stood at 49.9% of the total market in February, well above the 12-month average of 34.9%. This steady strengthening of the resale market is a telling sign of a maturing market where end-user and investment demand drives activity rather than speculation.
“Based on current trends and reports from brokers of strong demand, Property Monitor predicts that the market will show further growth into the year as the world starts to exit the pandemic and international travel links are restored. Winners and losers will likely emerge based on the desirability of the location and community. The question will then be whether the current price growth is sustainable if supply is again triggered with new developments and off-plan sales recover,” said Zhann Jochinke – COO, Property Monitor.