Dubai property market breaks 12-year record in 2021, value of sales transactions peaks at $41.1bn
14 January 2022 – Arabian Business – www.arabianbusiness.com
2021 saw a 74.77 percent rise in sales transaction volume and an increase of 110.19 percent in value compared to 2020, latest data by Property Finder indicates.
Dubai’s real estate market broke a 12-year record in 2021, with the value of industry sales transactions reaching AED151.07billion ($41.1bn), according to the latest data by Property Finder.
The past year saw a 74.77 percent rise in sales transaction volume and an increase of 110.19 percent in value compared to 2020, as well as an increase of 55.47 percent and 90.10 percent in volume and value compared to pre-Covid times, such as in 2019.
In 2021, 59.6 percent of all transactions were for secondary/ready properties and 40.4 percent were for off-plan properties. In terms of the volume of sales transactions, the off-plan market transacted 24,761 properties worth a total of AED45.5bn ($12.4bn) and the secondary market transacted 36,480 properties worth a total of AED105.56bn ($28.7bn), the highest secondary real estate sales transaction value since 2008.
The fourth quarter of 2021 recorded a total of 17,942 transactions worth AED46.75bn ($12.7bn), in which both volume and value of transactions peaked at their highest since Q4 2013.
In Q4 2021, 55.9 percent of all transactions were for secondary/ready properties and 44.1 percent were for off-plan properties. In terms of the volume of transactions, the off-plan market transacted 7,913 properties worth a total of AED16.92bn ($4.6bn) and the secondary market transacted 10,029 properties worth a total of AED29.82bn ($8.1bn).
“Despite the fact that many decided to travel for the first time in over a year during the holidays, Q4 didn’t seem to see a slowdown in sales transactions. Investor sentiment remains strong, demand is still very high and supply is dwindling. This has put upward pressure on prices as they still continue to rise and will most likely continue into H1 of 2022,” said Lynnette Sacchetto, director of research and data at Property Finder.
By Nabila Rahal
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Dubai property market breaks 12-year record in 2021, value of sales transactions peaks at $41.1bn
2021 saw a 74.77 percent rise in sales transaction volume and an increase of 110.19 percent in value compared to 2020, latest data by Property Finder indicates
Dubai’s real estate market broke a 12-year record in 2021, with the value of industry sales transactions reaching AED151.07billion ($41.1bn), according to the latest data by Property Finder.
The past year saw a 74.77 percent rise in sales transaction volume and an increase of 110.19 percent in value compared to 2020, as well as an increase of 55.47 percent and 90.10 percent in volume and value compared to pre-Covid times, such as in 2019.
In 2021, 59.6 percent of all transactions were for secondary/ready properties and 40.4 percent were for off-plan properties. In terms of the volume of sales transactions, the off-plan market transacted 24,761 properties worth a total of AED45.5bn ($12.4bn) and the secondary market transacted 36,480 properties worth a total of AED105.56bn ($28.7bn), the highest secondary real estate sales transaction value since 2008.
The fourth quarter of 2021 recorded a total of 17,942 transactions worth AED46.75bn ($12.7bn), in which both volume and value of transactions peaked at their highest since Q4 2013.
In Q4 2021, 55.9 percent of all transactions were for secondary/ready properties and 44.1 percent were for off-plan properties. In terms of the volume of transactions, the off-plan market transacted 7,913 properties worth a total of AED16.92bn ($4.6bn) and the secondary market transacted 10,029 properties worth a total of AED29.82bn ($8.1bn).
“Despite the fact that many decided to travel for the first time in over a year during the holidays, Q4 didn’t seem to see a slowdown in sales transactions. Investor sentiment remains strong, demand is still very high and supply is dwindling. This has put upward pressure on prices as they still continue to rise and will most likely continue into H1 of 2022,” said Lynnette Sacchetto, director of research and data at Property Finder.
Expo 2020 was also cited as a key factor impacting Dubai’s real estate market, with a total of 17,942 sales transactions worth AED46.75bn taking place since October 2021, the highest volume and value the market has transacted during a quarter in over eight years.
When compared to Q4 2020, the last quarter of 2021 witnessed a 64.12 percent rise in sales transaction volume and an increase of 114.74 percent in value. When compared to pre-Covid times such as Q4 2019, Q4 2021 showed an increase of 47.53 percent in volume and an increase of 97.59 percent in value.
Comparing Q4 to Q3 2021, the volume of off-plan transactions increased by 14.53 percent and the secondary/ready property sales transactions increased by 11.22 percent. The value of off-plan sales transactions increased by 25.38 percent and the value of secondary sales transactions increased by 3.36 percent.
Property Finder, the real estate website for residential and commercial properties, also reported a surge in off-plan sales transactions in Q4, reflected in the fact that this is the highest volume and value of off-plan sales transactions in a given quarter since Q1 2010.
