Villas drive residential property growth in booming Dubai off-plan – Middle East & Gulf News

Dubai’s residential capital value in August 2021 saw the value of villas increase double-digit every year, while apartments in some areas saw single-digit improvements, according to the VPI ValueStrat price index, an index based on the valuation which represents the monthly variation of the prices undergone by the typical residences. units in Dubai.

For only the second time in six years, the 13 villa sites and 21 apartment areas monitored by the VPI saw their capital values ​​stabilize or improve compared to the previous month.

For villas, the highest annual capital gains were found in Arabian Ranches (22%), Jumeirah Islands (20.8%), Dubai Hills Estate (18.5%) and Lakes (18.3%).

The annual performance of the capital value of Dubai apartments, which account for 87% of the residential market, was mixed compared to villas. One-third of all apartments experienced negative annual growth, one-third stable, and one-third single-digit annual capital growth.

In August, sales transaction volumes increased 49% from July. Month-over-month performance saw ready sales increase by 57% and off-plan Oqood (contract) registrations by 42%.

For apartments monitored by VPI, the best annual performances in terms of capital gains are at Palm Jumeirah (6.8%), Jumeirah Beach Residence (6.1%), Al Furjan (4.6%) and Al Quoz Fourth – Al Khail Heights (4.1%).

Properties developed by Emaar (21.5%), Nakheel (8.6%), Damac (6.1%) and Dubai Properties (6.1%).

Villas to stimulate growth

The villas segment is expected to generate strong growth in Dubai’s real estate sector in the fourth quarter as consumer and investor sentiment is on the rise ahead of Expo 2020 Dubai, according to Zoom on properties.

Demand for villas is expected to increase in areas closer to the six-month Expo 2020 site, the property portal said.

The promising figures for Q1 and Q2 2021 and current statistics for Q3 depict the same pattern, and up to 50% sales growth on a QoQ basis is expected in the villa segment in the October-December 2021 quarter, according to Zoom Property overview.

According to Zoom Property Insights, transactions for 1,400 villas valued at $ 8,444 million and 2,284 villas valued at $ 1.47 billion were recorded in the first and second quarters respectively.

Zoom Property Insights said that Arabian Ranches, Dubailand, Dubai South, Palm Jumeirah, MBR City, Dubai Hills Estate and DAMAC Hills 2 would likely be preferred areas for villa transactions in the fourth quarter as the company received from many inquiries from investors and end users.

Real estate sales off-plan

The value of off-plan property sales in Dubai hit an 8-year high after months of sluggish growth, supported by strong demand as pre-construction projects rekindled buyer interest.

Total sales reached $ 1.3 billion in August, the highest value seen in a month for off-plan residential units since December 2013, according to Property Finder. August also saw 2,599 sales transactions, the highest of a calendar month since November 2019.

“During the pandemic year, the off-plan vehicle market has shrunk considerably. The average was around 30% of the properties sold were in the off-plan segment. Today we have bounced off the ratios of 2019, where the secondary and off-plan segments are almost 50/50, ”said Lynnette Sacchetto, director of research and data for Property Finder.

In August, buyers spent an average of MAD 1.9 million per transaction, up 53% from the MAD 1.2 million in the same period last year.

In the apartment category, the average median price for off-plan apartment sales transactions was $ 517,000 in August, about 48% higher than $ 203,000 a year earlier.

As of September, Dubai had seen 34,000 new properties completed. Most of the additional supply, 26,000 units, came from apartment projects, while villa and townhouse developments produced only 6,000 units.

According to a separate report from Asteco, Dubai’s residential offering included 22,500 apartments and 2,000 villas as of June 2021.

Top Dubai developers, including Emaar, Majid Al Futtaim, Union Properties and Azizi Developments, also unveiled plans for villas, townhouses and apartments under development or just launched.

The main off-plan locations negotiated in August were in the Port of Dubai (11.8%), Business Bay (9.2%), Jumeirah Village (9%) and Sobha Hartland (7.8%). Most of the ready-to-buy homes were located in Jumeirah Village (8.4%), Business Bay (7.5%), Al Furjan (7.2%), Dubai Marina (6.9 %), Downtown Dubai (5%) and Dubai Hills Estate (4.5%).

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