Business Bay, Downtown Dubai Lead 20% Growth in Real Estate Transactions in 2019

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Posted by admindbp on January 8, 2020
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Dubai registered 41,988 real estate transactions last year, according to Dubai-based real estate insights and data platform Data Finder.

The top five areas that witnessed the highest overall property sales transactions were Business Bay (3,146), Downtown Burj Khalifa (2,816), Dubai Creek Harbour (2,492), Dubai Hills Estate (2,373) and Dubai South (2,048). For off-plan, Dubai Creek Harbour (2,423), Downtown (2,088), Dubai Hills Estate (1,949), Dubai South (1,942) and Business Bay (1,811) top the list. On the secondary market, areas that witnessed the most sales were International City (1,342), Business Bay (1,335), Dubai Marina (1,280), Jumeirah Village Circle (1,108) and Jumeirah Lakes Towers (851).

Business Bay property transactions

Source: Gulf News

Off-plan vs secondary transactions

According to Data Finder, there continues to be a preference for off-plan properties. This asset class accounted for overall 23,643 transactions last year. This could be because of the attractive prices and incentives offered by developers. These included waiving of service fees, post-handover payment plans, discount on registration charges and commissions, and guaranteed rental returns. However, new off-plan launches were considerably down from their 2017 and 2018 levels.

Meanwhile, several potential buyers are still unable to afford the down payment stipulated by the UAE Central Bank to qualify for a mortgage. This is leading purchasers to increasingly opt for developer-sponsored payment plans to fund their off-plan properties. This has resulted in several first-time homebuyers getting on the property ladder.

Buyer’s marker

Dubai registered 18,345 transactions in the secondary market last year. Meanwhile, developers are forced to come up with rent-to-own schemes and other initiatives to sell all their ready units. This makes it a perfect buyer’s market, with attractive prices, good deals and plenty of options to choose from.

Popular areas for renting

Dubai Marina was the most popular area for renting last year with an average rental price of Dh98,405, says Lewis Allsopp, CEO of Allsopp & Allsopp. “This is the second consecutive year that it has come out on top,” says Allsopp. “Dubai Marina is a vibrant community and is very popular with tenants who are new to Dubai. The community caters to everyone. It has studio apartments for singles, an array of properties for couples and large apartments and a few townhouses for families. Coming a very close second for rental popularity is Downtown Dubai where the average rental price for 2019 was Dh109,000.

 

Source: Gulf News