Dubai – Decypha: The number of off-plan real estate sales in Dubai has grown by 45% in the first quarter in 2017 (Q1-17), with a 4% increase in ready properties transactions and 25% in overall sales.
The increase in incentives and payment plans offered by real estate developers has boosted residential transactions in Q1-17, supporting investing in the real estate sector, said Ivana Gazivoda Vucinic, Head of Advisory & Research at Chestertons.
In comparison to the previous quarter, the value of transactions in both ready and off-plan units registered AED12.28 billion, up 31% quarter-on-quarter, indicating that prices are matching the buyers’ expectations.
With oversupplied units not likely to be witnessed in 2017, a number of 15,000 units are expected to be added to the market this year, down from 16,000 units in 2016.
“With a growing population and ever-present foreign investors’ appetite, we expect the forecasted units due for delivery this year to be easily absorbed by additional demand,” said Vucinic, adding that the residential market is expected to be recovered with the increasing transactions and stable prices.
The prices of apartments in Dubai has hiked by 3% in Q1-17, as Dubailand recorded 20% from an average of AED760 per square metre to AED904.2 per square metre and Dubai Sports City jumped by 15% from an average of AED918 per square metre to AED1,053 per square metre.
Meanwhile, price drops were witnessed in other areas such as The Greens and JVT, which dropped by 5%. Villa sales prices in Palm Jumeirah have increased by an average of 7%, however, it fell by 10% in Dubai’s The Meadows.
In the same quarter, apartment and villa rents both dropped by 1%, with rents of villas in Victory Heights and The Springs declining by 8% and 6% respectively, while The Lakes’ villas upped by 6%.
With regards to villa sales, it has grown by an average of 2%, with the biggest increases recorded by JLT (5%) and Barsha Heights (4%).
“Despite the growth of sales values, rents were still under pressure and dropped by 3% on average. JLT maintained the same rental levels from the previous quarter, while Business Bay and DIFC dropped by 4% on average and the rents fell in Barsha Heights by an average of 3%,” Chestertons said in the report.
But in terms of volume, office sales have dropped by an average of 17% in Q1, with signs it goes through “a correction stage”.
Chestertons has over 200 years of experience in property and residential reports and services, with offices in Europe, Asia, Australia and the Middle East.
By Decypha Editorial Team
