Dubai has witnessed a sharp increase in the volume of real estate transactions during the 11-month period from January to November with a total of 36,799 residential properties being sold during the period in Dubai.
There is definite evidence of improving momentum in the Dubai real estate market, it stated.
Dubai had registered a total of 44,590 overall real estate transactions from November 2018 until November 2019, according to Data Finder, the real estate insights and data platform under the
Property Finder Group.
This is the highest transactional volume for any 12-month period in the history of Dubai real estate since sales transaction data was made publicly available, it stated.
The past 12 months have seen the maximum volume of transactions for this timeframe in the history of Dubai real estate, it added.
Property Finder also recently reported that November property sales in Dubai had hit a 11-year high of 5,037 deals, up from 4,774 deals in October and 4,007 transactions in September.
All these are indications that the Dubai property market is gearing up for an upturn ahead of Expo 2020, stated the report.
The spurt in transactional volumes since September 2019 can be attributed to the positive impact on market sentiment following the formation of the emirate’s Higher Real Estate Planning Committee, which has been set up to come up with a longer term plan for the future of the sector, it added.
Even in terms of the value of real estate transactions, November had been the best so far this year, with deals worth Dh9.27 billion registered in Dubai.
The second best month so far this year was February, with property transactions worth Dh8.71 billion registered in Dubai, according to Data Finder. This was followed by October, which registered transactions worth Dh8.68 billion.
The lowest so far was August, which clocked in only property deals worth Dh4.27 billion. This can be attributed to the general transactional lull during the summer months, said the Property Finder Group
in its report.
"I believe we will continue to see transactions rise month on month going into 2020 and see a nice mix of investors and end-users purchasing property in Dubai. Prices should also start to stabilise as we move into H2 of 2020,” remarked Lynnette Abad, the director of Research and Data, Property Finder.
Reforms initiated by the government and the UAE Central Bank have also boosted demand, stated Abad.
New regulations, such as the 10-year Gold Card, retirement visa, property purchase visa, and the Mollak system to streamline service charges have been welcomed by end-users and investors alike.
Also the decision to reduce the early settlement fee for mortgages and remove the maximum age to repay mortgages have been met with a positive response, she added.
Cumulatively, sales transactions worth Dh76.6 billion have been registered in Dubai until November 30 this year, according to publicly available government data. This excludes mortgage transactions, land grants and other transactions.
According to the expert, the increasing sales momentum is an indication of increasing consumer confidence in the market.
This comes on the back of declining property prices, an excess amount of supply in the market, favourable payment plans from developers and low interest rates from mortgage providers.
All these combined are driving confidence among buyers to invest in Dubai property a few months ahead of Expo 2020, it added.-TradeArabia News Service
