Sales of off-plan and secondary properties in Dubai reached a 12-year high in the third quarter, both in terms of volume and value, according to a report by Property Finder.
A total of 25,456 sales transactions worth Dh69.72 billion ($18.98bn) were recorded in the third quarter, marking an increase of about 62 per cent in terms of volume and more than 65 per cent in terms of value, compared with the third quarter of 2021.
There were 4,210 transactions worth Dh14.66bn in the secondary segment and 4,439 off-plan transactions valued at Dh9.75bn in September — a monthly high — as the momentum recorded throughout the year in the Dubai market continued.
“The surge in demand across [the] off-plan and secondary market comes as no surprise, given the UAE’s proactive strategies, attractive policies, golden visa initiative, formidable investment landscape and the property-pricing tactics,” said Scott Bond, UAE country manager at Property Finder.
“Major trends and catalysts, including an influx of high-net-worth individuals and millennials switching from renting to owning their desired properties, will consolidate the prominence of Dubai’s property market.”
Secondary properties recorded an increase of more than 30 per cent in terms of volume and a rise of more than 32 per cent in terms of value in September, on an annual basis.
Meanwhile, off-plan transactions in September were up more than 80 per cent in terms of volume and 94 per cent in terms of value year on year, Property Finder said.
The strong sales performance in September follows a decade-high reached in August, as the market continues to rebound over the past year on the back of the UAE's broader economic recovery.
The market boom is expected to continue through to the end of the year, with a further boost set to come from the hosting of the football World Cup in Qatar next month.
“While globally, recession fears and stock market concerns loom, the UAE government’s agile response to the pandemic, the successful hosting of Expo 2020 and the raft of demand drivers that were set in motion over the last few years to cement Dubai’s global positioning are bearing results,” property consultancy Cushman & Wakefield Core said in its Dubai market update for the third quarter.
“This is evidenced by the influx of FDI [foreign direct investment] and HNI wealth, rising number of licences issued, record transaction volumes and sustained population growth across income segments.”
It said Dubai had a record number of property sales worth more than Dh100 million this year, with 16 to date, including 10 in the third quarter.
A shortage of prime property in the city has been driving up prices.
Ultra-prime waterfront projects such as Bulgari Ocean Mansions and Palm Jumeirah villas were leading this trend, it said.
Earlier this week, it was announced that a record for the most expensive property sale in Dubai had been achieved.
The property was a double Signature Villa, named Casa Del Sole, on Palm Jumeirah, which was developed by Alpago Properties and sold for Dh302m.
It beat the earlier record high sale price of Dh280m, which also came this year.
The property has eight bedrooms and underground parking for up to 15 cars. It has been built over four levels on a plot of 28,000 square feet (2,601 square metres).