Dubai property market significantly recovers in 2019

Dubai registered a total of 41,988 real estate transactions in 2019, according to Data Finder, the real estate insights and data platform under the Property Finder Group.

This represents a growth of 20 per cent in the volume of registered property sales transactions compared to 34,961 transactions in 2018.

It is also the highest number of sales transactions registered annually in Dubai since 2008 when data became publicly available.

There were 11,662 property sales transactions registered in Dubai in 2008.

The Dubai real estate market has, therefore, grown by 260 per cent in the past 11 years in terms of the volume of transactions.

The second highest number of property sales transactions registered in Dubai since 2008 was in 2017 (40,649).

This news comes on the heels of recent reports about the Dubai property market regaining momentum.

December 2019 clocked in 2,989 registered property sales transactions.

Other good months for property sales in Dubai last year were July (4,234), September (4,007) and May (3,512).

“Going into 2020 and leading up to the Expo, we should continue to see transaction levels increase and prices start to stabilise in certain areas.

“We have already started to see certain market dynamics shift as a direct effect from Expo and these trends will most likely continue throughout the year,” says Lynnette Abad, director of data and research, Property Finder.

There continues to be a preference for off-plan properties, with this asset class accounting for an overall 23,643 transactions in 2019.

This could be because of attractive prices and incentives offered by developers such as a waiver of service fees, a wide range of post-handover payment plans, discount on registration charges and commissions, guaranteed rental returns, among others.

However, new off-plan launches were considerably down from their 2017 and 2018 levels.

Dubai registered 18,345 transactions in the secondary market last year.

With new homes becoming completed thick and fast, developers are forced to come up with rent-to-own schemes and other initiatives to make sure that they are not left with unsold, ready units.

As per Data Finder project and supply data, there were over 45,000 units completed in 2019 which was the highest number of units completed in one year over the last five years.