The value of ready home transactions in Dubai more than doubled annually to Dh8.5 billion ($2.3bn) in February, according to Egyptian investment bank EFG Hermes.
The increase was a result of a UAE property market rebound driven by government initiatives and Expo 2020 Dubai.
Total residential activity rose 34 per cent a year to Dh15.5bn in February, with 6,913 units sold. This was primarily fuelled by a three-time surge in the value of off-plan sales and a 107 per cent rise in the sale of move-in ready homes, the report said, citing Reidin data.
A total of 2,399 off-plan units worth Dh4.24bn were sold in February, compared with 955 homes valued at Dh1.26bn during same period last year.
“The most active areas in Dubai for off-plan sales were Mohammed bin Rashid City, Dubailand, Dubai Marina, Business Bay and Downtown Dubai,” EFG Hermes said.
The UAE property market has recovered from the coronavirus-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme.
Measures to contain the spread of the pandemic, such as the UAE’s widespread vaccination programme, have also helped the real estate market to recover.
The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of sales transactions.
The emirate registered 61,241 sales deals worth Dh151.07bn in 2021, making it the best year for total transactions since 2013 and the highest in terms of value since 2009, said listings portal Property Finder.
Affordable home sales accounted for 48 per cent of total residential transactions in February while budget and luxury home sales made up 31 per cent and 21 per cent of the total mix, respectively, EFG Hermes said.
Villas accounted for 36 per cent of the value of all transactions while apartments contributed 31 per cent and land sales added 29 per cent, the report said.
Residential sales prices in Dubai rose 41.3 per cent annually to an average of Dh1,612 per square foot on higher prices across all segments.
Palm Jumeirah registered the biggest increase annually, with the price per square foot rising to Dh2,480, from Dh1,322, while Bur Dubai recorded the biggest drop in price — to Dh1,304, from Dh2,671, EFG Hermes reported.
In terms of February’s rental performance, Downtown Dubai led the recovery while communities such as the International Media Production Zone, Sports City and Dubai Silicon Oasis were the worst performers, the report found.
In the Dubai luxury market, total activity rose 156 per cent annually to Dh3.3bn. The top five areas by transaction value for luxury property were Palm Jumeirah, Downtown Dubai, Dubai Harbour, Dubai Creek Harbour and Jumeirah Bay Island.
There was a strong pick-up in activity in the affordable property segment in February, driven by sales of ready units.
The transaction value of cheaper homes rose 26 per cent a year to Dh7.4bn, EFG Hermes said, with MBR City, Dubai Marina, Business Bay, Damac Lagoons and Arabian Ranches making up the top five areas by transaction value.
The budget property market grew 9 per cent annually to Dh4.8bn, also on growing ready unit sales.
Dubailand accounted for 41 per cent of total activity in the budget segment while Al Furjan, Tilal Al Ghaf, Jumeirah Village Circle and Jumeirah Golf Estates were the other main areas for the segment, the report said.