Dubai Property Market Is Showing More Profits
The Dubai luxurious property sector exhibits signs of more profit, with a noticeable influx of end-users, according to the latest report from a company.
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The data reveals a shift from 45% to 52% of buyers being end-users. A significant contributor to this trend is the escalating rent prices, prompting individuals to invest more towards property ownership in Dubai.
During the third quarter, there was a 44% surge in potential buyers seeking mortgage financing, despite persistently high rates. This spike aligns with the recorded 28,249 property transactions in the same period – marking a 4% rise from the previous quarter and a substantial 23% increase year-on-year. Interestingly, this growth is attributed mainly to a 34% uprise in villa and townhouse sales, whereas apartment sales witnessed a slight 4% reduction.
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The Upliftment Of Property Market In Dubai
The CEO of a company, commented on the sector's upliftment. He highlighted the impressive 22% year-on-year transaction volume rise during a bustling summer. Property values in several communities witnessed a 49% escalation in the total transaction value. This growth is further complemented by significant infrastructure projects, affirming Dubai's dedication to its 2040 vision.
The property sales during Q3 amounted to Dh79.3 billion, indicating a 13% rise from Q2 2023 and an impressive 49% leap compared to Q3 2022. Although apartment sales saw a 15% and 6% decrease in secondary and off-plan markets respectively, villa and townhouse sales soared. A 54% increase in the latter's value was largely influenced by a 55% hike in secondary market sales, accounting for a dominant 80% share.
Q3 marked a rebound with a 38% jump in villa and townhouse transactions in the secondary market after three consecutive quarters of decline. Concurrently, off-plan sales slightly dipped by 0.4%. The end-user demand for villas and townhouses is undeniable, with transactions increasing by 38% and a staggering 55% rise in the transacted value for secondary market properties. Interestingly, apartment sales experienced a downturn with a 9% overall drop, further impacted by a 15% decrease in the secondary market and a 6% decline in off-plan sales.
How Was The Summer For Dubai ?
The summer season saw a prominent shift towards domestic demand, deterring some international investors. This change results in the highest percentage of end-users since the pandemic's peak in early 2021. However, recent trends suggest buyers' reluctance to pursue steep price hikes, evidenced by the decline in the growth rate of new MOUs in September. Rental markets also felt the strain of scarce availability in sought-after areas, pushing rental prices even higher.
A 19% year-on-year reduction in new lease agreements indicates that many tenants prefer renewing their existing contracts to combat rising rents. With new developments not anticipated to significantly influence supply until 2025, renters might not experience relief soon due to increase in price and delay in completion of the new housing projects.
The other bigger properties like twin villas and exclusive townhouses from other popular builders like DAMAC and SOBHA are also benefiting from these trends. The sale of the first phase of new projects launched by builders like Emaar and Nakheel are being sold out on day one only because of its high demand and popularity of builders and Dubai’s beautiful community. Looking into this there are more housing projects to be launched like Naya At District One within MBR City and Danube Oceanz Tower 3.
Conclusion
Professionals emphasised Dubai's allure for global buyers, with the population swelling by nearly 100,000 in the year till the month of July. According to Dubai Housing . With the UAE poised to welcome around 4,500 millionaires in 2023, the luxury segment continues to thrive.
The market of Dubai will continue to see a rise in demand for a while. The next year of 2024 is also predicted to be good and profitable for the builders and there are going to be more launches. The people living in Dubai are liking its beauty and comfortable lifestyle here while enjoying their holiday time.
