A new trend is taking on Dubai real estate sector. It’s official, the recent numbers suggest that Dubai’s property transactions have hit an 11-year high. The data shows that 2019 has seen 41,988 numbers of transactions compared to 2018, which had 34,961. This represents a 17 percent increase in a year on year comparison.
The latest data was released by Property Finder, one of Dubai’s largest real estate portals. Data shows that the largest bulk of real estate transactions came from off-plan properties. It is equivalent to 23,643 transactions, which is equal to 56.3 percent of the total number of transactions.
According to studies, off-plan Dubai properties received the most numbers because of the following:
Other key numbers to take note of is the secondary market transactions reaching 18,345 for last year. On the other hand, there are over 45,000 units that have already been completed in 2019.
Some experts suggest that one of the big factors that led to the improved confidence in the market is the Higher Real Estate Committee formation. This committee successfully rebalanced the supply and demand of real estate in UAE especially since last September of 2019.
Developers are also coming up with more creative ideas to ensure that their unsold, ready to occupy units will not become a dead investment. For example, developers offer rent-to-own schemes, good deals, and attractive prices to encourage more people to buy their properties.
Looking back to 2019, Dubai has seen a decline in new projects launched. The main reason was that developers were focused more on selling their existing properties first before building new one. This led to an adjustment in the supply and demand scale.
However, before 2019, you might remember that there has been a surplus of available properties for sale in Dubai. With the increase of supply, the property price and rental rates have declined. This brought many properties in 2019 to be more affordable. Lower price means more people are able to buy new properties.
Experts further state that this trend would continue in 2020. With the much-awaited Expo just around the corner, more and more investors are expected to enter the market. This should pump more money into the real estate sector, leading to a much robust and thriving economy of Dubai.
If you want to learn more about the real estate trends of Dubai, Rocky Real Estate LLC is here to answer your questions. We are among the leading real estate companies in the UAE. We have solid knowledge and experience to handle any of your concerns related to real estate. Give us a call today!