Upwards trend for secondary and ready properties
January 2021 had 3,300 transactions worth AED 6.74 billion
Upwards trend for secondary and ready properties.
After a couple of record-breaking months, which were November and December 2020, January 2021 has started the year with the same trends, which is healthy news for the residential real estate industry. According to Data Finder, the real estate insights and data platform under the Property Finder group, January 2021 had 3,300 transactions worth AED 6.74 billion, 15.5 per cent more than January 2020 in terms of volume and 37 per cent more in terms of value.
The trend throughout 2020 was secondary/ready properties started transacting more, and this trend has continued into this new year. 72 per cent of all transactions in January 2021 were for secondary/ready properties, and 28 per cent were for off-plan properties. When we look at the volume of transactions, the secondary market transacted 2,373 properties worth a total of AED 5.43 billion, and this is the highest number of secondary/ready properties transacted in a single month since March 2014.
“We saw many trends in 2020, from pent-up demand to secondary, exceeded off-plan in residential sales and the best mortgage rates we have ever seen. The most significant trend was the shift from apartments to villa/townhouses and in some areas, a lack of supply causing prices to increase.” according to Lynnette Abad, Director of Research & Data.
Q4 2020 was the strongest quarter in 2020 and helped the year recover the most in volume and value with 11,065 sales transactions worth AED 22.07 billion. This quarter set the wheels in motion for the year to start strong, and we are most likely going to see this going forward into February, where we had already seen more than Dh3.3 billion in sales transactions last week. This included an AED 38 million Villa in Emirates Hills and an AED 25.2 million villa in Jumeirah Golf Estates.
11.5 per cent of all sales for villas/townhouses in January 2021 took place in Naad al Sheeba, followed by Dubailand (11.4 per cent), Maydan (7.5 per cent), Dubai Hills Estate (6 per cent) and Tilal al Ghaf (4.8 per cent). Looking at apartments, 12.4 per cent of all sales transactions took place in Business Bay followed by Dubai Marina (9.7 per cent), Jumeirah Village Circle (9.3 per cent), Downtown Dubai (5.6 per cent) and Palm Jumeirah (5.4 per cent)
According to proprietary Property finder demand data, the top areas of interest in searches for villas/townhouses in January 2021 have Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Beach Residence.