European buyers relocating families to Dubai boost real estate rebound – News
In June, Dubai’s resilient real estate market maintained its resounding recovery, with prices rising 2.1%, the eighth consecutive monthly increase.
European buyers, mostly end-users who settle their families in the relative safety of Dubai, drove a significant rebound in the emirate’s real estate sector as prices hit an eight-year high, registering a jump of 10% year over year in June. .
A report from Property Monitor, one of the leading real estate portals, said that European buyers have recently emerged as “a key demographic, driving sales, most of which are end users”.
“Based on our conversations with brokers and industry experts, the motivation here is the relocation of entire families from Europe, as opposed to the sole breadwinner living in Dubai. As further evidence of this trend, several schools have reported an increase in the enrollment of new residents, ”the report says.
“What we’re seeing here is an evolution … where people buy homes to live in after renting for a few years, then sell those homes and move on to bigger properties, creating a mature real estate cycle,” Lewis Allsopp, CEO of Allsopp & Allsopp, the real estate agency, said.
In June, Dubai’s resilient real estate market maintained its resounding recovery, with prices rising 2.1%, the eighth consecutive monthly increase as the number of deals posted its best performance since December 2013 with 6,389 deals recorded. , said the portal.
Median prices in June were Dh 928,848 for apartments, Dh 1.7 million for townhouses and Dh 3.4 million for villas.
“On a monthly basis, prices have climbed 2.1% and now stand at MAD 924 per square foot. They were last seen at these levels two years ago. Since the low reached in November 2020, house prices have risen 12.7%, ”the report said.
“The recovery is still uneven between the communities with the largest price increases observed on the villa market and the communities traditionally sought after. However, we expect the recovery to balance out over the remainder of 2021 and pass at a more sustainable pace across Dubai, ”the report said.
According to data from the Dubai Land Department, the Dubai real estate market recorded transactions worth 68 billion dirhams) in the first 53 days of the year. For the whole year, projections are over 300 billion dirhams.
Demand continues to remain robust for high-end properties in the market with transactions for properties valued at over MAD 10 million recording another strong month.
A total of 111 transactions were recorded in this segment in June, slightly below the 117 in May, but still indicative of a buoyant market.
On a monthly basis, sales jumped 43.7% and climbed 174% from last June, when buyers first saw attractive real estate deals amid easing movement restrictions. .
“A block of registrations delayed in June for the previous months was recorded by Azizi Developments, including the developer’s off-plan and initial sales. While this contributed significantly to the increase in sales volumes this month, even without these deals, June had one of its best deal performance since at least 2009, ”the report said.
In total, 2,419 off-plan sales were recorded in June, up 43.3% on a monthly basis. Completed properties took 62.1% market share in June 2021 versus 37.9% off-plan, continuing a year-long trend as new launches halt and buyers have shown a preference for off-plan properties. properties ready to relocate.
However, completed real estate transactions may start to give up some of these market share gains as new project launches accelerate. Meanwhile, initial sale transactions – the first sale of a developer’s property for an off-plan or completed project – jumped 51.2% per month to stand at 3,800 in June.
Mortgages for villas and townhouses increased month over month, while loans for apartments declined, reflecting buyer preferences. Overall, at 2,135, new loans for June were down 9.4% from the previous month, due to lower bulk mortgages, which are primarily on apartment buildings. – [email protected]