Sale of apartments and villas go up in Dubai
- Residential sales volumes rose by 30 per cent in Q4 2016
- Nearly AED18 billion worth transactions recorded in 2016
- Dubai Marina recorded most transactions in Q4
Dubai’s real estate closed 2016 with a bang as more tenants were willing to buy properties in the emirate in the fourth quarter.
Residential sales volumes in the emirate increased by 30 per cent during the period compared to Q4 2015, according to the latest figures from leading property consultant Chestertons MENA.
Total residential transaction volumes equaled those of sales.
Closing the gap
“This is a possible indication that the gap between what a seller expects to achieve and the amount that a buyer is actually willing to pay is closing still further,” says Robin Teh, Country Manager – UAE & Valuations & Advisory Director, MENA.
Residential cash sale transactions, however, dropped in 2016. Nearly AED18 billion worth transactions were recorded, dropping by 25 per cent from the previous year.
Nonetheless, mortgaged purchases saw an increase, which Chestertons considers an indication of growing interest from owners or occupiers to buying property in Dubai.
“The average drop in sales prices in areas such as Dubai Marina, Emirates Living and Jumeirah Lake Towers (JLT) have made these locations more attractive to potential homeowners who may have previously been tenants,” says Teh.
“While International City remains an attractive area for investors, Dubai Sports City provides affordable units which have grown in demand over the last couple of years,” he adds.
Dubai Marina, International City, Dubai Sports City, Emirates Living and Jumeirah Lake Towers were the top five locations in total transaction values and volumes in the three months ending December 31.
Dubai Marina came in at the number one spot with 416 transactions worth AED724 million in Q4 and a total of AED 2.9bn in the full-year 2016.