|Historically, developers have been responsible for off-plan sales before and during construction, however, due to excess stock not sold during the launch of the project or while under construction, developers have been forced to hold on to the stock and sell it when completed as prime, ready properties in their portfolio.
Looking at 2021 as a whole, developers have been responsible for the sale of 11,303 prime, ready properties in the market, in addition to 17,286 off-plan properties sales. As a percentage of the ready market, developer sales were approximately 38 percent of total ready property sales in 2021, whereas secondary ready market sales accounted for 62 percent.
October 2021 had 5,352 transactions worth AED 13.12 billion, making it the best October on record for the past eight years.
Including October 2021, this brings the year to date total to 48,651 sales transactions worth AED 177.44 billion. In just 10 months, the value of real estate sales transactions is 63.4 percent more than 2020 as a whole and is already the highest yearly sales figure since 2015.
In October 2021, 60 percent of all transactions were for secondary/ready properties and 40 percent were for off-plan properties. When we look at the volume of transactions, the off-plan market transacted 2,133 properties worth a total of AED 4.4 billion.The ready market transacted 3,219 transactions worth AED 8.72 billion.
Breaking this down further by developer sales and individual sales, developers had a total of 3,395 transactions worth AED 8.08 bn which included off-plan and prime, ready properties while individual sales accounted for 1,957 transactions worth AED 5.03 billion.
Commenting on the market, Lynnette Sacchetto, Director of Research and Data at Property Finder stated “During the pandemic in 2020, developers decided to focus on completing existing projects rather than launch new projects. This focus led to a significantly large amount of units completed and ready just in time when investor/consumer demand rose significantly. In fact, 58.76 percent of all sales transactions (28,589) conducted in 2021 were by developers as off-plan and prime, ready property sales transactions.”
According to proprietary Property Finder demand data, the top areas for transactions in October 2021 were the Damac Hills 2, Nad Al Sheba, The Springs, Dubai Hills Estate and Arabian Ranches. As for apartments for the same period, the top areas of interest were Dubai Marina, Business Bay,Jumeirah Village Circle, Downtown Dubai and Jumeirah Lake Towers.
For off-plan properties the top areas of transactions in the month of October 2021 for villas/townhouses were Arabian Ranches 3, Tilal al Ghaf, The Valley, Dubai Land and Mohammed bin Rashid City. As for apartments for the same period, the top areas of interest were Dubai Harbour, Mohammed bin Rashid City, Dubai Creek Harbour, Business Bay and Downtown Dubai.