Since the past five years, the real estate market in the UAE has shown signs of healthy demand with constant property price rise over the past four months which is evidence of stabilisation considering the fact that the property market bottomed out in late 2020.
According to the records, initially there was a gain of 1.3 percent in January and 1.5 percent in December, which gained further momentum in February with property price rise of 1.9 percent. The price recovery increased to 4.6 percent recorded as the property monitor. All the brokers have recorded strong demand for property in the market, which are considered to face further accelerations more specifically in popular areas now that everyone hopes for the pandemic to end.
“Based on current trends and reports from brokers of strong demand, Property Monitor predicts that the market will show further growth into the year as the world starts to exit the pandemic and international travel links are restored,” Jochinke said.
Over the past three to five months, localities including Arabian Ranches, Damac Hills, Jumeirah Islands, Mudon and The Villa have been recorded to have a consistent price appreciation on a monthly basis. Keeping the median apartment price at AED 775,000 with Townhouses at AED 1.539 million and Villas at AED 3.333 million.
The sales of completed properties have taken over since the past nine months as the completed property transactions were recorded to have 68.4 percent of sales, whereas, off-pam properties had only 31.6 percent of sales.
“The pandemic and ensuing need for space seems to have triggered a sense of urgency among buyers and investors to secure ready properties that offer immediate possession in favourable locations, before prices appreciate further,” said the report.
Prices rose up to 12 percent to 7.7 percent in January, the price tier of AED 3 million to AED 5 million marked an increase in demand. Nonetheless, this increase in popularity can be attributed towards the launch of Harmony Villas in Tilal Al Ghaf which was recorded to possess 25 percent of the entire sales.
The steady and strengthening state of the real estate market is a proof of a maturing market and consistent property price rise where all the investment demand enterprises activity instead of speculation in the property market.
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