The number of registered buyers at Dubai’s oldest real estate company Betterhomes has more than doubled, while the company sold 45 percent more units this quarter versus Q1 2020.
Dubai’s property market is on a steady recovery path since prices began increasing last summer, with recovery fueled by European investors looking to escape coronavirus lockdowns and the cold weather, the latest report from Betterhomes indicates.
For the first time in the six years, the property market showed positive trends as the number of units transacted in the residential market increased by 12 percent, and the total value of transacted properties increased by 19 percent, according to Dubai Land Department (DLD).
The number of registered buyers at Dubai’s oldest real estate company Betterhomes has more than doubled, while the company sold 45 percent more units this quarter versus Q1 2020.
“It was not a surprise to see an extremely high number of European buyers in Dubai in Q1 given the winter they have had. Strict travel restrictions, lockdowns and the looming threat of tightening fiscal policies have given plenty of motivation to high-net-worth Europeans looking to invest in the UAE,” said Richard Waind, group managing director.
“We have seen a large number of Europeans who came to escape lockdown Europe in the Autumn take advantage of or relaxations in visa rules and extend their stays, with many now looking to buy holiday homes or become residents themselves,” he continued.
The number of transactions record by British, Italian, French, and German buyers increased by 168 percent since Q1 2020, with luxury villas and apartments on the Palm and other coastal areas being in particularly high demand, said Waind.
As demand increased in Dubai’s villa communities, the number of available villas for sale decreased causing an 18 percent price increase. At Betterhomes LLC, the number of new registered buyers for villas and townhouses increased by 167 percent and the number of actual transactions increased by 72 percent compared to Q1 2021.
When it comes to the number of bedrooms, four-bedroom villa sales doubled over Q1 2020, followed by five-bedroom villas with an increase of 83 percent. The average size of the villas sold decreased in Q1 2021 by 6 percent.
The share of secondary market sales increased in Q1 2021, making up 66 percent of the Dubai market, a shift from 2019 when off-plan sales accounted for over 70 percent.
This can be attributed to a combination of high demand for ready property by end-users, and a lack of new off-plan launches to the market. But recent launches at Tilal al Ghaf by Majid Al Futtaim and La Rosa IV by Dubai Properties have sold out within 24 hours, suggesting investor appetite for off-plan, especially from overseas who are unable to travel, is increasing.
The number of units leased at Betterhomes increased by 19 percent compared to Q1 2020. The popularity of three-bedroom apartments increased by 148 percent compared to Q1 2020, followed by one-bedroom apartments which saw 19 percent growth.
In the villa communities, the average built-up area decreased by 15 percent due to fewer villas in the market this quarter. The most popular unit type in this category is a two-bedroom townhouse.
Source: Arab News
(This story has been published without modifications to the text. Only the heading has been changed)
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