Dubai’s secondary real estate market booms in first quarter

Property investors from the UK, Italy, and France claimed prime spots in the top-10 list of foreign investors in Dubai as the emirate’s real estate sector witnessed the dominance of the secondary market in the first quarter.

The emirate’s resurgent realty market recorded the best ever quarter since 2010, with a total of 20,539 sales transactions valued at Dh55.5 billion.

Investors from India and Pakistan also made significant investments in Dubai real estate during the quarter, which also saw a big increase in Canadian investors and buyers. Investors from Russia, Lebanon, and China were among the other three nationalities in the top-ten list.

Citing official data, the Zoom Property Insights said the secondary market dominated the real estate sector as it constituted around 58 per cent of total sales transactions, while the remaining 42 per cent of sales were recorded in the primary market.

In April, the Dubai real estate market enjoyed its second highest ever April in terms of transactions, according to the latest data. A total of 60 per cent of the transactions were in the secondary market and 40 per cent in the off-plan market. This represents a 46 percent increase in volume and 67 per cent increase in value year-on-year, and comes after a record-breaking March.

Upward trend to continue

April saw a total of 7,009 sales transactions worth Dh18.3 billion, according to data available on the open data platform of Dubai Land Department. It was also the second highest April on record for sales volume and value, with April 2009 being the highest. Among the top areas for sales transactions in April for villas and townhouses was Arabian Ranches-3 for off-plan, and Dubai Hills Estate for the secondary market.

The market is expected to continue its upwards trajectory with more foreign investors pouring into the market, owing to visa reforms and economic stability. The changing scenario in the Dubai labour law and the abundant entrepreneurial opportunities are also attracting a huge number of investors, according to Zoom Property Insights.

Source: Khaleej Time