A report shows Secondary residential market stable, according to a new statement from Luxhabitat
A villa in Palm Jumeirah sold for AED 40 million this past quarter.
Secondary residential market transactions in Dubai remains firm in the second quarter of 2018, with a total amount of AED 12.1 billion ($3.3bn), compared to AED 14.4 billion ($3.9bn) in Q1, according to a new report from a property brokerage.
According to the data, over 1,400 villas and 6,652 apartments were negotiated over the course of the quarter.
Additionally, the report determined that off-plan market activity in Dubai continued to maintain in Q2, with several new launches during the quarter. Off-plan transaction volumes and the overall number of transactions fell almost 28 from the previous quarter, with a total of 80,000 units scheduled for achievement in 2018.
Best superior residential areas in terms of gross rental yield per year.
Area Average gross rental yield (%)
Jumeirah Village Circle 7.96
Jumeirah Lake Towers 7.52
Emirates Living 7.15
DIFC 6.22
Dubai Marina 6.00
The data indicates that the superior residential market in Q2 totalled AED 3.5 billion, with secondary villa sales volume multiply that of off-plan sales during the quarter.
Of the areas recognised that the top performers in terms of sales amount were Business Bay with AED 2.3 billion in transactions, followed by Mohammed bin Rashid City with AED 1.9 billion and Dubai Marina with AED 1.2 billion.
Top 5 villa transactions
Development Price Average Plot size
Fronds, Palm Jumeirah 40,000,000 14,451
Fronds, Palm Jumeirah 24,563,400 13,406
Jumeirah Bay island 21,800,000 13,698
Fronds, Palm Jumeirah 20,000,000 13,404
Al Barsha villa 20,000,000 11,097
Analysis, July 2018
The report noted that the best rental yields in Dubai were in Jumeirah Village Circle (7.96 percent), Jumeirah Lake Towers (7.52 percent), Emirates Living (7.15 percent), DIFC (6.22 percent) and Dubai Marina (6 percent).
Top 5 apartment transactions
Price Average BUA (Built Up Area)
Il Primo 43,098,888 11,550
The One at Palm Jumeirah 31,500,000 9,223
Bulgari Resorts & Residences 24,993,000 7,085
Jumeirah 1 apartment 24,500,000 11,159
The One at Palm Jumeirah 22,363,500 7,162
Source: Property Monitor Research, July 2018
This is some assertive development indeed. As per the latest facts and figures shared by the Dubai Land Department (DLD) especially about the rising number of Dubai real estate and permits, there has been a very positive spike. Consequently, it is safe to assume that Dubai property and real estate market is definitely maturing and the “slow” trend is clearly over.
There have been multiple inputs from several sources over the period of last one year which have been aiming towards a slightly slow and dull real estate situation in Dubai. This was held up by some credible residential real estate surveys which verified the slowdown in the Dubai real estate and property segment, especially in the Dubai residential real estate space.
All the above was till now, but Dubai real estate does keep bouncing back. As per the latest numbers put out by the Dubai Land Department (DLD), there has been an abundant increase in the number of real estate and property and permits that have been given by them which simply means that Dubai real estate and property developers are driving ahead with renewed energy and new vigor to ride the positive buying momentum in the Dubai realty market.
This flurry of marketing activities, new launches, schemes and improving positive sentiments locally as well as globally for Dubai real estate surely augurs well for everyone correlated to this industry and of course to the customers, investors and stakeholders in this beautiful emirate.
The action has shifted online big time.
These figures yielded below are some of the most straightforward indicators of the direction towards which real estate advertising and marketing activities are moving to.
Out of 8,500 real estate advertising that was delivered over by DLD In the last 12 months, a jaw-dropping 3/4th (75 plus percent) was given for e-advertising permits.
This unquestionably indicates that online is the preferred advertising medium for companies and the reach, culpability and other key metrics that digital advertising brings to the table has made it the favourite for all concerned.
As Dubai Expo 2020 beckons and comes nearer with each passing moment, the frenzied real estate activity on the ground and also in terms of the marketing efforts been carried across multiple media are clear signs of the constant and strong growth of Dubai real estate and fantastic energy it is gaining as we come close to this landmark event.
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