Dubai no longer just a 'playground for wealthy' as affordable homes demand soars

Properties priced below AED1.5 million are driving transactions in the Dubai real estate market so far in 2019, according to new research.

Dubai clocked 18,858 transactions for properties worth up to AED 1.5 million each from January until September 30 this year, said Data Finder, the real estate insights and data platform under the Property Finder Group.

Of these transactions, off-plan accounted for 10,989 deals and the secondary market registered 7,869 deals.

Data Finder said the trend is a continuation from last year when 17,009 properties worth up to AED 1.5 million each were transacted in Dubai in the comparable period.

"This indicates that Dubai real estate is no longer only a playground for the wealthy but has something to offer the budget-conscious buyer in equal measure. The softening in house prices is steadily making Dubai property more affordable to investors and end-users," it said.

According to the data, there were 6,888 transactions registered in Dubai for properties valued between AED 1.5 million to AED 3 million for the first nine months of 2019; 2,196 transactions for properties valued between AED 3 million to AED 5 million; 726 transactions for properties valued between AED 5 million to AED 10 million; and 520 transactions for properties worth more than AED 10 million.

Off-plan accounted for a bigger share of transactions for properties below AED 3 million while secondary market sales contributed a far bigger share in deals for properties worth AED 5 million and above, the statistics showed.

"This suggests that both investors and end-users have a preference for less pricey off-plan projects backed by post-handover payment plans," it noted.

Off-plan sales in the year to end September have already crossed the tally for the comparable period in 2018 — 16,066 units against 13,003 with volumes up 23.6 percent year on year.

“There are many units set to be completed which fall within the affordable category, therefore when they become available in the market, we should expect to see sales activity in the secondary market continue to increase over the next year,” said Lynnette Abad, director of Data and Research, Property Finder. 

Dubai Hills Estate has emerged as the frontrunner for off-plan sales this year, with 1,700 transactions registered, followed by Downtown Dubai.

Established communities saw higher demand for ready units, with Business Bay ranking highest at 1,036 sales in the secondary market.