Prices in popular parts of Dubai rebound to 2014 levels

Property sales prices in popular parts of Dubai rebound to 2014 levels.

New Bayut and Dubizzle research says confidence has returned among buyers in the Dubai real estate market

Sales prices for popular areas in Dubai are the highest seen in the market since 2014, according to the CEO of Bayut and Dubizzle.

Haider Ali Khan said the rise in prices in most locations in the city was a "good measure of the confidence" that property seekers currently have in Dubai’s real estate market.

“This year has really started off on a good note for the Dubai real estate market. In the first quarter of 2021, we have seen impressive growth in demand; prices have increased in most of the key areas and the volume of transactions have also gone up.

“We have also noticed that there is a lot of positive sentiment in the market, thanks to the recent announcements from the government, both locally and internationally... All of this points to the fact that there is a growing appetite for residential space in the city; a trend that we could see transitioning into the rest of the year as well,” Khan (pictured below) added.

His comments come as Bayut and Dubizzle released a new report that showed sales and rental prices in the most popular neighbourhoods have shown growth while demand has risen for luxury real estate in particular.

It cited lower interest rates, higher loan-to-value ratios and attractive property prices over the last year as reasons for the strong Q1 performance.

The report added that favourable market conditions, combined with the growing need for bigger living spaces and access to recreational amenities by end-users, have been driving demand, particularly for ready-to-move-in homes.

Government initiatives have also played an integral role in further enhancing Dubai’s appeal to a wider audience.

Landmark announcements regarding the UAE Citizenship Law and remote work visas have also led to strong investor sentiment while proactive measures to combat the ongoing pandemic and the organised vaccination campaign have further built on the city’s reputation as one of the safest places to live in the world.

According to data published by the Dubai Land Department (DLD), 62 percent of total investors in January and February 2021 were new home buyers, highlighting the city’s growing appeal with first-time buyers, the report noted.

Combined sales and rental data released by Bayut and Dubizzle has revealed that properties for sale in Dubai experienced price increases between 2-10 percent in Q1. Rental costs also increased by up to 10 percent in Dubai’s luxury segment, while the affordable housing market recorded decreases of up to 13 percent.

Dubai recorded 6,328 transactions for residential properties worth AED8.9 billion in the first quarter of 2021.

According to Bayut and Dubizzle, Dubai’s luxury apartment segment recorded an impressive uptick in sales prices, pointing to growing demand for upscale homes.

Dubai Marina has continued to generate the most interest for luxury apartment sales in the first quarter of 2021, with the average price-per-square-foot for ready apartments rising 5.6 percent to AED1,217.

Luxury villa communities in Dubai have also experienced an increase in sales prices in Q1, which is likely driven by rising demand for bigger ready-to-move-in homes in the wake of the coronavirus pandemic.

Arabian Ranches saw average sales price-per-square-foot rises of 9.7 percent to AED1,022.