Residential property deals in Dubai jumped to their highest level since 2013 in the six months to June as individuals sought to buy larger homes, driving prices up. in a market that had been bogged down by years of oversupply.
Average house prices in Dubai increased 2.8% in the first six months of quest’year, according to real estate consultant CBRE Group Inc.
“With strong demand supporting the market, we have seen significantly improve performance of prices, ”Timur Khan, head of research at CBRE, told Bloomberg.
Conversely, the increase comes from a low base compared to prices in June 2020, when the world was grappling with the lockdowns.
CBRE said transaction volumes increased in the first half, increasing by 69.2% and 46.4% over the same period in 2020 and 2019, respectively.
The residential villa market in Dubai has seen an increase in demand and has led to increases in average prices. This luxury market has emerged in a city that has become a paradise for rich Europeans in escape from lockdown.
The real estate market is also experiencing an extended boom in around the world, with ratings in increase at the fastest pace since 2006, according to Knight Frank, and double-digit annual price increases.
At the beginning of quest’year, HSBC said that increased demand for large homes during the pandemic would boost Dubai’s housing market, echoing analysts at Morgan Stanley who expect the rally to continue for several years.
In Dubai, the oversupply has kept price increases somewhat in check, but questyear saw the lowest number of new home launches since 2012. 18,616 units have been completed so far and another 37,466 units are expected to be delivered during the year, one media of Initially fewer than 83,000 units were planned, according to CBRE.
On the contrary, house rents continue to decline, dropping by 5.9% in the year to June 2021, demonstrating the challenge facing the market as a whole. The apartments were the biggest drawback with the rents in 8.1% drop in media in an offer in continuous growth. Over the same 12-month period, villa rents increased by 10.1%.
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