Dubai residential property sales were up in the second quarter of 2019 according to an analysis by Luxhabitat based on data by Property Monitor.
In the overall market, the number of Dubai residential property transactions increased by 2.12 per cent, boosted by golden visa programs added much-needed stimulus to overseas property investors.
An overall analysis of the Dubai residential property market in Q2 2019 revealed that over 1,711 villas and 6,409 apartments were transacted in the overall residential market for a total volume of AED 20.4 billion.
There was an increase in the volume of transactions in the secondary market to AED 13.7 billion, a 5.83 per cent increase, compared to AED 12.9 billion in Q1 2019.
The Prime Dubai Residential property market grew by 3.24 per cent over the past quarter to AED 10.6 billion. Arabian Ranches 1, Jumeirah Golf Estates & Downtown Dubai are the top 3 areas that experienced 45.50 per cent, 42.14 per cent & 40.49 per cent gains in transaction volumes respectively.
Part of the boost in transactions in the Dubai residential property market is that the market is more favourable for tenants and investors now that homes are more affordable.
According to Savills, the prime residential market saw prices fall by 1.9 per cent in the first half of the year due to the market being oversupplied.
Prime market prices have declined by 19.8 per cent in the past five-years to $600 a square foot ‘due to high levels of new build stock and global economic uncertainty,’ Savills said. Savills defines prime properties as those in the top 5 per cent of the market by price.
However, the DED, Department of Economic Development announced that the economic momentum picked up at the beginning of this year in light of the increase in new business licenses (up around 29 per cent compared to 2018) and optimism on new jobs, business performance and improved trade of local partners all contribute to a brighter future.
The new government legislations such as the ease of visa and business regulations have also recently been introduced.
Michelle Liddiard, Luxury Sales Specialist at Luxhabitat., said: ‘I believe that although these new legislations are extremely positive to the economy, many businesses are looking to test the waters before committing to long term expansion plans.’
‘This in hand, impacts consumer confidence, however, it will only be a matter of time where consumers build confidence and trust, which will, in turn, boost the real estate market and drive additional demand given that many of the legislations are linked to property ownership.’