Off-plan property deals in Dubai rose in the third quarter of 2017 according to the latest report from Chestertons MENA.
The number of off-plan property transactions increased by 86 per cent on a quarterly basis from the second quarter, while the total value of the transactions rose by 118 per cent to Dhs4.04bn.
The area with the most transactions was Dubai South with a total of 1,151, followed by Downtown Dubai with 821 transactions and Business Bay with 686.
Downtown Dubai led the way, accounting for around 50 per cent of all off-plan property transactions with a total value exceeding Dhs2bn.
Head of Advisory and Research at Chestertons MENA, Ivana Gazivoda Vucinic, said: ‘With reference to off-plan transactions, Dubai’s real estate market has witnessed seasonal peaks and troughs in the last year due to high levels of uncertainty. After a promising start to 2017, sales plummeted during a disappointing Q2 however they have picked up positive momentum in Q3.’
However, the report stated that increased interest in off-plan units had a continued negative impact on completed units in the third quarter.
Transactions for completed units saw an 11 per cent drop in volumes and a 19 per cent fall in values during the quarter.
Vucinic commented: ‘A slight pickup of completed unit transactions is expected in Q4. This will however have a negative impact on off-plan sales transactions which we expect to decline and then stabilise.’
Sale prices of completed apartments fell by 2 per cent overall during the third quarter of 2017, while the report stated that villa sale prices were ‘more resilient due to the higher level of corrections during the previous quarters’.
As in most property markets, prices varied between areas, with sales rates for apartments at The Greens and Dubai Marina increasing by 13 per cent and 2 per cent respectively, whilst prices at Dubai Silicon Oasis dropped by 9 per cent.
Overseas property investors considering Dubai should research areas carefully.