By Waheed Abbas, Khaleej Times
Dubai's real estate market is showing green shoots, with senior Dubai Land Department officials signalling higher transaction numbers year on year in the first two months of 2019.
The Developers Leading Sales
Led by Burj Khalifa developer Emaar, several big players continued to dominate new-home sales in Dubai's oversupplied market in early 2019, new data from online marketplace Property Finder shows. Dubai Hills Estate, Nakheel, Meraas, Damac Properties, Dubai Holding, Seven Tides International, Azizi Developments and Danube Properties were the other major developers to record positive residential sales.
| Developer | Homes sold, Jan–Feb 2019 | Share of total sales |
|---|---|---|
| Emaar Properties | 1,374 | 24% |
| Dubai Hills Estate | 601 | 10% |
| Nakheel | 359 | 6% |
By sales value, Emaar led with Dh3.56 billion, followed by Dubai Hills Estate with Dh1.078 billion and Dubai Holding with Dh66 million, according to Property Finder.
"In Dubai last year, we saw some long-time renters who converted to homeowners, in part due to attractive prices and payment plans in newly handed over projects. The combined effect is a healthy trend where off-plan investors are profiting from affordable housing and the number of homeowners is also increasing," said Lynnette Abad, director of Data and Research at Property Finder.
Off-Plan Sales
In off-plan sales during January and February 2019, Emaar sold 1,043 homes for a 34% market share, Dubai Hills Estate sold 539 (18%) and Dubai Holding 163 (5%). Emaar's off-plan sales totalled Dh2.45 billion, with Dubai Hills Estate and Dubai Holding second and third with sales the source reports as Dh688,200 and Dh308,242 respectively.
Danube's Strong 2018
Separately, Danube Properties released its 2018 results on Wednesday, reporting a 78.5% jump in residential units sold and an increase in its share of off-plan sales to 10.6% in 2018, from 5% the previous year.
Danube sold 1,869 homes for Dh978 million last year, compared with 1,047 properties worth Dh820 million in 2017, at prices substantially lower than the 2014 peak. Global ratings agency S&P had said Dubai property prices had fallen 25% to 33% in nominal terms since 2014.
Atif Rahman, director and partner of Danube Properties, said the market is the best regulated not just in the region but globally, and that it is an amazing time to do business.
"Danube Properties' stellar performance reflects our firm belief in the affordable housing market. Despite challenging market conditions, we have recorded 78.5 per cent growth in volumes and 19.27 per cent growth in the sales transaction value," he said.
Prices and Returns in Q1 2019
Most areas of Dubai saw modest falls in sale prices of under 6% in Q1 2019, with the exception of Business Bay and Jumeirah Beach Residence (JBR), according to Bayut data released on Wednesday. Business Bay recorded the largest fall in apartment prices in the quarter, while JBR prices fell 6.7%.
For villas, Damac Hills saw the biggest decline, with four-bedroom prices down 9.7% from Dh2.88 million to Dh2.6 million. This may reflect the handover of more units, adding a larger number of smaller homes than were available in Q4 2018.
Bayut data showed Dubai Marina was the most popular area for apartment sales, with upscale apartments offering an average return of 6.4%, while Arabian Ranches topped villa sales with a 5.8% return. The sub-community of Al Reem was, predictably, the most popular with potential investors, Bayut said.
Affordable communities such as International City and Dubai Sports City, however, saw prices rise for two-bedroom units. In International City, prices rose from Dh690,000 to Dh700,000, and in Dubai Sports City from Dh875,000 to Dh900,000. Both areas also offered the highest apartment returns in Q1 2019, with an average ROI of 9.7% in International City and 7.9% in Dubai Sports City.
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