January 2018: Dubai real estate projects and sales

06.02.2018

Meet the first month’s report on the best performing Dubai areas and the latest industry trends expected to stay here for good.

January is not the best performing month for real estate sellers. Thus, in January, off-plan sales were down 28 per cent in volumes and 40 per cent in value terms from a year ago. However, this decline was quite expected after exceptionally high demand for off-plan properties recorded bythe end of the 2017.

For the same reason, many Dubai developers braked with the launch of new off-plan projects during January, and only three large master developers — Emaar, Damac and LIV, which opened sales for its first LIV Residences project — set the pace for the off-plan sales.

Emaar managed to get sales confirmation for real estate units under construction in the amount of AED 1 billion in just a couple of days. The rush was sparked by a new Beach Vista project at the Emaar Beachfront.

As for the release rate, 800 real estate units went on the Dubai market in the first 30 days of the year. At the same time, 1,645 off-plan sales transactions were registered in January 2018 in Dubai, which is much more as against the 2,281 units 12 months ago. 

Reduced demand for off-plan apartments could mean that investors are bringing their money back into ready properties, experts say. Alternation in demand for ready and off-plan properties in terms of investors’ money flows is highly specific for the next growth level of any maturing real estate market, like that of Dubai. And it is possible that 2018 will become a turning point for investors to come back to ready-made housing market, although it is still too early to tell, experts say.

In a recent interview, the head of Danube Properties Rizvan Sajan noted that developers always take a wait-and-see attitude when new factors come to life, such as the introduction of VAT. “Only when things are clear will the off-plan launches pick up pace again,” said Sajan.

As for the best performing Dubai areas and projects, such developments as Town Square by Nshama saw sales growth by 29 per cent compared to the last year's data for January. The same was witnessed in Dubai South (119 per cent sales growth), MBR City and Jumeirah Village Circle.

Even in Dubai Marina, the number of transactions increased by 11 per cent, while the total value growth was just about 1 per cent, which indicates the priority buyers are giving to studios and smaller apartments. And MBR City and Dubai Creek Harbor attracted the biggest number of home buyers in January.

The final January tally for ready properties was 867 units against the 1,138 deals a year ago.

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