In the first 9 months of 2018 till the end of September, Dubai's property sellers and buyers contracted for 39,802 real estate deals.
Dubai's property market transacted 39,802 real estate deals worth AED162 billion in total during a period from the beginning of 2018 till the end of September, according to a latest report released by the Dubai Land Department (DLD). This was almost a quarter down from the last year’s transactions value recorded during the same time period last year, when AED204 billion worth of real estate transactions were done through 52,170 sales transactions.
"These positive repercussions will continue to resonate in the short and long term," Sultan Butti bin Mejren, director-general of DLD, commented on the report.
According to the report, about 11,000 mortgage transactions worth over AED86 billion were also recorded during the mentioned period.
The decline in value of real estate transactions is primarily on account of the decline in off-plan sales in 2018, DLD’s experts say.
"Off-plan sales, which accounted for nearly 70 per cent of all transactions in 2017, are down by approximately 40 per cent on a year-to-date basis. There are a plethora of reasons for this, not the least of them being the fact that incentives in the off-plan space appear to have 'maxed out' and developers have been matching incentives in the ready space," said Hussain Alladin, head of research at GCP.
"Consequently in the ready space, we expect transactional activity to end up higher than last year. This is a healthy phenomena, as the market volume starts to correct towards the secondary market. However, it is unlikely that off-plan transactions will catch up in the last quarter of the year," added Alladin.
Indeed, last year, there was a huge amount of the off-plan launches, when more than 66,000 units in total were introduced to the market with a range of attractive offers and incentives. This year, the developers have greatly reduced their offerings, with only around 15,000 units launched. Thus, naturally, there were fewer sales in the market.
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