Based on data published by the Dubai Land Department, Global Capital Partners submitted a report on the number of home purchase deals concluded in 2016 in different Dubai areas.
While the average rate of property buyers’ activity in Dubai has reached 12% in the last quarter of the previous year and two months of the current year, some of the city locations have even overtopped this threshold significantly. In such residential areas as Sports City and Jumeirah Park the increase in number of registered transactions amounted to 32 and 34%, while other developments as the Springs and Meadows reached the margin of 40% growth in buyers’ activity as of the end of January.
Apartments in IMPZ area of Dubai are also in great demand. In this area, where developers are switching their attention from commercial to residential real estate sector in recent months, the number of transactions increased by 30% quarter-on quarter.
Transaction growth, however, remains highly localized in Dubai. Most of the transactions were recorded at the mid-market, while Dubai Marina and Downtown Dubai saw a slight slowdown.
Sameer Lakhani, Managing Director at Global Capital Partners, also noted that one of the main trends that is showing up at the Dubai real estate market now relates to what’s happening in the ready-to-occupy space versus off-plan. The latter continues to exhibit negative premiums for the most part.
“This plays out over a longer period of time ... but the dichotomy in price action between the upper and mid-income communities both in the ready and off-plan space suggests that home owner capital formation is well on its way,” he added.