Investors and top Dubai real estate agencies are rejoicing at the news that house sales just hit a 4-year high, according to recent data from the industry.
Residential transactions have increased considerably throughout the summer making the real estate industry in Dubai one of the most profitable markets of its kind in the world.
The figures show that more than 8,800 houses were sold in the emirate state in June, July and August of this year, which is a 33% increase from the same period last year.
The financial transactions followed the same ascending trend as almost Dh15 million worth of real estate deals were recorded during the summer. It is a significantly higher sum than last year’s summer season aggregate of Dh12.58 million.
Experts from the industry believe that the fast-approaching Dubai Expo 2020 is one of the reasons why so many foreigners choose to invest in the country's real estate sector.
Dubai Real estate specialists have identified three other trends that are responsible for the industry’s success:
1: THE MARKET FAVORS BUYERS
This is the best time in Dubai's history to invest in real estate. The Govt has even created a new real estate committee that will oversee the city's development concerning the current boom that the industry is going through.
After witnessing a revenue increase of Dh13.25 billion and Dh12.75 billion home sales in 2017 and 2016, the current year has brought an increase of 14.94%. These figures are expected to increase in the coming years in accordance with the city’s rapid expansion.
In 2018, almost Dh30 billion of the Dh162 billion invested in Dubai real estate came from foreign investors. This year has also seen an increasing demand from end-users to buy homes and settle in the city.
2: OFF-PLAN PROJECTS LEAD THE WAY
Dubai’s emerging real estate industry bases much of its success on off plan projects in Dubai.
During the summer of 2019, this sector of real estate has registered a 20.43% growth, in comparison to the same period of 2018.
Between June, July and August, Dubai recorded 3,801 sales transactions, which is a staggering increase from last year’s 3,156 deals and 2016’s record of 2,661 sales.
Top real estate agencies attract investors with projects that have a high potential for a profitable return on investment, like the eagerly anticipated new projects by Emaar, which are currently in high demand among foreign investors.
3: THE OFF-PLAN MARKET IS EXTREMELY LUCRATIVE
Off-plan projects in Dubai generated more than Dh7 million this summer from more than 5,000 real estate transactions. The developers attracted new investors with promising incentives, easy payment plans, and post-handover payment solutions.