October 2020 was another strong month for Dubai residential real estate. In October we had 3,395 property sales transactions worth AED 6.93 billion. This brings the overall total for Sales transaction this year to 27,815 with a total value of AED 57.43 billion.
665 secondary or ready to move in villas/townhouses were transferred in the month of October which is 7.2 percent higher than the second highest month, September 2020 with 605 transactions. This figure is 34 percent higher than the 3rd highest month ever, July 2020 with 496 transactions. For the past four months we have had the highest number of transactions for villa/townhouses consistently, each month being at an all time high with the record broken the very next month. This consistent growth started after May 2020 which had 110 transactions and since then has grown by over 500 percent.
Prices for villa/townhouses became more affordable over the years making it an extremely attractive option for real estate investors. Since the pandemic started, many started to spend more time in their homes. This prompted a new trend and people started to want more space and outside spaces for their family. People also started to migrate away from densely populated city centers and towards the suburbs. All of this has led to an all time high for transaction volumes in Dubai for Villas/Townhouses.
Dubai overall index has remained stable at 1.092 point. The Dubai apartment and villa/townhouse index remained stable as well due to more affordable units coming into the ready market.
The top areas for secondary (ready) Villa/Townhouses in October 2020 were Nadd al Sheba(11.8 percent), Town Square(7.8 percent), International City(6.7 percent), Arabian Ranches (6.4 percent) and Dubai Hills Estate (5.9 percent). 39 percent of the transactions were for 4-bedroom units, 34.7 percent for 3-bedroom units and 14.8 percent for 5-bedroom units.
Looking at proprietary data from Property Finder, the search trends shows that the top five locations for consumers searching for villa/townhouses were Dubai Hills Estates, Arabian Ranches, Palm Jumeirah, Damac Hills and Mohammed bin Rashid City. Keywords such as ‘upgraded’, ‘pool’ and ‘furnished’ were the top three keywords in the month of October 2020.
Overall for the month of October, 1013 villa/townhouses were transferred in both the off plan and secondary market. A total of 2,031 apartments were transferred with 1,128 in the secondary market and 903 in the off plan market.