Analysts report that the net cost of cottages in Dubai increased by almost a third in October 2021. At the same time, the pace of sales began to fall, and this primarily concerns real estate of the off-plan category. Why villas for sale in Palm Jumeirah are interesting for investors, whereas the equal properties gave up its position in Dubai Sports City? Read this article and the answers.
According to the information provided by the consulting agency ValuStrat, in some communities of the emirate, net gains amounted to 31% compared to last year’s figures.
At the same time, a drop in activity in the sector of low-rise detached buildings is reported. This is especially true for development projects under construction. The total number of purchase and sale transactions in the off-plan category decreased by 4% compared to the previous month.
ValluStrat informs that the VPI value index for the emirate increased by 12.6% compared to the same period last year. Monthly growth accelerated from 0.7% in January to 1.8% in the last month.
Who won and who lost
The leading positions in the category of cottages are occupied by such communities as Arabian Ranches, Jumeirah Islands, Lakes, Meadows.
In the segment of apartments, the areas located near the coast are most in demand. These are Palm Jumeirah and Jumeirah Beach Residence.
However, the agency also reports cases of negative dynamics, as not in all communities sales have increased or remained at the same level. A slight negative trend is noted in Dubai Production City and Dubai Sports City communities, as consumer interest in these areas decreased by an average of 2.7%. Jumeirah Village began to attract buyers less by as much as 6%.
Despite the fact that the total volume of transactions has decreased, the demand for secondary real estate remains at a high level. ValluStrat reports that the number of off-plan transactions decreased by 15%, while the secondary market showed a positive trend of 6.6%.
Moreover, sales of ultra-luxury real estate continue in Dubai. In October, 19 development projects were sold at a cost of over AED 30,000,000.
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