19/10/2017 06:45 AST

The value of Dubai’s third quarter off-plan transactions jumped 118 per cent to Dh4 billion from the previous quarter, while there was a decline in the value and volume of sales of completed properties, a real estate consultancy said.

The number of off-plan deals in the third quarter climbed 86 per cent from the previous quarter, diminishing interest in built up units, whose volume fell 11 per cent and value plummeted 19 per cent, Chestertons Mena said.

“With reference to off-plan transactions, Dubai’s real estate market has witnessed seasonal peaks and troughs in the last year due to high levels of uncertainty,” said Ivana Vucinic, the head of advisory and research at Chestertons Mena.

“After a promising start to 2017, sales plummeted during a disappointing Q2. However, they have picked up positive momentum in Q3.”

Downtown Dubai accounted for half of the value of off-plan transactions in the third quarter, while Dubai South led in the volume of transactions with 1,151 deals, Chestertons said.

Downtown Dubai came second in terms of volume with 821 transactions, followed by Business Bay with 686.

“In Q4 we expect to see further corrections of sales prices and rents,” said Ms Vucinic. “A slight pick-up of completed unit transactions is expected. This will, however, have a negative impact on off-plan sales transaction, which we expect to decline and then stabilise.”

Apartment sales price fell 2 per cent in the third quarter, which could lead to further drops in completed unit values because investors are increasingly interested in off-plan properties that offer easy payment options.

Residential property transactions in Dubai are rising, but the price trajectory remains unclear as developers selling off-plan units drive down prices in the affordable housing sector and create a stock of low-quality residential units in the emirate, brokers say.

The number of deals for built units since the beginning of this year has increased by 7 per cent year-on-year, while off plan sales jumped 62 per cent, according to the estate agents Core Savills.


The National

Ticker Price Volume
QNBK 127.00 43,799
SABIC 104.61 3,002,041
BURUJ 35.17 343,045
STC 75.83 355,162
ALMARAI 51.15 371,471
SCACO 5.75 0
PETRORABIGH 23.55 3,067,281
Saudi vision calls for urban development that will last

23/02/2018

VISION 2030 adds sustainability to the agenda as it pushes to expand urban development; points include prolonged asset lifecycle, lower utility bills, and infrastructure to promote physical activity.

Saudi Gazette

Gulf banks catch eye of regional investors

23/02/2018

Gulf banks could benefit from rising global interest rates, a Bloomberg conference in London heard.

Hasnain Malik, global head of equity research at emerging markets bank, Exotix Capital fl

Arab News

Saudi Arabia approves landmark bankruptcy law

23/02/2018

Saudi Arabia has approved a new bankruptcy law, a move analysts predict will help attract foreign direct investment, boost credit growth and allow the country’s SME sector to thrive, as the process o

The National

UAE’s economic growth projected to pick up pace in 2018

23/02/2018

Economic performance is likely to improve in 2018 with firming oil prices, an improvement in global trade and the expected easing pace of fiscal adjustment, according to the latest assessment of the

Gulf News

Saudi Arabia to invest $64b in entertainment in next decade

23/02/2018

Saudi Arabia announced plans Thursday to spend billions on building new venues and flying in Western acts, in a total overhaul of its entertainment sector that would been unthinkable not long ago.

Gulf News