Dubai sees property deals worth AED5.6 billion during Ramadan 2019, reveals Property Finder

Wednesday 12 June 2019
Dubai
Dubai - MENA Herald:

The Holy Month of Ramadan has been eventful for the Dubai property market in 2019, both in terms of the volume and value of property transactions concluded. Property deals cumulatively worth AED5.6 billion were transacted in Dubai solely during Ramadan this year, reveals analysis by the Research & Data team at Property Finder, the MENA region’s leading property portal.

Breaking this down further, there were off-plan transactions worth AED2.63 billion in Dubai during Ramadan 2019. This is an increase of 51% compared to off-plan property deals worth AED1.74 billion during Ramadan 2018 and an increase of 54% compared to off-plan transactions worth AED1.71 billion during Ramadan in 2017.

“It is also important to note the total average price for off-plan residential transactions has increased year on year. The overall average price for off-plan residential transactions in 2018 was AED 1.23 million while in 2019, the overall average price is AED 1.42 million,” says Lynnette Abad, Director of Research & Data, Property Finder.

Most off-plan property transactions during Ramadan this year have been in Downtown Dubai, Meydan One and The Lagoons in Dubai Creek Harbour. Projects like Dubai South, Dubai Hills Estate, Mohammed Bin Rashid City and Jumeirah Village Circle (JVC) also saw healthy off-plan demand.

The secondary property market in Dubai did not fare too badly either during Ramadan 2019. Dubai witnessed AED3.04 billion worth of properties exchange hands on the secondary market during the Holy Month. This translates to a decrease of 36% compared to similar deals worth AED4.75 billion during Ramadan 2018 and a dip of 16% compared to deals worth AED3.61 billion signed during Ramadan 2017.

Ramadan has coincided with summer since 2008. However, this year is different since Ramadan was observed before summer. House viewings tend to decrease during summer in Dubai owing to the heat and school holidays, resulting in several families travelling.

In 2018, 8% of the overall property sales transactions in Dubai happened during Ramadan (May-June). These were cumulatively worth AED 6.49 billion.

Volume of transactions

In terms of volume, Dubai witnessed a total of 3,089 transactions during Ramadan 2019 compared to 2,684 transactions for the same timeframe last year.

There were 1,851 off-plan transactions registered in Dubai throughout the Holy Month in 2019. This is a 31% increase compared to the 1,417 off-plan deals transacted during Ramadan 2018 and up 34% compared to the 1,377 off-plan property deals during Ramadan 2017.

“Off-plan sales are continuing strong this year and did not slow down during the month of Ramadan. Based on all the data, it is clear that Ramadan has remained consistent with all the other months throughout the year over the last few years. Therefore, the statement that property sales slow down during Ramadan is pure myth,” adds Abad. 

As for the secondary market, Dubai witnessed 1,238 property transactions through the course of Ramadan 2019. This is down 2% compared to 1,267 similar deals during Ramadan 2018 and up 6% compared to 1,165 such transactions in Ramadan 2017.

Demand for secondary properties was strong in established communities such as Business Bay, Dubai Marina, JVC, International City, Jumeirah Lakes Towers and Emirates Living during Ramadan this year.

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