#Report: Dubai Hills Estate real estate market Performance Q1 2020

Comparison Between Q1 2019 vs Q1 2020 (Secondary market sales)

 

2020

 

Total number of sales transactions:

118

Total Value of sales transactions(AED):

198,570,674

Highest value transaction(AED):

75,000,000

Average Price per SQ.FT(AED):

1,161

 

 

2019

 

Total number of sales transactions:

79

Total Value of sales transactions(AED):

465,588,832

Highest value transaction(AED):

16,514,888

Average Price per SQ.FT(AED):

1,347

 

5 Most Expensive Secondary Market Transactions in 2020

7 BR villa, Total size of 42,543 SQ.FT at Dubai Hills Grove sold for 75,000,000 AED

6 BR villa, Total size of 13,206 SQ.FT at Parkway vista sold for 11,500,000 AED

5BR villa, total size of 6,057 SQ.FT at Sidra villas 1 sold for 5,453,000 AED

5BR villa, total size of 6,086 SQ.FT at Sidra villas 2 sold for 5,309,000 AED

5BR villa, total size of 6,153 SQ.FT at Sidra villas 1 sold for 5,222,000 AED

 

Comparison Between 2019 vs 2020 (Off Plan-Primary Market)

 

2020

 

Total number of sales transactions:

150

Total Value of sales transactions(AED):

206,800,000

Highest value transaction(AED):

4,853,888

Average Price per SQ.FT(AED):

1,491

 

 

2019

 

Total number of sales transactions:

819

Total Value of sales transactions(AED):

1,058,924,559

Highest value transaction(AED):

4,842,888

Average Price per SQ.FT(AED):

1,393

 

5 Most Expensive Off Plan- Primary Market Transactions in 2020

4BR Villa ,total size of 3,479 SQ.FT at Club Villas sold for 4,853,888 AED

4BR Villa ,total size of 3,366 SQ.FT at Club Villas sold for 4,784,888 AED

5BR Townhouse ,total size of 3,237 SQ.FT at Maple 3 sold for 3,442,888 AED

3BR Villa ,total size of 2,893 SQ.FT at Club Villas sold for 3,329,888 AED

3BR Villa ,total size of 3,061 SQ.FT at Golf Grove sold for 3,297,888 AED

 

 

Analyst note:

405 Million AED was spent on property purchases in Dubai Hills Estate during Q1 2020 in both primary and secondary markets, transactions were balanced between both markets where the primary market represented 51% of the total properties sold and the secondary with a share of 49%.

The secondary market registered an increase of 49% in the number of properties sold in the community comparing with the same quarter of 2019 however, the value of transactions decreased by 57% due to a very high number of  luxury properties transferred last year comparing with a more affordable properties being sold this year similar to maple townhouses  and mulberry apartments .

With a difference of 28%, Villas & townhouses transacted at an average price per Sq. Ft of 974 AED while apartment transacted at an average price per Sq. Ft of 1,349 AED

The lower price and service charge payable per Sq.Ft attracted the majority of property buyer to invest in villas and townhouses of Maple and Sidra, transactions in these sub communities represented 70% of the total transactions in the secondary market segment with a total investment of 138 Million AED versus 59 Million AED invested in apartments of Mulberry and Acacia.

The primary market registered a decrease of 80% in both number and value of properties sold during Q1 2020 comparing with Q1 2019 ,it’s expected since there is way less new developments being launched by the developer Emaar in the community that's nearing maturity.

There is another expected aspect that we would like to point out , the average price per Sq. Ft increased by 7% in the primary market comparing with the same quarter of last year and that's simply because the majority of Dubai developers changed their sales strategy to attract more end users to buy properties with a long term payment plans having that said , it could only be done by increasing the price slightly, especially when the developers are asked to offer service charge waivers and DLD registration fee waivers on top of the long term payment plan.

as mentioned in our last year’s Dubai Hills Estate report "going forward demand will be driven by end user buyers ,Dubai Hills Estate will attract a lot of tenants from surrounding communities once completed." , we’re already witnessed the mentioned with the recent sub communities hand over, this trend is expected to continue during 2020 & 2021 , we may witness a slight drop in the average price per Sq. Ft for apartments due to the high number of comparable apartments expected to be delivered in the coming 12 month , apartment selling prices has to be be adjusted by those who wish to exit from the market in order to make it more interesting for buyers and investors, unlike the villa/townhouse price per Sq. Ft that’s expected to remain stable and resistant due to the high demand and less comparable developments being delivered soon.

 

 

Source : Research Team Through DLD/ Price Finder