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Special: Dubai realty could see a V-shaped recovery

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on October 27, 2020 | Last updated on October 28, 2020 at 02.37 pm
Sale prices in Dubai's prime areas have risen while rents have consistently stayed the same. Photo: Alamy

Dubai’s residential sector witnessed a more buoyant third quarter.

The real estate market in Dubai recorded 3,849 sales transactions in September 2020 worth Dh8.943 billion, surging 55.3 per cent month-on-month reflecting a ‘V-shaped recovery’, latest data from Dubai Land Department shows.

In September, weekly sales averaged at 872 with off-plan segment accounting for 46 per cent and the secondary segment claiming 54 per cent, according to sixth edition of Mo’asher, Dubai’s official sales price index DLD has launched with Property Finder.

“This brings the year-to-date total to 24,473 sales transactions worth Dh50.62 billion. As was predicted, we have seen a V-shaped recovery in the real estate sector and it was enforced with September results as we started to see the same level of both transaction volume and values,” said the index report.

According to the latest research from Chestertons, Dubai’s residential sector witnessed a more buoyant third quarter, with pent up sales demand along with lower prices and rents spurring market activity resulting in a 50 per cent surge in quarter-on-quarter transactions, albeit down 21.7 per cent year-on-year.

In July 2020, the DLD index recorded an overall value of 1.095, the Dubai apartment index reached 1.153 and the Dubai villa/townhouse index reached 0.998. In the third quarter, the Dubai overall index reached 1.136 with the apartment index at 1.197 and villa/townhouse index at 0.983.

The report noted that September was a very strong month for Dubai residential real estate. The total value of the transactions at Dh8.943 billion was 89.5 per cent higher than August 2020 and 39.1 per cent higher than September 2019.

Lynnette Abad, director of Research & Data at Property Finder, has said there had been quite an array of interesting dynamics in the Dubai real estate market these past few months. “We have low supply in prime areas where demand is high which has caused multiple buyers and bids on properties.”

In an earlier report, Abad said sale prices in prime areas have risen while rents have consistently stayed the same. “Our broker clients are having all time record breaking months. Needless to say, pent up demand, best ever mortgage rates and lower down payments have been the perfect combination to stimulate the Dubai real estate market.” — issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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