Dubai property transactions back at pre-Covid levels
Property transaction levels in Dubai in June hit what was previously recorded in February, setting a foundation for recovery of the local property sector for the second-half of 2020.
The second-quarter Mo'asher report released by the Dubai Land Department (DLD) and Property Finder showed that a strong June performance laid the foundation for a faster recovery. The market is seeing patterns of a V-shaped recovery, which is characterised by a rapid rise following a decline.
"We are currently back to the transaction levels of February and early March 2020," the report said.
In June, the volume of sales transactions stood at 2,361 worth Dh4.9 billion and the secondary market, for the first time since the lockdown began, had higher sales transactions than off-plan transactions at the end of Q2.
Dubai saw 5,605 sales transactions in Q2 2020 worth Dh11.05 billion. The secondary market saw 40 per cent of the transactions in Q2, while off-plan accounted for 60 per cent of the transactions.
These results were achieved despite the fact that Dubai was on full lockdown in April, partially in May, and didn't start opening up fully until June. Hence, the entire Q2 was affected by the pandemic.
"We expect the market to grow in second-half of 2020 following the outbreak of the pandemic and for preparations made by the emirate for various activities to return to normal, making certain to apply precautionary measures that would depend on the public's awareness" said Sultan Butti bin Mejren, director general of the DLD.
He added that Dubai's movement up the ranks in JLL's Global Real Estate Transparency Index 2020 from 40th to 36th will contribute to an increase in foreign direct investment.
Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector at DLD, said that JLL's Global Real Estate Transparency Index 2020 ranked Dubai first in the Mena region as the most transparent real estate market.
"This had a significant impact on the growth of the volume of foreign direct investment as the real estate sector acquired a large share of it, which prompts us to coordinate with all concerned parties to meet the aspirations of real estate investors in accordance with the best international standards and practices to preserve Dubai's image and its internationally prestigious reputation," she said.
Michael Lahyani, CEO and Founder of Property Finder, said that Dubai continues to strengthen its position as the most transparent real estate market in Mena.