Dubai Market Report for H1 2020: Prices remain favourable for buyers

DUBAI MARKET REPORT FOR H1 2020: PRICES REMAIN FAVORABLE FOR BUYERS

As we enter the second half of 2020, it’s time to look back on the performance of the city’s property market with a detailed H1 2020 Dubai Market report. Data engineers analysed the performance of the real estate market and studied the evolution of Dubai property prices in the first six months of 2020, compared to the last six months of 2019 to identify some of the common trends for consumer interest in the emirate’s property market. If you are curious to know more about how prices fared in the months between January to June, take a look at in-depth H1 2020 Dubai Market report for more information.

Just like most other parts of the world, Dubai also experienced the impact of COVID-19 during the first half of 2020. Temporary restrictions on movement and travel also came into effect in the UAE during this period.

As a result, real estate transactions in Dubai’s property market have predictably seen a decline in H1 2020, as per data from the Dubai Land Department. Property prices in Dubai have also largely remained favorable to prospective buyers, with the exception of certain luxury areas such as Arabian Ranches, Downtown Dubai and Palm Jumeirah where there has been a slight uptick in average sales price-per-square-foot.

Analysts of Dubai property trends also reveals that home buyers and investors are keen on established, well-integrated communities such as Dubai Marina, Arabian Ranches and Palm Jumeirah with upscale amenities and reputed developers behind them. New developments close to the city’s main highways such as Dubai Hills Estate and DAMAC Hills are also capturing the interest of buyers while tenants in Dubai remain firmly interested in established, family-friendly neighborhoods.

For an accurate representation of Dubai property prices, The first half of 2020 Market Report compares the average price-per-square-foot for an area when it comes to properties for sale. Please note that these prices are subject to change based on multiple factors including amenities available, the developer involved in the project, location and other key factors.

Keep reading to know more about Dubai real estate market report on the evolution of sales and rental prices in key neighborhoods.

PROPERTY TRANSACTIONS ACCORDING TO DLD IN TOP NEIGHBORHOODS IN DUBAI

Area No. of Property Transactions in 2019 Value of Transactions in AED for H2 2019 No. of property Transactions in H1 2020 Value of Transactions in AED for H1 2020
Dubai Marina19374.56 B15283.37 B
Palm Jumeirah4201.6 B4351.19 B
Jumeirah Village Circle8481.44 B11741.36 B
Arabian Ranches125336.9 M86284.03 M
Downtown Dubai9862.65 B9512.59 B
The Villa15592.35 B8511.24 B
Dubailand74269.73 M188419.68 M
Dubai Hills Estate10502.36 B5581.52 B
Dubai Silicon Oasis324315.12 M266220.16 M
Jumeirah Lake Towers6931.03 B579623.11 M

Property search trends in Dubai reveal that historically-popular areas such as Dubai Marina, Palm Jumeirah, Arabian Ranches, Jumeirah Village Circle and Downtown Dubai have dominated consumer interest in the first half of 2020 as well. Up-and-coming suburbs with off-plan properties, such as Dubai Hills Estate and DubaiLand, are also appealing to prospective buyers and investors.

According to DLD’s Dubai REST app, there were a total of 15,897 sales transactions recorded in the first half of 2020, amounting to a total value of AED 32.5B. Overall, property transactions in Dubai’s top neighbourhoods have declined in H1 2020, when compared to H2 2019. This decline was largely caused by the temporary restrictions on the movement of citizens and residents within the country as part of the UAE’s efforts to combat the COVID-19 pandemic, which impacted property viewings and other real estate activity.

However, with the movement restrictions being largely lifted across the UAE toward the end of June, real estate transactions in the Dubai property market are expected to gradually pick up again. This will also be facilitated by innovative, digital tools such as property video tours and interactive 3D floor plans, which can help property seekers in the emirate stay safe while making crucial purchasing decisions. The financial measures introduced by the UAE’s Central Bank to protect the economy including the real estate sector, such as increasing loan-to-value ratios for first-time buyers by 5 percentage points, will also further bolster the confidence of prospective buyers.