Based on the previous report, Dubai property market has finally touched the pre-COVID sales levels. This depicts the sector is on road to recovery after the novel coronavirus jolted the whole world.
According to the DLD second-quarter Mo’asher report, quick recovery in the market can be expected. This can be attributed to the strong performance recorded in June 2020. Experts believed that a quick recovery in a V-shaped pattern is on the cards. The report specifies that the transaction levels in June are similar to that of February and early March.
At the end of the second quarter of 2020, the secondary property market experienced higher sales transactions as compared to off-plan properties in Dubai. The situation was the opposite throughout the lockdown imposed due to the global pandemic. The month of June also witnessed 2,361 property sales transactions worth AED 4.9B. This serves as a testament that the market is recovering from the pandemic.
Statistics from leading property finder portals show that 5,605 transactions were made during the second quarter of 2020. The value of these transactions was recorded at AED 11.05B. Breaking down these transactions, records suggest that the secondary market accounted for 40% of these transactions. On the other hand, off-plan properties consumed the bigger portion i.e. 60%.
As per real estate experts, these records represent a positive performance due to the fact that the emirate experienced a full lockdown in April. In May, there was a partial lockdown. It was in June that life returned to normal. Experts believe that H2, 2020 will show more progress as the emirate welcomes tourists back. Also, the upcoming event of the Indian Premier League (IPL) and Expo 2020 is expected to help the property market.
DLD’s Director-General, Sultan Butti bin Mejren, expresses his views that as various activities are returning to normal in Dubai, the market is expected to improve in the 2nd half. However, it will be made sure that precautionary measures and SOPs are followed. He also states that Dubai has moved up in JLL’s Global Real Estate Transparency Index 2020 rankings. It has jumped to the 36th spot from 40. This improved performance will help to get more foreign direct investment.
Real estate experts also believe that Dubai is strengthening its status in the Middle East and North Africa (MENA) as the most transparent property market.