While the lockdown measures were followed everywhere in the UAE to prevent the COVID-19 spread, 1824 real estate sales transactions were recorded in Dubai in the month of April 2020. The value of these transactions was over Dh3.62 billion. The breakdown of this total shows that most of the transactions (123) took place in The Lagoons in Dubai Creek Harbour. On the other hand, Jumeirah Village Circle, Villanova, Umm Suqeim, and Business Bay recorded 112, 110, 105, and 97 transactions respectively.
70% of these transactions recorded were made for off-plan sales. This figure shows that people’s interest has drifted towards the off-plan market. Villanova remained the preferable choice of buyers for off-plan townhouses and villas for sale in Dubai. However, Dubai Creek Harbour emerged at the top spot for those looking for off-plan apartments.
A total of 12,254 property sales transactions worth Dh24.15bn have been recorded in Dubai this year to date. Reports show that the secondary market had relatively lower transactions recorded as compared to the off-plan market. Dubai Marina, Jumeirah, Mudon, Downtown Dubai, and Dubai Hills Estate are some of the communities that showed dominance among buyers and investors.
For villas and townhouses, Villanova, Serena, Dubai South, Jumeirah, and Arabian Ranches are the top five neighbourhoods since the start of the year. For apartments, the communities that remained at the forefront are Dubai Creek Harbour, Jumeirah Village Circle, Umme Suqeim, Jumeirah Beach Residence, and Downtown Dubai.
In April, the focus of buyers and investors was directed towards Palm Jumeirah and Dubai Marina as the stats show that 21% of all searches were received by these two neighbourhoods. As per real estate experts, COVID-19 shifted the focus of investors and buyers towards villas and townhouses. The increase in the percentage of searches on these living spaces recorded clearly depicts this fact. Even now, when the lockdown has been eased, the trend has not changed. As a matter of fact, there has been a 30% increase in the queries for villas in Dubai made to real estate agents as compared to the same time, last year. Not only people are more interested to buy villas, the demand for rental villas has also grown. Compared to the same week in the last year, a 56% increase has been noted in their enquiries.
The chairman of Damac, Mr. Hussain Sajwani, believes that the property market of the UAE can be back on the track in the year 2021 as the Expo 2020 (now shifted to 2021) will help to escalate economic activities. However, he also maintained that COVID-19 could halt the launch of new properties under development. This halt can also be attributed to the lack of demand caused by the global pandemic and the financial troubles it has brought upon people with it. Having said that, those who are looking for a property in Dubai, it can be a feasible situation for them as the mortgage rates are on the lower side in the current times.