Dubai’s real estate market is extensively recovering from its lowest levels, with buyers coming up with more than $19.8 billion worth of properties from all over Dubai for the whole of last year, the recent data provides.
A sum of 35,400 deals costing 72.47 billion dirhams was recorded in 2020, as per Dubai’s official sales price index Mo’asher, and provided by the Dubai Land Department (DLD) and Property Finder.
“To date, we have been headed towards a V-shaped recovery, and when we look at the numbers, from the lowest numbers we had in May (which had 1,452 transactions), the market had recovered by almost 270 percent,” a statement said.
From thousands of real estate deals last year, greater than half(21,044) were for secondary or ready units, while 14,356 of those transactions were for off-plan properties.
The market crashed to its lowest point in April and May 2020, as the COVID-19 lockdown was imposed. Buying activity has been increasing up since Dubai reopened the economy and resulted in some sense of normality.
Secondary residential properties were largely in greater demand, with the sales in the sectors encountering to the top in November with 2,179 transactions and in December with 2,579 sales, showing the highest in six years and nine months.
“Despite the drawbacks on the market in the lockdown, including restricted movement and market conditions, 2020 as a year performed better than expected in terms of numbers,” Property Finder said.
“There was a significant rebound in the real estate market after restrictions eased, and people wanted to improve their home lifestyle. With attractive housing prices and the lowest mortgage rates we have ever seen, it was inevitable,” said Lynnette Abad, director of research and data at Property Finder.
As per the data by Property Finder and DLD not indicating if the previous year’s wholesales exceeded the transactions noted in 2019.
Other research reports had pinned that, compared to pre-COVID-19 levels, the market previous year was still pending.
Analysts have expected further downfall in sales prices and rents this year, as the market has yet to the lower point.