The property market of Dubai has shown signs of recovery in the second half of 2020, In Spite of the restriction on mobility and also the economic downfall which was the outcome of the coronavirus pandemic.
“Despite early forecasts during the height of mobility restrictions that prices would fall by much higher margins, the market has quickly recovered with price reductions largely being in line with the trends seen across the previous two years,” Bayut & Dubizzle 2020 Annual Property Market Report showed.
Relying on the information gathered from the two property portals, the sales and rental markets in the emirate have provided a high level of tenacity, along with the price depletion continuing in line with the patterns observed in 2018 and 2019.
The groundbreaking traffic of more than 7 million sessions generated on Bayut & Dubizzle in one month during December 2020, points to hunger coming back to the market in the second half of 2020, the report said.
As per their combined annual sales and rental market reports for the year 2020, the famous neighborhoods have reported large price falls between 2 -10 percent for properties for sale, rental properties have remarked the reduction between 9-17 percent.
Rental results were the highest in Dubai’s International City in the year 2020 with the average rental results at 8.5 percent as investors went for affordable apartments with a bigger ROI(return on investment).
Under the category of luxury apartments, Dubai Marina resulted in an ROI of 6.2 percent.
In accordance with the data provided by the Dubai LAnd Department (DLD), transactions costing more than 60 billion dirhams took place in 2020 of which 20,716 were residential sales transactions costing 27.2 billion dirhams.
Off-plan transactions provided for 53 percent of total residential transactions at 14.4 billion dirhams. Prepared properties deals were costing 12.8 billion dirhams.
Emaar’s Dubai Creek Harbour being the favorite in off-plan apartment sales where the Golf Place in Dubai Hills Estate has grabbed the attention of buyers who were looking for upscale off-plan villas.
“While this could be the result of ready property owners evaluating the market situation during the pandemic, it has also highlighted the accessibility of the off-plan market, especially for first-time buyers and smaller investors,” said Fibha Ahmed, the director of sales for Bayut & Dubizzle.