According to the latest data issued by the “Biot” and “Dubizzle” websites, the prices of real estate offered for sale and rent in most of the prominent neighborhoods in Dubai remained stable during the first half of 2020. Prices witnessed slight declines not exceeding 4% in general, compared to the recorded prices During the second half of 2019, which confirms the flexibility of the real estate market in Dubai, despite the repercussions resulting from the spread of the Corona pandemic, and the temporary restrictions imposed on movement and travel during the past months, which affected the performance of the real estate market in Dubai, on Like most global markets, in addition to the impact it has on owners and real estate owners, they have become more flexible when negotiating sales prices.
A statement issued yesterday confirmed that potential buyers on both real estate platforms are still interested in the well-known areas in Dubai, which is famous for providing various facilities and services suitable for the family, such as: Dubai Marina, Downtown Dubai, Arabian Ranches, and Palm Jumeirah, while integrated communities continue, Such as: The circular Jumeirah Village, Dubai Marina, Mirdif, and Jumeirah to attract the interest of tenants in Dubai, according to data from both Bayot and Dubizzle.
According to the data of the Dubai Land Department, 15,897 sales transactions were registered in Dubai from January to June 2020, with a total value of 32.5 billion dirhams. Despite this expected decline in real estate transactions, during the first half of this year, which is due to the temporary restrictions on movement applied throughout the country, it is likely that the real estate market will witness an increasing recovery during the coming months, due to the economic support packages and measures The pre-eminence approved by the central bank in the state, which is to increase the ratio of the mortgage loan to the value of the property for the first-time real estate buyer.
Real estate sale
According to data from “Bayot” and “Dubizzle” for the first half of this year, the demand for residential areas suitable for families increased by buyers of residential villas, where Arab ranches topped the list of the most desirable areas for buying villas during that period, followed by the areas of Palm Jumeirah, and «the villa".
The average price per square foot in Arab ranches increased slightly by 1.6% in the first half, rising from 882 dirhams to 896 dirhams per square foot.
The Palm Jumeirah area maintained its real estate prices largely unchanged, with the average price per square foot at 2027 dirhams in the first half.
As for the new areas in Dubai, such as: “Dubai Hills Estate”, “Dubailand”, “DAMAC Hills (Akoya by DAMAC”, and “Akoya Oxygen”), it remained among the most attractive areas for buyers and investors of villas during the first six months of the year. 2020.
Regarding the prefabricated apartments offered for sale, Dubai Marina continues to occupy the forefront of the list of areas most requested by buyers and tenants during the first half of this year.
Promising opportunities
Meanwhile, real estate under construction in Dubai continued to provide promising opportunities to invest in integrated projects at reasonable prices. According to BIOT website, the Akoya Oxygen and Dubailand regions were the largest demand by potential investors interested in buying real estate on the scheme during the first half of this year.
Real estate lease
Mirdif remained the most sought after area for renting villas in Dubai during the first half. The average rent for villas in the region decreased from 99 thousand to 95 thousand dirhams annually, 4% for three-bedroom villas. While the rents of villas consisting of four and five bedrooms remained stable during the same period, at an average of 115 thousand and 123.5 thousand dirhams annually, respectively.
The distinct areas, such as: Jumeirah, the Arabian Springs and Ranches, witnessed a stability in the average annual rents in general during the first half. The list of areas most requested for renting villas included some well-known residential areas, such as: Al Barsha and Umm Suqeim, in addition to new residential complexes, such as: Dubai Hills Estate, Akoya Oxygen and Reem.
The circular Jumeirah Village continued to top the list of the most sought after tenants. The annual rents in the region witnessed slight declines in the first half, where the average studio rent reached 34 thousand dirhams annually, 50 thousand dirhams annually for one-bedroom apartments, and 72 thousand dirhams annually for two-bedroom apartments.
Dubai Marina ranked second in the list of areas that are most in demand to rent apartments in Dubai, as it witnessed slight declines ranging between 2 and 3% during the same period.
The old neighborhoods, such as: Bur Dubai, Al Nahda and Deira, in addition to the Dubai Silicon Oasis and the International City, witnessed stability in average rents during the comparison period.
An unprecedented challenge
"We have seen citizens and residents in the UAE join forces with the rational government to meet and overcome the challenge of the Corona crisis," said CEO of BIOT and Dubizzle, Haider Ali Khan. Likewise, the real estate sector in Dubai has been able to adapt to the data imposed by the epidemic during the past months, most notably by relying on digital tools to facilitate real estate activities, and to keep in constant contact with potential buyers and tenants. ”