She confirmed that the real estate market performed better than expected
Dubai Land: The sales price index rose by 0.79% in the second quarter
The index data showed that the market began to recover in the second quarter of the year. Archives
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The Dubai Land Department, in cooperation with "Property Finder", launched the fourth version of the official sales price index in Dubai. The index was taken from 2012 as the base year, from January 2012 as the base month, and from the first quarter of 2012 separating the base.
The month of June, through the strong factors it showed, laid the foundation for a faster than expected recovery, as the market is currently witnessing positive v-shaped recovery patterns, meaning that it is characterized by a rapid rise after the decline, to return through it to levels Transactions in February and early March 2020. The index for the year 2020 showed an increase in the second quarter by 0.79%, compared to the first quarter of the same year, and 15.3% when compared to the benchmark quarter of the first quarter of 2012.
The monthly index scored 1.113 points last June, compared to 1.121 in May, bringing the index price to 1.06 million dirhams.
Overview
In June 2020, the total monthly index recorded 1,133, bringing the price of the index to one million 66 thousand and 791 dirhams, which means a decrease of 0.09% since the beginning of the year, and a decrease of 0.7% on a monthly basis. But when looking at the quarterly index, and making a comparison between the first and second quarters, we can see that the index number increased by 0.8%, when it increased from 1,144 to 1,153, with a value of one million, 72 thousand and 450 dirhams.
Last June, the monthly index of apartments registered 1,179, with a value of one million 18 thousand and 974 dirhams. On the other hand, and specifically when looking at the quarterly index, and comparing the first and second quarters, it is clear that the index number rose by 0.58%, from 1.206 to 1,213, to record a value of one million, 26 thousand and 424 dirhams.
At the level of the monthly index of villas and townhouse units, we note that the index in June 2020 recorded 1,040, with a value of one million 628 thousand and 315 dirhams, a decrease of 1.79% since the beginning of the year, and a decrease of 1.89% per month. However, when comparing the first and second semesters, the quarterly index shows that the index number did not change at all, but remained at the level of 0.991, with a value of about one million 636 thousand and 95 dirhams.
Encouraging destinations
Commenting on the market’s performance as shown by the index, the Director General of the Dubai Land Department, Sultan Butti bin Mejren, said, “These data, which inspire hope in the hearts of the various parties, come to confirm facts agreed upon by everyone, foremost among which are the established rules that are based On it, the Dubai real estate market, which has been strengthened thanks to the strong infrastructure, and transparent legislation that has ensured the strengthening of confidence among investors at all levels.
He added: “We expect the market to continue revealing more growth in the second half of this year, after the pandemic has receded and the preparations made by the emirate for the return of various activities to normal, with the application of precautionary measures that depend on awareness by various groups of the public. According to the same report, the index constitutes an important step that helps Dubai achieve further progress in this aspect, given the adoption of a single indicator that can be used on a large scale by all market participants.
Bin Mejren continued: “On the other hand, it is expected that the unveiling of (GLL's Global Real Estate Sector Transparency Index 2020), and its move from 40th to 36th place, will contribute to increasing foreign direct investment and enhancing sector transparency. Dubai continues to make progress in its surroundings, while continuing to improve the availability of market data, in order to reach the highest ranks and enter global competitiveness in the field of real estate transparency.
Sector transparency
For her part, the Executive Director of the Real Estate Investment Promotion and Management Sector, Magda Ali Rashid, said: “The Global Real Estate Sector Transparency Report 2020 highlighted the prestigious position of Dubai, with its acquisition of the first place in the Middle East and North Africa region as the most transparent real estate market. This had a significant impact on the growth of the volume of foreign direct investment, as the real estate sector acquired a large share of it, which prompts us to coordinate with all concerned parties to meet the aspirations of the real estate investor in accordance with the best international standards and practices to preserve the image of Dubai and its internationally prestigious reputation.
She added, "On the other hand, we have come to notice the diversification of offers to suit different segments, and the provision of flexible payment plans to attract the likely buyers." Moreover, we continue to coordinate with the Supreme Committee for Real Estate Planning, in order to understand the market situation, and the needs and expectations of the various parties.
The most important results
These results came despite the total closure in Dubai in April, and partly in May, and a complete détente was achieved in June. As a result, the effects extend fully into the second quarter. And when it comes to real estate sales, Dubai recorded 5,605 transactions in the second quarter of 2020, worth 11.05 billion dirhams.
The secondary market acquired 40% of it, while sales on the map accounted for 60%. In June, the volume of sales transactions reached 2,361 transactions, amounting to 4.9 billion dirhams, and the secondary market managed to outperform off-line sales for the first time since the closure began at the end of the second quarter.
The data revealed by the index showed that the market began to recover in the second quarter of the year, and it is expected that this will continue in the third quarter of this year, albeit at a relatively slow pace at this time of the year. Government initiatives, and the stimulus packages that they contained, remain the primary motive for achieving further recovery and helping the market to continue the bullish trend.
The real estate market
"Dubai continues to consolidate its position as the most transparent real estate market in the MENA region," said Michael Lihiani, CEO and founder of Property Finder Agency. The index constitutes an important step to support the emirate, enable it to achieve prosperity and continue to advance forward, due to the many benefits it guarantees on a large scale to all parties in the market. The three-point increase in the GLL Transparency Index shows the value of this index for the market in the UAE, and the increase in foreign direct investment.
- Dubai rises on the global real estate sector transparency index from 40 to 36 place.
The emirate recorded 5,605 transactions in the second quarter, amounting to 11.05 billion dirhams.