Real estate developers attribute it to the diversity of offers and facilities for investors

Report: 50% increase in Dubai real estate sales during the third quarter

• The report showed a significant increase in the real estate sales price index in Dubai during the third quarter.

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A report by "Chestertons" stated that real estate sales in Dubai increased by 50% during the third quarter, on a quarterly basis, despite the repercussions of the Corona virus on the markets.

For their part, real estate developers attributed the increase in sales of Dubai real estate to the diversity of offers provided by developers, facilities to investors, in addition to price correction, which contributed to the availability of rewarding opportunities in the market.

The real estate market

In detail, the international company "Chestertons" issued its new report, entitled "Monitoring the real estate market in Dubai, during the third quarter of 2020", which showed a significant increase in the price index of selling real estate units in Dubai, during the third quarter of this year, but in In light of the continuation of the "Covid-19" pandemic, the market is expected to face more challenges at the level of sale and rent.

The report showed an increase in real estate sales in Dubai during the third quarter, by 50% on a quarterly basis. This is largely due to unfulfilled or “pent-up demand” during the second quarter, in addition to the diversity of offers offered by developers.

While the market witnessed an improvement in sales during the third quarter, apartment prices fell by 3.4% on a quarterly basis, while villa prices witnessed a slight decrease of 0.2%.

Rental market

In the rental market, the rental rates for apartments and residential villas fell by 3.6% and 1.2%, respectively.

The rental rates of apartments decreased by 3.6% during this quarter, as regions continued to record a decrease in average rental rates, as a result of the clear impact of the Covid-19 pandemic on the market.

As for residential villa rents, they were more flexible, registering a slight decline of 1.2% on a quarterly basis, with inquiries and demand for residential villas increasing significantly since the restrictions began in May, according to some real estate agents.

Sales market

In the sales market, the average price of apartments decreased by 3.4%, compared to the second quarter of 2020. In the villa sales market, the decrease was only 0.2% during the third quarter, which indicates the stability of the market in this quarter, compared to the previous quarter.

The "Palm Jumeirah" was the only area that witnessed a price increase of 2.2%, from 1820 dirhams to 1860 dirhams per square foot.

Prices in "Jumeirah Park" remained stable during the third quarter, at 720 dirhams per square foot.

Active movement

For his part, Chris Hobden, head of strategic consulting at Chestertons Middle East and North Africa, said: “Real estate transactions in Dubai witnessed an active movement during the third quarter, as a result of the start of the recovery in the last month of the second quarter, after easing restrictions imposed due to the outbreak of Coronavirus. ) ».

Dubai real estate

For his part, Chairman of the Board of Directors of "GVG" Real Estate Development Company, Ali Al-Salami, said that “Dubai real estate has succeeded in overcoming the difficult period related to the repercussions of the spread of the pandemic, as all the figures indicate a gradual growth of the sector, in conjunction with the increase in the desire to invest in real estate from Before individuals, and in conjunction with the facilities and real estate offers provided by real estate developers, in addition to the real estate correction in the market in the current period, as the increase in competition between real estate developers contributed to creating real estate opportunities in the market.

Al-Salami expected a gradual rise in real estate sales during the coming months, in conjunction with a growing demand for the sector, citing what was witnessed last August and September of good real estate offers by many developers, in addition to the arrival of prices to levels within the reach of many groups, whether citizens Or residents.

In turn, the CEO of "Standard Real Estate Company", Abdul Karim Al-Mulla, said that "the value of real estate transactions in the third quarter of this year was good, in conjunction with a price correction that created many opportunities for investors, in many residential categories, in addition to The developers present attractive offers in the market, the most prominent of which is the developer bearing the service fees for 10 years, and another promotional offer on the prices of some real estate at 50%, in relation to the purchase of the second unit.

Al-Mulla expected that real estate behavior will gradually increase until the end of this year, to prepare after that to achieve a boom in behavior, with the decline of the impact of the Corona virus on economic activities, which is indicated by real estate reports that deal with the real estate market, as all indicators tend to improve once. Other.

For his part, the real estate expert, Hisham Al-Asaad, said, "There are several factors that contributed to the increase in real estate sales during the third quarter, including price correction, developer offers, and payment plans," stressing that the Dubai market witnessed real estate demand for planned projects, in conjunction with existing temptations. In the real estate market by developers, and also in the secondary market, which has also flourished.

Al-Assaad stressed that the real estate sector in the emirate has shown great flexibility in facing the repercussions of the pandemic, whose economic effects have begun to decline, pointing out that residential real estate prices have reached attractive levels and expected returns within a short period, amid prospects for the return of price rises during 2021.

In turn, the head of W Capital real estate brokerage, Walid Al-Zarouni, stated that the real estate sector in Dubai in general has shown great flexibility in facing the repercussions of the (Covid-19) pandemic, adding that with the lifting of temporary restrictions on travel and movement imposed due to the Corona pandemic. Sales of real estate units witnessed a remarkable recovery with the support of several factors, most notably the government support packages for the emirate’s economy, in addition to the credit facilities provided by the Central Bank to the real estate sector.

Al-Zarouni explained that real estate reports showed the growth in demand for residential areas suitable for families by buyers of residential villas in Dubai, with a decrease in rents for this category, in light of the need for additional independent and safe spaces within the scope of their homes.

He added that the diversity of the offers offered by the developers contributed to attracting a large segment of buyers who considered it a great opportunity, in light of the expected significant improvement in the sector after the end of the pandemic.

Real estate sales

The total number of real estate sales reached 4,587 sales in the third quarter, compared to 1902 during the second quarter, compared to 4,084 sales in the third quarter of 2019. The total number of sales on the scheme reached 3,262 sales during the third quarter, a slight decrease from the second quarter, which recorded 3331 sales.

Town Square accounted for the largest share of completed residential unit sales during the third quarter, with 539 sales, followed by Dubai Marina with 304 sales.

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- "Palm Jumeirah" witnessed a rise in prices by 2.2% to 1860 dirhams per square foot.

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