Dubai's real estate sales deals up 64pc in June, says report
DUBAI, August 11, 2020
Dubai's real estate sales transactions grew by 64 per cent in June, with an average of around 570 properties sold every seven days, according to the emirate's official sales price index Mo’asher.
In Q2, the emirate's apartment index rose by 0.58%, while villa/townhouse index remained unchanged, stated the report compiled by Dubai Land Department, in cooperation with UAE real estate portal Property Finder.
In June, the overall monthly index recorded 1.113 and an index value of AED1,066,791. This is a decrease of 0.09% since the beginning of the year and a decrease of 0.7% month-on-month, it stated.
The base year for Mo’asher is 2012 and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.
According to DLD, a strong growth in June laid the foundation for a faster recovery, and it was seeing patterns of a V-shaped recovery, which is characterised by a rapid rise following a decline.
The monthly index scored 1.113 in June compared to 1.121 the previous month, with an index value of AED 1.06 million.
However, if we look at the quarterly index and compare Q1 and Q2, the index number has increased by 0.8% from 1.144 to 1.153 with an index value of AED 1,072,450, said a senior official.
"We are currently back to the transaction levels of February and early March 2020. In Q2 2020, Mo’asher showed a 0.79% rise compared to Q1 2020 and 15.3% compared to the base year Q1 2012," remarked Sultan Butti bin Mejren, Director General of DLD.
“The data that inspires hope in the hearts of the various parties confirms the facts that everyone has agreed on, most prominently the well-established rules on which the Dubai real estate market is based upon, which was consolidated by the strong infrastructure and transparent legislation that ensured the enhancement of confidence among investors across all levels," noted Bin Mejren.
"We expect the market to grow in H2 2020 following the outbreak of the pandemic and for preparations made by the emirate for various activities to return to normal, making certain to apply precautionary measures that would depend on the public’s awareness. As per the same report, Mo’asher constitutes an important step that helps Dubai achieve further progress in this aspect, given the adoption of a single index that can be widely used by all market participants,” he added.
In June 2020, the monthly villas/townhouses index recorded 1.040 and an index value of AED1,628,315. This is a decrease of 1.79% since the beginning of the year and a decrease of 1.89% month-on-month. However, if we look at the quarterly index and compare Q1 and Q2, the index number has not changed at all and has stayed at 0.991, with an index value of AED 1,636,095.
Bin Mejren added: “On the other hand, Dubai’s movement up the ranks in JLL’s Global Real Estate Transparency Index 2020 from 40th to 36th is expected to contribute to an increase in foreign direct investment and enhanced sector transparency. Dubai continues to make progress in its surroundings, while continuing to improve the availability of market data to reach the highest ranks and enter global competitiveness in the field of real estate transparency.”
Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector at DLD, said: "JLL Index 2020 highlighted the prestigious position held by Dubai, ranking first in the Mena 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 real estate investors in accordance with the best international standards and practices to preserve Dubai’s image and its internationally prestigious reputation," stated Ali Rashid.
"On the other hand, we have taken note of the diversification of offers to suit different segments and the provision of flexible payment plans to attract the most likely buyers. Moreover, we continue to coordinate with the Higher Committee for Real Estate Planning to understand the market situation and the needs and expectations of the various parties," he added.-TradeArabia News Service
