Dubai real estate begins recovery; Property sale volume & value rises in Q3

Dubai Land Department (DLD), in cooperation with Property Finder, launched the sixth edition of Mo’asher, Dubai’s official sales price index which revealed that property transaction value in Dubai has increased 65 percent in the third quarter of the year compared to the second quarter’s $4.94 billion.

In the 3 months from July to September, the number of deals recorded by DLD reached 8,675, which is a 55 percent increment, the listing portal Property Finder, that aids in compiling the emirate’s real estate index said.

With the total volume of 24,473 deals, the overall value of property transactions that happened in the first nine months of 2020 has reached $13.78 billion.

On analyzing residential real estate, September witnessed the strongest response with 3,894 deals. From August, the volume of sales jumped to 53.3 percent, the DLD stated. The value of the transactions reached $2.434 billion, which marks a 39.1 percent increase year-on-year.

“As was predicted, we have seen a V-shaped recovery in the real estate sector. It was enforced with September results as we started to see the same level of [recovery in] both transaction volume and values,” DLD stated.

September statistics of 3,849 deals shows that an average of 872 properties was sold every seven days in Dubai, with 46 percent in the off-plan section and the remaining 54 percent being ready-built homes, the DLD said.

The value of off-plan transactions in the emirate grew more than 129 percent and the secondary market deals increased 23.5 percent from August. Off-plan property deals in September witnessed an increment of 155.7 percent month-on-month, while those of finished homes only show a 74.2 percent raise.

Even though the transaction volumes have picked up, prices have continued to fall. Apartment and villa prices were both 10 percent lower in the third quarter than in the same period in 2019, consultancy Asteco said in its quarterly UAE Real Estate report last week.