Dubai real estate on V-shaped recovery; Industry Experts

Reports suggest that sales transactions on the property market in Dubai are experiencing a V-shaped recovery with ready-to-move-in homes taking the lead.

Sales in August saw ready-made homes leading total home purchases, representing one-third of the off-plan transactions. Ready-made home transactions rose 18.7 percent in August compared to the previous month, creating a V-shaped recovery trend. While Compared to last August, the transactions increased by 46.2 percent.

Real Estate advisor and consultant ValuStrat said, “However, due to reduced project launches by developers, August’s off-plan home sales declined 25.2 percent when compared to July. Properties developed by Emaar, Nshama, Dubai Properties and Nakheel topped the sales charts overall. Top off-plan locations transacted during August were in Jumeirah Village, Arjan, International City and Dubai Hills Estate. Most transacted ready homes were Town Square, Dubai Marina, Jumeirah Village and International City.”

Dubai property prices fell 1.6 percent in August. This is an increase of 0.3 percent over the April-June movement control period. Annually, residential capital values fell 13.8 percent.
Global Property Management and Consultancy Colliers International said new community developments since 2016 have been aimed at affordable customers, and these communities have built a large proportion of townhouse-style properties with reduced plot size including more rooms in a smaller size.

Mansoor Ahmed, director for health, education, infrastructure and PPP, Colliers International said, “They also cut back on lakes, large parks and have reduced the sizes of communal swimming pools and play areas”.

Also, he added, “The latest developments, Maple, Sidra, Arabella amongst others, have further reduced the communal spaces including the areas around the communal pools and reduced the width of paths. Conversely, they have also created smaller ‘pocket’ spaces within the community”.