What a year it was for Dubai land. While we have seen trade and buyer movements, we are currently in very fascinating circumstances amid the recession and the roller coaster trip.
In prime locations, where production is low, costs are now stabilizing and rates are still increasing in some instances. In these places, we are also beginning to see some deals for homes.
Back at the beginning of the year, the real estate market in Dubai rose month-by-month, followed by a similar pattern from the year H2, 2019, between January and February 2020.
The excitement for Expo 2020 during these two months was already high and this has been seen in the number of transactions. This pattern, of course, came before Covid-19’s fears, which began to escalate in March.
Individual buyers found this time a means of investing in a city that will be the greatest exhibition on earth, Expo 2020, and the immense surplus supplies already available on the market in the previous year have backed this desire.
More generally, Dubai’s property transactions rose 9.74% relative to the same duration during the first quarter of 2019. In fact, since Q1 2020, the number of transactions has been the highest since the first half of 2017.
But as in March, the pandemic came to the fore, it was apparent that transactions were slowing down. We did it better than anyone in this difficult moment because of the constructive strategies of the UAE government and the quick and creative efforts. The authorities’ creative efforts helped the immobilization industry re-enter the market.
In April, partly in May, Dubai was in absolute lockout but only opened fully before June. Covid-19 was thus influenced in the second quarter. Dubai has seen a total of DHS 10.86 billion in revenue of 5,552, relative to the same time last year in Q2 2020, down 38.7 percent (9,062) and down 42 percent (DHS 18.78 billion).
As the normal sales period for properties takes 45-60 days, we found the greatest lockdown effect on sales in the second half of May, and at the end of the month, volumes dropped to their minimum rate. Although 40% of Q2 transactions were registered on the secondary market, 60% of transactions occurred outside of time.