Sales Up, Prices Down In UAE
It’s a mixed bag of results for Q3 2020 in the United Arab Emirates’ property market. Despite a clear quarterly rise in property sales during Q3, Dubai’s real estate market is expected to face further challenges in both the rental and sales market, according to the latest Observer: Dubai Residential Report Q3 2020 from Chestertons. Increased sales activity in Q3 rose by 50% Quarter-on-Quarter (Q-on-Q) due to pent up demand from Q2, with developer promotions offered to clear built, but unsold, inventory. The total transaction volume was down 21.7% from Q3 2019. Chris Hobden, Head of Strategic Consultancy, Chestertons MENA, warned: “The ongoing economic impact of COVID-19, and a likely reduction in the emirate's population, both key drivers of Dubai residential prices, are set to hamper market performance.” In the sales market, average apartment prices fell by 3.4% from Q2 2020, and 11.4% year-on-year (yoy). The largest price declines were witnessed in Dubai Sports City, with average prices falling by 5.5% Q-on-Q to 621 Dirhams per sqft ($170). Dubai Silicon Oasis was the only other location to see a quarterly fall in average prices above 5%, reaching 540 Dirhams per sqft, representing a 5.3% drop. On an annual basis, villa sales prices fell by 5.8%. Palm Jumeriah was the only location to witness a price increase, up by 2.2% from 1,820 Dirhams per sqft to1,860 Dirhams per sqft. The Meadows/The Springs saw the highest quarterly decline at 2.5%, with average prices reaching 795 Dirhams per sqft from 815 Dirhams per sqft in Q2. In Dubai’s rental market, apartment rates declined by 3.6% in Q3, with all areas once again showing falls in average rental rates. International City and Discovery Gardens witnessed the sharpest quarterly rental declines of 5.8% and 5.5%, respectively. Villa rents proved more resilient, falling by just 1.2% and 5.6% on a quarterly and annual basis. In terms of transactions, completed property sales totaled 4,587 units in Q3, compared to 1,902 over the second quarter. Off-plan sales totaled 3,262 units over Q3 a decrease from the 5,943 units sold over Q3 2019.
Tags : INTERNATIONAL residential Sales Property rental market Emirates Chestertons Dubai UAE