The real estate sector in Dubai recorded the best first-quarter performance in the last six years, despite the coronavirus pandemic, according to ValuStrat’s May 2020 report.
The first quarter of this year saw cash sales of ready homes up 30.4 percent annually with no change quarterly.
The report on the Dubai real estate sector further revealed that April cash sales transaction volume performance was just half of what was reported for March. Ready homes sales volume witnessed a steep monthly fall of 75 percent, off-plan homes sales declined 32 percent when compared to March.
Developers such as Emaar, Dubai Properties, Dubai Holding, and Danube were among the best sellers during the first quarter.
The top locations were the real estate deals were completed include Dubai Creek Harbour, Jumeirah Village, Umm Suqeim Third, and Jumeirah Beach Residence, and most transacted ready homes were in Palm Jumeirah, Dubai Marina, Town Square, Arabian Ranches and Downtown Dubai.
ValuStrat said in its report, “The average asking price for ready apartments stood at Dh1,178 per sq ft displaying a decline of 2.5 percent quarterly, and 5.9 percent lower than in the same period last year. For ready villas, the average asking price was Dh876 per sq ft indicating prices declined 1.6 percent quarterly and 12.1 percent annually.”
The residential real estate market in Dubai felt by 8.8 percent year-on-year in 2019, according to data released by the Dubai Land Department (DLD).
Rents in Dubai also declined during the same period. Rents were down by 7.2 percent in 2019.
However, rental yields remained unchanged at 6.4 percent.