Dubai’s real estate sector has witnessed the completion of around 14000 residential units during the first six months of this year, despite Covid-19 crisis, the media reported.
This is about 30 percent of the units that are scheduled to be handed over in 2020.
According to ValuStrat Price Index (VPI) report, second-quarter residential home sales transactions accounted to 4,459 units, down 48.8 percent quarter-on-quarter and 39.3 percent year-on-year with a value of Dh7 billion and an average ticket size of Dh1.57 million.
Shaher Mousli, chairman of Arthur Mackenzy Properties Group told the media, “While there is a 50 percent decrease in total number of transactions during second quarter of 2020, however the occupancy rate for rentals has gone up to 84 percent, which is in turn supplementary to the sales and purchase market and a very positive sign for the recovery of the industry by fourth quarter of this year.”
“Rental RoI is lower than what it used to be. but the same is reflected in sales prices which have corrected to justify that RoI paving the path to a healthy eight per cent to nine per cent return. All this coupled with the positive geopolitical movements being taken by our wise leadership, will help review the markets to their finest state.”
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.