International Finance
Feature Real Estate

Dubai’s real estate transactions increase by 2.2% in August

Dubai real estate_IFM_Image
During the period, Dubai recorded a total of 2,480 sales transactions

Dubai’s real estate transactions increased by 2.2 percent month-on-month in August, media reports said. During the period, Dubai recorded a total of 2,480 sales transactions.

Dubai’s official sales price index, Mo’asher, which was jointly launched by Dubai Land Department and Property Finder, revealed that  31.5 percent of the real estate transactions in August were observed in the off-plan segment while around 68.5 percent were observed in the secondary segment.

The number of real estate transactions in August also grew year-on-year, increasing 16.7 percent from a year-earlier period, as well as recording a 60 percent increase in transaction value.

Recently, global rating agency S&P revealed that oversupply in the Dubai real estate market will impact the property market significantly.

Sapna Jagtiani, director for corporate ratings, said during a virtual conference, “Even before the pandemic, we had lingering oversupply in the real estate sector in preparation for the Expo 2020. Now, developers are under significant pressure because residential prices are lower by 11 – 12 percent and more owners have to roll out rent relief measures. This will continue to impact their top line for a while.”

“We are seeing lot of rental pressure in commercial space. Occupancy rates will come down and vacancy rates will go up. But it might take a while. It’s not easy to shut down offices unless the businesses are going bust. It will take a few quarters before costs are rationalised by companies and they make big decisions such as working from home and letting go of spaces,” Jagtiani added.

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.