Dubai’s real estate market is steadily recovering from its lowest levels, with transactions standing at USD 19.8 billion for the whole year, the latest data showed.
According to Dubai’s official sales price index Mo’asher, an initiative by the Dubai Land Department (DLD) and Property Finder, 35,400 transactions worth USD 19.8 billion were recorded in Dubai in 2020.
Dubai's property sector has been headed towards a V-shaped recovery. If you look at the numbers, since the lowest numbers in May, which had 1,452 transactions, the market has recovered by almost 270 percent.
Out of the thousands of property transactions in 2020 more than half (21,044) were for secondary or ready units and 14,356 deals were for off-plan properties.
The market hit its lowest point in April and May of 2020, after the COVID-19 lockdown had been imposed. As soon as Dubai reopened the economy, buying activity picked up and almost got back to normal.
Demand for secondary residential properties was particularly high. Sales peaked in November with 2,179 transactions and in December with 2,579 deals, the highest result in six years and nine months.
According to Property Finder, 'Despite the drawbacks on the market in the lockdown, including restricted movement and market conditions, 2020 as a year performed better than expected in terms of numbers.
'There was a significant rebound in the real estate market after restrictions eased, and people wanted to improve their home lifestyle. With attractive housing prices and the lowest mortgage rates we have ever seen, it was inevitable,' said Lynnette Abad, director of research and data at Property Finder.
The data provided by Property Finder and DLD did not indicate if last year’s total sales exceeded the transactions recorded in 2019.
Other research reports noted that compared to pre-COVID-19 levels the market last year had been still subdued.
Analysts expect further declines in sales prices and rents this year, as the market has yet to bottom out.