Some positive indicators appeared in the real estate market in Dubai during the first quarter of the current year 2020, as sales volume increased and the pace of decline in the value of real estate slowed down in all areas of the emirate. p>
According to Emirates News Agency, the first quarter witnessed the launch of 4,458 new housing units in various freehold areas, compared to 6,328 housing units for the same period in 2019, with a clear decline of 30 percent and a larger decrease when compared to the first quarter of 2018, which saw the launch of more than 12,000 New housing unit.
Chris Hopden, Head of Strategic Consultancy at Chestertns Middle East and North Africa, explained that the residential real estate sector in Dubai witnessed a clear flexibility with the beginning of 2020, in conjunction with the annual increase in the volume of sales that contribute to creating a state of optimism among buyers.
He added that while we have witnessed a continued decline in the value of real estate in this quarter in a way that touches the quarterly and annual decline, the decrease in the number of new housing units launched in this quarter is a positive step, especially since the increase in supply over many years contributed to the decrease in the value of real estate, stressing that the committee’s efforts Olaya real estate planning in Dubai contributed to creating a state of stability in the market with the beginning of 2020 by reducing the number of new housing units, which is undoubtedly a positive step.
Hopden pointed out that the preventive measures applied in the face of the outbreak of the new Corona virus began to significantly affect the rental market in the second half of March, with the authorities in Dubai announcing the suspension of evictions at the residential and commercial sectors throughout the months of March and April, indicating that these variables It pushed real estate owners to be more flexible with tenants regarding payments and payments as well as a number of key owners launched initiatives and packages aimed at helping tenants in these difficult circumstances including giving them free short-term lease periods.
On the level of real estate behaviors as a whole, the report indicated that the number of residential real estate transactions reached 9,591 during the first quarter of this year, with an annual increase of 13 percent, supported by an increase of 20 percent in the transfers of ownership of existing real estate .. While Dubai Marina witnessed the highest rate in Dubai The volume of real estate transactions for completed units is 375 transactions, followed immediately by Jumeirah Village Circle with 315 transactions during the first quarter of 2020.
