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Thu 16 Jul 2020 11:38 AM

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Despite pandemic, property prices in Dubai see only marginal decline in H1

Bayut statistics suggest that many people are re-evaluating their housing options in favour of villas in light of the Covid-19 pandemic and subsequent lockdowns

Despite pandemic, property prices in Dubai see only marginal decline in H1

Property prices for sale and rent in Dubai’s most popular neighbourhoods remained fairly stable in H1 2020, according to new statistics from Dubizzle and Bayut.

According to the statistics, prices only fell 4 percent overall when compared to H1 2019.

The statistics also show that prospective buyers on both platforms remain interested in established, family-friendly areas including Dubai Marina, Downtown Dubai, Arabian Ranches and the Palm Jumeirah.

Tenants, on the other hand, have continued to direct the bulk of their attention to Jumeirah Village Circle, Dubai Marina, Mirdif and Jumeirah.

Dubai Land Department data shows that 15,897 sales transactions worth AED 32.5 billion were recorded between January and June.

Sale Properties

The statistics show that for buyers and investors seeking ready villas, Arabian Ranches claied the top spot, followed by Palm Jumeirah and The Villa. In Arabian Ranches, price-per-square foot saw a minor increase of 1.6 percent, while they remained stable on the Palm.

Newer developments such as Dubai Hills Estate, Dubailand, Damac Hills and Akoya Oxygen also appealed to buyers interested in villas in H1 2020.

For ready apartments, Dubai Marina continued to dominate the interest of buyers and renters in H1, with the average price-per-square foot falling only 2.2 percent from AED 1,271 to AED 1,243.

Other popular areas, including Downtown Dubai, Jumeirah Beach Residence and the Palm saw prices-per-square foot remained largely stable, while JVC, JLT, Business Bay and International City all saw declines of less than 6.5 percent.

Properties for Rent

For rental villas, Mirdif remained the most popular area, with an average rental cost for 3-bedroom villas declining 4 percent from AED 99,000 to AED 95,000 in H1. Other, more established communities – such as Jumeirah, The Springs and Arabian Ranches – have seen prices remain largely unchanged.

For rental apartments, on the other, Jumeirah Village Circle continued to garner the most attention, with annua asking rents experiencing mild declines in H1 2020, averaging approximately AED 34,000.

Dubai Marina has ranked second for rental apartments in Dubai, experiencing minor declines between 2 percent to percent for average costs in H1 2020.

“Dubai’s property sector has also adapted and stayed resilient during the pandemic, with the brokerage community turning to innovative virtual tools to facilitate real estate activity and stay connected with prospective buyers and tenants,” said Haider Ali Khan, CEO of Bayut and Dubizzle. “The combined traffic to Bayut and Dubizzle during the months of May and June were as high as 6.9 million and 7.3 million sessions respectively, pointing to growing interest in the real estate sector post the lockdown and trust for the advanced virtual property solutions provided by our platforms,” he added.

Ali Khan added that Bayut has seen a 42 percent increase in traffic for villas in March, followed by another 25 percent in April amid the Covid-19 lockdown restrictions.

“It’s easy to understand the appeal of such private homes in light of the heightened need for living arrangements with safe accessible outdoor spaces, irrespective of any lockdown. Overall traffic has also almost doubled since March 2020 with more and more people re-evaluating their housing choices,” he added.

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