The summer months in Dubai in 2020 are seeing a significant rise in real estate sale transactions compared to previous years.
For the real estate market in the UAE, normally it is expected to find lower sale transactions in the region during the summer months. This is due to the summer holidays in which expats choose to travel.
This year has seen all normality transformed, and for real estate it is a positive change. Residents stayed in Dubai looking for various ways to upgrade their homes, both in terms of comfort and prices. This high demand coupled with affordable prices directly resulted in a peak in sales in August.
In total, according to Dubai’s official house price index, August 2020 has seen 2,480 sale transactions amounting to AED 4.72 billion. Breaking things down, 31.5% were for off-plan properties, while 68.5% were of the secondary market. In comparison to August of last year, the impressive amount is exactly 13.4% higher.
Furthermore, there are some popular areas in Dubai that have experienced stable prices in August, despite their prices rising a bit. These are communities in Dubai that have huge demand from residents, yet limited supply to accommodate it.
Interest in spacious properties is continuously rising from month to month. Since March, 3-, 4-, and 5-bedroom properties saw an increase in their ratio transactions by 9%, 20%, and 15%, respectively.
Dubai’s overall real estate index declined in August 2020 by 0.27% since July reaching 1.105, priced at AED 1,051,163. For apartments, the index is at 1.168, priced at AED 1,002,771, a decrease of 0.26% since July. However, for both, the indexes remain higher than what they were last February.
Lastly, for villas/townhouses, the price index is at 1.012, equal to AED 1,617,983, which is a decrease of 1.08% since July.
For the full report, click here.
