Dubai registers 2.2% increase in real estate transactions in August

Dubai recorded a total of 2,480 sales transactions worth Dhs4.72bn, recording a 2.2 per cent month-on-month increase.

Of the transactions recorded in August, 31.5 per cent were observed in the off-plan segment and 68.5 per cent in the secondary segment, Dubai’s official sales price index, Mo’asher, launched by Dubai Land Department and Property Finder, revealed.

The August transactions increased the year-to-date total to 20,614 sales transactions worth Dhs41.65bn.

In terms of value, the worth of real estate transaction rose 60 per cent in August 2020 compared to August 2019

The base year for Mo’asher is 2012 and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.

Historically, a slow month for Dubai’s real estate space, this year, August defied odds and outperformed the month of July. The number of real estate transactions in August also grew year-on-year, increasing 16.7 per cent from a year-earlier period, as well as recording a 60 per cent spike in transaction value.

Another notable trend was the shift in demand from smaller to larger units. Since the start of the pandemic, the ratio of sales transactions for 1 bedroom units fell by over 10 per cent and by over 34 per cent for studios. The ratio of transactions for 3-, 4- and 5-bedrooms, however, increased by 9 per cent, 20 per cent and 15 per cent respectively.

Furthermore, Property Finder search trends revealed ‘new units’ and ‘chiller free’ as the top searched rental keywords in August. The top searched sales keywords entailed ‘furnished’, ‘upgraded’ and ‘payment plan’.

The director general of Dubai Land Department said last month that the Dubai market is expected to pick up grow in the second half of 2020.

Read: Dubai property market expected to pick up in H2 – Land Department chief