Property prices in Dubai ease out in H1 2020

Property prices in the emirate of Dubai have eased out in H1 2020, as conditions become favourable for buyers and renters amidst the waning Covid-19 crisis, a new report has revealed.

Despite pressing times, property prices for sale and rent in Dubai’s popular neighbourhoods have remained stable in the first six months of 2020, experiencing minor declines recorded under 4 per cent compared to the year-earlier period, Bayut and dubizzle’s H1 2020 Market Report revealed.

Prospective buyers on both platforms remain keen for established areas with family-friendly amenities such as Dubai Marina, Downtown Dubai, Arabian Ranches and Palm Jumeirah.

Meanwhile, tenants continue to lean towards integrated communities such as Jumeirah Village Circle, Dubai Marina, Mirdif and Jumeirah on both Bayut and dubizzle platforms.

According to Dubai Land Department’s data, 15,897 sales transactions were recorded in Dubai between January to June 2020, amounting to a total value of Dhs32.5bn.

Properties for sale in Dubai
In the first half of 2020, demand increased for established family-friendly neighbourhoods across the emirate.

Arabian Ranches held the top spot among buyers and investors interested in ready villas, followed by Palm Jumeirah and The Villa. The average price-per-square-foot in Arabian Ranches has seen a miniscule increase of 1.6 per cent in the first six months of 2020, from Dhs882 to Dhs896, owing to increased demand for safe, gated communities.

Meanwhile, the sales price-per-square-foot for villas in Palm Jumeirah remained largely unchanged, averaging at Dhs2,027, while it abated marginally in The Villa from Dhs669 to Dhs648 in H1 2020.

Newer developments such as Dubai Hills Estate, Dubailand, DAMAC Hills (Akoya by DAMAC) and Akoya Oxygen have also appealed to buyers interested in villas in H1 2020.

Meanwhile, Dubai Marina has continued to dominate the interest of buyers and renters for ready apartments for sale.

The return on investment in International City has continued to be high in H1 2020 averaging at 9 per cent for ready apartments.

Dubai’s off-plan market has also continued to offer buyers with opportunities to invest in well-integrated developments at different price points. As per Bayut’s data, Akoya Oxygen and Dubailand have drawn the most attention from prospective investors interested in off-plan properties, in the first half of 2020.

Properties for rent in Dubai
Mirdif has remained the most popular neighbourhood for rental villas in Dubai in the first half of 2020, according to consumer interest on Bayut and dubizzle.

The average rental cost for 3-bedroom villas in Mirdif went down marginally by 4 per cent from Dhs99k in H2 2019 to Dhs95k in H1 2020.

The cost to rent four- and five-bedroom villas in the community remained stable in H1 2020, averaging Dhs115,000 and Dhs123,500 respectively.

Established communities such as Jumeirah, The Springs and Arabian Ranches have seen rental costs remain largely unchanged throughout H1 2020.

For rental apartments in Dubai, Jumeirah Village Circle (JVC) has continued to be the area of choice with annual asking rents having dipped slightly, averaging Dhs34,000 for studio apartments, Dhs50,000 for one-bedroom flats and Dhs72,000 for two-bedroom apartments.

Dubai Marina has ranked second for rental apartments in Dubai, experiencing minor declines between 2-3 per cent for average costs in H1 2020.

Haider Ali Khan, CEO of Bayut and dubizzle, said: “Over the past few months, the world has gone through a particularly challenging period, grappling with the effects of a global health emergency. In the UAE, we’ve seen both the people and the government rise to the occasion, take responsibility and change their lifestyles while working and learning from home. At the same time, 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.”