Dubai's prime areas such as Downtown, Dubai Hills and The Palm are leading the recovery in the emirate's property market, rising up to 30 per cent in some vicinities, with the middle segment pegged to follow, say property developers and analysts.
The recovery in villa and townhouse segments is going strong, showing a significant rebound that is anywhere between 15 per cent to 30 per cent, says Imran Farooq, CEO of Samana Developers
“The mid segment should follow because now there is a general awareness in the market that the market has started recovering after bottoming out, because of the cheap money and people feeling safer during the pandemic. These are some of the few reasons local real estate market is recovering,” he added.
Taimur Khan, associate partner at Knight Frank, said whilst Dubai’s prime residential market saw prices decrease by 4.2 per cent in the year to December 2020, the market is beginning to see signs of a recovery in price performance in some prime sub-markets.
“For example, in the six months to December 2020, apartment and villa prices on Palm Jumeirah increased by 5.1 per cent and 9.4 per cent, respectively. Over the same period, villa prices in District One have increased by 3.5 per cent. Other prime markets such as Downtown Dubai and Emirates Hills are also showing similar signs of improvement in market performance,” Khan added.
January data on the Property Monitor Dynamic Price Index recorded a monthly increase of 1.1 per cent in January. “Evidence is starting to emerge of popular ‘hot spots’ with the price recovery not uniformly spread across all communities,” it added.
Importantly, real estate transactions had also started to recover from the third quarter of last year following the lifting of restrictions related to the Covid-19 pandemic. In addition, low interest rates are also prompting end-users and investors to buy properties at a very high attractive level.
Speaking after the inauguration of Samana Greens project, Farooq noted that currently this recovery is without much rental correction in the apartment segment but villas have shown an upward trend in rental recovery.
“The apartment sector might follow. Once the apartment segment starts following the upward rental trend, the mid segment will also start recovering,” Farooq said.
The Dh75 million Saman Greens residential project in Arjan was inaugurated by Marwan bin Ghalita, CEO of Dubai’s Real Estate Regulatory Authority, along with other top officials. It houses 122 units and comprises studios, and one- and two-bedroom apartments, along with six retail spaces at the ground level. The group plans to launch three new residential projects in Dubai in 2021.
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