In June 2020, the overall monthly index recorded 1.113 and an index value of AED 1,066,791. This is a decrease of 0.09% since the beginning of the year and a decrease of 0.7% month-on-month. However, if we look at the quarterly index and compare Q1 and Q2, the index number has increased by 0.8% from 1.144 to 1.153 with an index value of AED 1,072,450.
In June 2020, the monthly apartment index recorded 1.179 and an index value of AED 1,018,974. However, if we look at the quarterly index and compare Q1 and Q2, the index number has increased by +0.58% from 1.206 to 1.213, with an index value of AED 1,026,424.
In June 2020, the monthly villas/townhouses index recorded 1.040 and an index value of AED 1,628,315. This is a decrease of 1.79% since the beginning of the year and a decrease of 1.89% month-on-month. However, if we look at the quarterly index and compare Q1 and Q2, the index number has not changed at all and has stayed at 0.991, with an index value of AED 1,636,095.
HE Sultan Butti bin Mejren, Director General of DLD, commented: “This data that inspires hope in the hearts of the various parties confirms the facts that everyone has agreed on, most prominently the well-established rules on which the Dubai real estate market is based upon, which was consolidated by the strong infrastructure and transparent legislation that ensured the enhancement of confidence among investors across all levels. We expect the market to grow in H2 2020 following the outbreak of the pandemic and for preparations made by the emirate for various activities to return to normal, making certain to apply precautionary measures that would depend on the public’s awareness. According to the same report, Mo’asher constitutes an important step that helps Dubai achieve further progress in this aspect, given the adoption of a single index that can be widely used by all market participants.”
Bin Mejren added: “On the other hand, Dubai’s movement up the ranks in JLL’s Global Real Estate Transparency Index 2020 from 40th to 36th is expected to contribute to an increase in foreign direct investment and enhanced sector transparency. Dubai continues to make progress in its surroundings, while continuing to improve the availability of market data to reach the highest ranks and enter global competitiveness in the field of real estate transparency.”
Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector at DLD, said: “JLL’s Global Real Estate Transparency Index 2020 highlighted the prestigious position held by Dubai, ranking first in the MENA region as the most transparent real estate market. This had a significant impact on the growth of the volume of foreign direct investment as the real estate sector acquired a large share of it, which prompts us to coordinate with all concerned parties to meet the aspirations of real estate investors in accordance with the best international standards and practices to preserve Dubai’s image and its internationally prestigious reputation. On the other hand, we have taken note of the diversification of offers to suit different segments and the provision of flexible payment plans to attract the most likely buyers. Moreover, we continue to coordinate with the Higher Committee for Real Estate Planning to understand the market situation and the needs and expectations of the various parties.”
Michael Lahyani, CEO and Founder of Property Finder, commented: “Dubai continues to strengthen its position as the most transparent real estate market in MENA. Mo’asher constitutes a potentially important step forward for Dubai as it results in the establishment of a single index that is widely used by all market participants. It is Property Finder and Dubai Land Department’s shared vision to provide enhanced data transparency to the real estate market that led to this success. The three-point increase in the JLL Transparency index shows the value Mo’ asher has for the UAE market and how it will ultimately increase foreign direct investment. This is a proud moment for Property Finder as we have created and worked on something that has had a direct impact and will have a long-lasting positive impact on the Dubai Real Estate Market.”
The most important results
These results were achieved despite the fact Dubai was on full lockdown in April, partially in May, and didn’t start opening up fully until June. Hence, the entire Q2 was affected by COVID-19. When it comes to real estate sales transactions, Dubai saw 5,605 sales transactions in Q2 2020 worth AED 11.05 billion. The secondary market saw 40% of the transactions in Q2, while off-plan accounted for 60% of the transactions. In June, the volume of sales transactions was 2,361 worth AED 4.9 billion and the secondary market, for the first time since the lockdown began, had higher sales transactions than off-plan transactions at the end of Q2.
In conclusion, the data revealed by Mo’asher show the start of the market’s recovery in Q2 2020, and is expected to continue in Q3, albeit at a relatively slow pace at this time of the year. The government initiatives and the stimulus packages they contained remain the primary motive for achieving further recovery and helping the market to continue this trend.
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About Dubai Land Department:
Dubai Land Department (DLD) was founded in January 1960 to establish the most prominent real estate sector in the Middle East and the world. It provides outstanding and integrated services to all its customers while developing the necessary legislation to propel the real estate sector in Dubai through the regulation of the sector, organising and promoting real estate investments, and spreading industry knowledge in search of regional and worldwide real estate innovation.
DLD seeks regional and worldwide innovation in real estate with the aid of its active sectors that include real estate registration services, real estate investment promotions, and corporate support, and with the aid of its active organisations that include the Real Estate Regulatory Agency, the Dubai Real Estate Institute, and the Rental Dispute Centre.
Unified Toll Free Number:
In order for Dubai Land Department to provide the best possible service in a rapid manner and to ensure the comfort and happiness of our customers, it has activated a new toll-free call centre number . This can be used for all Dubai Land Department and Rental Disputes Centre enquiries.
© Press Release 2020