We are a trusted team of Audit and Valuation professionals, operating in the Middle East. Analysts believe that the economy will rebound in 2021 as there is the 50-year anniversary of the UAE and we will also see the Dubai Expo. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. Although off-plan transactions stayed relatively stable and only declined by 2%, it is the secondary market transactions that performed really well in the third quarter and increased by 141% when compared to the previous quarter. Established in 1977, Reliant Surveyors are a Loss Adjusting and Valuation Company. In this article, we review how the market has behaved in previous years, present data and statistics, and share what we expect for 2021. Learn how Asian countries compare on foreign property ownership rules, taxes, visa options, capital controls and more. What are your preferences and goals? Some claim that the decline of just -0.9% in the third quarter shows signs of improvement in the market. face a tough time throughout 2021 and 2022, Dubai’s Property Market in Previous Years, Dubai’s Property Market in 2020 / The COVID-19 Pandemic. I accept that this form collects my name, email and other information that may be forwarded to a real estate agency or other relevant agency (read our. While the Indian Rupee has remained fairly stable to the Dirham, the Pakistani Rupee has lost around -50% of its value to the Dirham from early 2018 to early 2020. According to a poll made by Reuters, the real estate market will continue to decline until 2022. Although Dubai’s real estate market has developed a positive outlook ahead of the Expo 2020, the onset of coronavirus has slowed down its growth. • The total residential real estate transactions increased by 50% in the third quarter of 2020 when compared to the previous quarter. Dubai’s housing market remains “oversupplied” despite the drop in prices over the last few years, a new report by investment firm UBS Global Wealth Management has found. UAE’s economy and its real estate markets have suffered from a drop in oil prices, particularly in 2020 when prices turned negative. It’s definitely not a place for investors unless living in it. In 2017, the number of transactions during the same period was 52,170 with a total value of AED 204 billion. In October, we saw record-high sales volumes due to decreasing prices, which made property more attractive to local and foreign investors. It was really complete and realistic analytics on Dubai real estate market, which cover all essential parameters. In 2019, the UAE government announced a 10-year residency visa for investors, as well as offering 100% foreign ownership of UAE-based companies. 2019 had been an interesting year for the Dubai real estate market, which saw an increase in real estate transactions, worth a staggering AED 81.03B, as per data from the Dubai Land Department. • The apartments sales and rental prices have continued to soften in the third quarter of 2020. Some even allow buyers to pay 60% of the purchase price after completion. But the real estate market will most likely remain weak. According to ValuStrat, apartment prices fell by as much as -14.9% in Downtown Dubai in November, year-on-year. Nick Grassick. Prices are now down 30% over the past five years and where the chronic oversupply is much to blame for. The softening of the Dubai real estate market has prompted buyers and investors to rethink investing strategies. • Villa transactions increased by over 123% in the third quarter in terms of volume and around 91% in value due to high availability and lowered prices, villas are becoming more popular for both aspiring homeowners and investors alike. Dubai Real Estate Market Report Q3 2020 The UAE economy started showing signs of recovery at the beginning of the third quarter of 2020. However, since July 2020, the Dirham lost around -10% to the RMB, for example. Dubai will most likely see modest price declines throughout 2021 and with the market bottoming out. We created it for investors to discuss and raise questions like yours: https://www.facebook.com/groups/asiapropertyhq. Worth mentioning is that Dubai’s economy is extremely vulnerable to external factors and the global economy as a whole, including the ongoing trade war between the US and China. Explore, find and gauge the market health using the latest home price trends and indices for sale and rental properties in UAE using Bayut.com’s exclusive home value indices. This may increase business activity and the demand for property in the coming years. When it comes to locations, the three most popular areas in the first six months of 2018 were: During the first eight months of 2019, the most popular areas were: The latest news for the office sector are not promising either as the vacancy rates increased by 10% in the second and third quarter of 2018. I have already lost £50,000 on its value and am wondering whether to simply cut my losses or hold on in the hope that the market has an upturn. Property is still considered fairly expensive, a reason why we see a correction in the market. While the economy contracted by around -6% in 2020, rents decreased by around -6.9% in the third quarter of 2020. It shows all the data including project delivery, property launch, overdue projects, future supply, delivered units, … Click here to get in touch with an experienced agent. We use cookies to ensure that we give you the best experience on our website. Read hundreds of articles and expert interviews covering Asia property taxes, foreign ownership rules, projects & much more. I’d advice you to ask this question in our Facebook group. Thanks. Save my name, email, and website in this browser for the next time I comment. Jumeirah Village Circle with 1,323 transactions, Dubai Creek Harbour with 1,214 transactions, In Q2 2018, there was a -5.5% decline in sales price for apartments and a 6.8% decline for villas, compared to 2017, In Q2 2018, there was a -7.9% decline in rents for apartments and an 11.2% decline for villas, In Q3 2018, there was a -7% decline in sales prices for apartments and an 8% decline for villas, In Q3 2018, there was a -10% decline in rents for apartments and a 9% decline for villas, Apartment prices fell by -16.5% when comparing Q3 2018 with Q3 2019, Villa/townhouse prices declined by -15% in the third quarter of 2019. Many Buildings built half way and abandoned including offplan units not materialized. Indians and Pakistanis were the second and fourth biggest investors in Dubai respectively during the first nine months of 2018. Prices and rents didn’t fall as much these years compared to the previous years. In Dubai, the market has witnessed a shift in demand for larger homes and more private spaces. The quarterly decline of apartment sales prices has been 2.6% while for rentals it has been 4.5%. The second highest number of property sales transactions registered in Dubai since 2008 was in 2017 (40,649). The Dubai real estate market has, therefore, grown by 260 per cent in the past 11 years in terms of the volume of transactions. Over the course of 2020, the trend of consolidation and a flight to quality is likely to continue across the UAE, driven by softer market conditions and regulatory changes, such as the 100% foreign ownership law and dual licencing. • The sales prices of the villa segment have not been affected as much due to increased demand, in fact there has been an uptick of 0.1% in the prices when compared to the previous quarter. Read our Dubai real estate market overview for Q1 2019 to find out more. Our off-plan specialist Nima Safa writes about the most important trends he has noticed in Dubai’s real estate sector. This positive, upward momentum is expected to carry forward into the Dubai real estate market in 2020, creating many exciting opportunities for buyers and investors. Compare 23,215 properties listed for sale in Dubai on the most popular real estate portal in the United Arab Emirates. The estate agents have so far not provided me with the best advice . Take a look at the Dubai real estate market’s yearly overview. Office. While some believe that the market has already bottomed out as we’ve seen major price decreases since 2014, major players like Damar aren’t that certain. If you continue to use this site we will assume that you are happy with it. In 2018, S&P Global Ratings informed that real estate prices will … Officials have ruled out any possible slowdown in Dubai’s real estate market because of the, now, more flexible laws and regulations of property ownership in Dubai. It’s been popular among overseas investors and the real estate market grew remarkably throughout the 2000s. After the mortgage cap was introduced in 2013, we saw an immediate decline in prices. The Dubai government opened up the city to tourists and flights started coming in since the first week of July. While occupancy rates across Dubai's hotels remained relatively stable at 85% in the year-to- February 2019, average daily room rates and revenue per available room continued to decrease on the back of increased supply. As the Dirham is pegged to the US dollar, we’ve only seen minor fluctuations between the two. That’s a steep discount from Tel Aviv, where the price per square meter is $17,149. 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