Weaker dollar pushes Dubai property sales to surge amid Covid-19
Value of real estate transactions in the Dubai residential market stood at slightly less than $2.7bn in Q2 2020
The weak performance of the US dollar in the past four months has led property sales in Dubai to increase, with more interest coming from international investors, according to Devmark, a UAE-based real-estate consultancy and advisory firm.
During the start of the pandemic, the dollar saw an incremental rise in value due to its position as a safe haven, however, with the immediate uncertainty of the pandemic reducing, there have been positive flows to other currencies such as the Swiss franc, sterling and the euro, with negative outflows from the dollar.
Commenting on the scenario, CEO of Devmark, Sean McCauley, said: “Since mid-March, investors from Switzerland, the UK, Germany, and Italy have been able to take advantage of gains made by the Swiss franc, sterling and the euro, as the US dollar weakened over the past four months”
McCauley added that the price of development projects in Dubai has dropped 14.8% and 11.2% based on whether it is being bought in euros or sterling.
"Indeed, UK investors, for example, buying in pounds could now save over $50,364.8 (AED185,000) when buying a one-bedroom luxury apartment, at the Address Jumeirah Resort, once compared with the exchange rates at the beginning of March,” added McCauley.
According to Dubai-based real estate data and analytics company REIDIN, the total value of real estate transactions in the Dubai residential market stood at slightly less than $2.7bn (AED10bn) in Q2 2020, despite the impact of the pandemic.
This, although was 40% down y-on-y, the volume of transactions was marginally up in May and June 2020.
Meanwhile, Dubai Marina recorded the most transactions in Dubai by volume with 146 sales in Q2, closely followed by Dubai Hills, with 120, due to the demand and popularity of waterfront developments. The Address Jumeirah, Marina Gate, and Sparkle Towers, located in close proximity to Dubai Marina, generated combined sales of 122 units in the first six months of 2020 soaring from 53 transactions in Q1 2020.
Commenting on the popularity of waterfront properties, Miki Mirza, executive director at Devmark, said: “Marina living has become one of the most desirable and sought-after lifestyles in the world, with exclusivity, status, leisure and entertainment, can be found in abundance at the meticulously planned Dubai Marina waterfront development."