Dubai records 2,457 real estate transactions in Aug 2020
There was a 11.3% surge in real estate transactions in August 2020, as compared to the same month last year
The Dubai real estate market, recorded 2,457 sales transactions in August 2020 worth $1.3bn (AED4.7bn), performing better than July this year by 2.2%, a latest report by Data Finder, the real estate insights and data platform under Property Finder Group revealed.
According to the report, there was a 11.3% surge in real estate transactions in August 2020, as compared to the same month last year.
Of the total transactions, 31.6% were off-plan, whilst 68.4% were for the secondary market. There were 1,189 mortgage transactions in August 2020 worth $2.8bn (AED10.4bn).
Commenting on the market performance, director of research and data at Property Finder, Lynnette Abad, said: “In previous years, the summer months were typically slower for real estate transactions in Dubai because of the summer holidays. This year, due to the COVID-19 situation, many residents chose not to travel. This, coupled with pent up demand and attractive pricing drove transactions higher.”
Abad added: “If we only look at secondary market transactions, August 2020 had 22.4% more transactions than August 2019 which coincides in what we saw in our search and demand data during the crisis.”
Town Square, Jumeirah Village Circle, Dubai Marina, International City, and Business Bay were among the top areas for overall sales transactions in Dubai during August 2020.
Meanwhile, in terms of off-plan transactions, the top areas were Jumeirah Village Circle, Business Bay, Palm Jumeirah, Arjan, and International City.
Additionally, the top areas for secondary sales transactions in Dubai were Town Square, Dubai Marina, Dubai Land, Downtown Dubai, and Dubai Sports City.
According to Data Finder, another trend in the real estate market in Dubai has been the change in demand from smaller units to larger units. Since the beginning of the pandemic, the ratio of sales transactions for one-bedroom units has fallen by over 10%, and for studios by more than 34%.
Meanwhile, the ratio of transactions for three-, four-, and five-bedroom units has increased by 9%, 20%, and 15% respectively.
“Since the crisis began, we saw the search demand for larger units and number of bedrooms increase significantly and the sales transactions we are seeing today further validate this data,” explained Abad.
According to Abad, the top searched rental keywords in the month of August were ‘new units’ and ‘chiller free’.
“This shows us a trend of what the average person is looking for, which are brand new units due to the large amount of completed supply, and chiller free units to save on extra costs,” Abad said.