Dubai Real Estate Market Overview - 3rd Quarter 2020

 

 

Acceptable performance for The Dubai property market in Q3 2020 featuring over 8,698 transactions with an increase of 56.8% QoQ, and -11.8% vs. Q3 2019 The total value of the sales transactions reached AED 18.3B. This result is driven by the performance of September which has been the best month in Q3 for the last 3 years. Town Square was the hottest area in Dubai for both ready apartments and villas markets in Q3. When it comes to the off-plan, MAF (Tilal Al Gaf) obtained over 20% of the total off-plan sales YTD.

The breakdown of the transactions in Q3 2020 vs. Q3 2019 was as follows:

  • 5,602 (-19.9%) Apartments for AED 6.5B

  • 1,315 (-14.5%) Villas for AED 2.7B

  • 303 (-7%)  Commercial for AED 433.1M

  • 1,478 (+43.1%) Plots for AED 8.6B

The spike in the plots transactions can be attributed mainly to registering many transactions in Nad Al Sheba a.k.a NAS Villas where they were recorded as plots.

Median Prices

What matters the most is the prices in the ready property market because even if you are going to buy an off-plan property, then chances are that you will sell once it is ready. 

Below you find the median property prices in general in Dubai.

  • Ready apartment at 788K AED  (-10.2% QoQ)

  • Ready villa at AED at 1.7M AED (-7.4% QoQ)

  • Off-plan apartment at AED 915K (-19.1% QoQ)

  • Off-plan villa at AED 1.4M (-6% QoQ)

Sales value proportions

Regarding apartments prices the price range was proportionally as following:

  • 59% within the below AED 1M.

  • 30% in the range of AED 1-2M.

  • 6.4% in the range of AED 3-M.

For villas

  • 79% fall in the range of AED 1-2M.

  • 10% in the range of AED 2-3M.

  • 5.5% in the range of AED 3-M.

Off-plan vs. Ready Transactions

Off-plan villas sales grew high where the transactions formed 55% vs. 45% for the ready villas. This growth is due to selling and registering around 430 villas in Tilal Al Gaf.  In terms of apartments, the off-plan transactions made up 44% vs. 56% for the ready apartment.       

Top Performing Areas

The top 5 performing areas for the off-plan apartments were:


For ready apartments, Town Square came first with 447 transactions.  The top 5 performing areas for the ready apartments were:

Regarding the off-plan villas, the top-performing areas were:

 

Ready villas:


And finally for plots:


Most Expensive Properties

Top projects with the most expensive sold apartments

  1. AED 59M IL Primo in Downtown Dubai

  2. AED 35M Volante in Business Bay

  3. AED 23M One at Palm Jumeirah in Palm Jumeirah

  4. AED 21M FIVE at Palm Jumeirah

  5. AED 20M Opera Grand in Downtown Dubai The Address- The BLVD in Downtown Dubai

Top areas with the most expensive sold villas

  1. AED 33M Palm Jumeirah

  2. AED 19M World Islands

  3. AED 10M Jumeirah First

  4. AED 8M Island 2

  5. AED 7M Arabian Ranches 1

Delivered Properties

Around 16,216 units were delivered this year so far, and 41,605 units are overdue so far in 2020.


 

This chart considers all units due to handover in 2020 vs. completed units in 2020 (even if they were scheduled for previous years)

Apartments average prices in the top 10 areas

 

Villas average prices in the top 10 areas

In the short term, we have a positive look for Q4 since it has always been better than Q3 over years.

Dubai is a world’s hub and tourism destination, ultimately, things will get better once flights are back to normal. However, the defaulting investors, who have bought off-plan or mortgage and are not able to continue the payments now form another force to pressure the prices. 

For more insights, visit: 

https://propertytrends.ae/dubai-real-estate-market-report-2020-3

Notes

  1. The data source is the Dubai Land Department

  2. Some villa transactions are registered in the Dubai Land Department as plots.



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