Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

Dubai housing prices down to 2012 level

21.04.2020
Dubai housing prices down to 2012 level
Due to restrictions associated with coronavirus, Dubai property sales in March experienced a record-breaking fall by 42 per cent, two agencies report.

According to recent studies, Dubai's real estate market is beginning to feel the effects of the COVID-19 pandemic as widespread travel bans and quarantine measures aimed to curb the spread of the virus stop investors from investing in housing.

According to an analytical company ValuStrat, Dubai off-plan sales volume in March 2020 decreased by 42% compared to February, and the average capital cost of real estate decreased by 10% year-on-year.

Today, buyers can buy property in Dubai at almost 2012’s prices, and the per square feet cost fell to AED933 10,076 (US$254).

“The COVID-19 pandemic began to show its impact on the emirate’s economy and real estate sector in the second half of March, when property demand declined due to the “Stay at home” campaign started in support of a nationwide disinfection program,” the consulting firm said in a statement.

In another analysis, another consulting firm, Asteco, reported that prices for apartments, villas and offices in Dubai fell by an average of 11-12% compared to the first quarter of last year.

However, the real annual demand and prices expectations for 2020 have yet to be revised, since the indicators of the first quarter were mainly recorded before the pandemic, and therefore we can expect their further decline.

“Price cuts are becoming more likely in the event of a long recession,” said Elaine Jones, founder of Asteco.

Real estate sales in Dubai have been hit hard, as travel restrictions make it difficult for potential buyers to view homes. Widespread restrictive measures and quarantines imposed by governments around the world also deter potential foreign investors from the UAE real estate market. And many local buyers also temporarily suspended their real estate investment decisions due to the same blocking measures.

“Experts have predicted that sales this year will either decline or recover, completing a correction cycle that led to lower property prices and lower rents,” the Asteco report said.

“Before the COVID-19 pandemic, the market was growing in terms of real estate sales. At the moment, this trend seems to have ceased. And yet, it is too early to assess the longer-term economic impact, if any, of COVID-19 on the UAE's real estate sector,” says Hyder Tuyma, Head of Real Estate Research at ValuStrat.

However, there is light at the end of this tunnel for property owners. The government recently launched initiatives and reforms to cope the oversupply and stimulate investors’ interest.

New offers

Asteco reports that the supply of new apartments decreased significantly in the Q1 of 2020, when 5,750 units of real estate were handed over in Dubai, which is almost half of the 8,000 units delivered in the previous, last quarter of last year. The number of new office premises has also reduced by almost a half, from 1.25 million square feet introduced to the market in the last three months of 2019, to just 500,000 square feet delivered in March 2020.

Rents

Apartments, villas and offices rentals continued to decline, by 3%, 2% and 3% per quarter, respectively. On a year-on-year basis, the decrease was 12%, 9% and 12%, respectively.

Sales

As for prices in the sales sector, apartments, villas and offices became more affordable by an average of 2% per quarter and by 11-12% per year.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com


Latest Availability
RENT
125,000 / year
Ref.No: OF1209
Office
1,655 ft2
76 AED/ft2
RENT
58,500 / year
Ref.No: OF662
Office
1,300 ft2
45 AED/ft2
SALE
2,350,000
Ref.No: AP670
1BR Apt
1,308 ft2
0 AED/ft2
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management