The total value of real estate transactions registered by the Dubai Land Department (DLD) in Dubai during the first three months of 2020 reached 20 billion UAE dirhams or US$5.44 billion, amid the economic consequences of the spread of coronavirus (COVID-19).
The Director General of the Department, Sultan Butti bin Majren, also said this number includes 100,000 electronic transactions, which, due to the department’s innovations in the field of remote transacting, were completed by real estate buyers and sellers in Dubai in Q1 2020.
It should also be noted that on Thursday, June 4, DLD announced that the value of all transactions registered up to date (from the end of March to June 4) already reached AED1.34 billion (US$360 million).
“Now that the moving restrictions in Dubai have been lifted, and new remote methods of concluding online transactions have become available, both for off-plan real estate and for secondary housing, the Dubai real estate market should return to its normal state with the previous volumes of transactions,” Bin Majren forecasted.
Off-plan real estate transactions accounted for 72.1 per cent of the total number of transactions completed in April, while resale deals (for secondary units) accounted for 27.9 per cent of all transactions registered.
However, the number of real estate deals conducted in Dubai in April was significantly lower than in the previous month, due to quarantine restrictions imposed by the government to curb the spread of the coronavirus pandemic. During this month, 1825 transactions were registered, which is 47% less than that of March.
Some time earlier, analytical platform Cavendish Maxwell reported that real estate prices in Dubai fell by 8.3% year-on-year in the first quarter, which is slightly less than in the 12 months of the previous year up to April, 2019, when there was a 9.7 per cent year-on-year decrease registered.
The majority of the off-plan real estate transactions were closed by Dubai Properties developer. The firm concluded 26.2% of the total transactions number in Q1. Its maximum transactions number was recorded in respect of the off-plan real estate units at such developer projects as La Vie (Jumeirah Beach Residences), Madinat Jumeirah Living and Villa Nova.
Another major Dubai developer Emaar was no less effective in off-plan housing sales in Q1, having closed 23.5% of all off-plan deals, with most of them in the Marina Vista project (Emaar Beachfront) and other developer’s projects in Dubai Creek Harbor and Opera District.
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