As Dubai resumes its business activities despite the pandemic, the Dubai real estate industry is working hard to recover. The government implemented flexible payment schemes and waiver of fees to attract investors again. It seems the new policies are working since the real estate experts see a surprising rise in the sales trend. Let us find out about the astounding results of sales growth last June 2020.
Dubai Real Estate Yields an Astounding 60% Sales Growth in June
Despite the halt due to pandemic, the experts saw a significant 60% sales growth in June 2020 compared to its previous month. For the past few weeks, the Dubai real estate market closed more than 570 transactions weekly. This data yield an 11% increase in sales transactions for the month of June. This amounted to over 60% sales growth in Q2 2020 compared to the prior year.
The second quarter of 2020 had recorded an astounding total of 5,564 Dubai real estate transactions. These transactions generated a whopping $2.9bn (AED 10.8bn). This figure already reached 50% of the total transactions in Q1 2020. The real estate experts claimed the sales growth in Q2 2020 was still doing well despite the pandemic. If there's no pandemic, they didn't hesitate the transactions would tie-in with Q1.
The Projected Recovery
Meanwhile, Property Finder's Lynnette Abad, said the strong sales growth last June laid a strong foundation for Dubai real estate strong recovery. According to their data, the experts projected Dubai is in for a sharp "V-shaped recovery" in the market as the volume of transactions for Q3 will eventually align in pre-COVID days, specifically in February and early March 2020 before the lockdown.
The Contributing Factors
Abad added they have seen a steeper demand for Dubai real estate properties despite the lockdown. According to her, this is due to the fact that the public is searching for a secure place to stay during this pandemic. They want to get comfortable and homey during the quarantine or lockdown. Aside from that, most people are taking advantage of real estate properties' lower prices and flexible payment schemes.
Furthermore, the demand for villa and townhouses are increasing due to its attractive prices and amenities. Abad stated that for the past few weeks, most Dubai real estate agencies have also noted record-breaking transactions. The mortgage inquiries were high, the interest rates received an all-time low. Meanwhile, most Dubai banks are giving out the best offers to entice more people into purchasing mortgages.
The Overwhelming Demand
Abad said their data also showed the demand for villa sand townhouses rose to an astounding 400%. She's expecting the trend will increase further in the summer months as most people prefer not to travel due to the pandemic. They get to spend their money on investing in Dubai real estate instead of fulfilling their travel goals in the meantime.
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