Dubai’s real estate market displayed several encouraging signs over the first quarter, including an annual rise in sales volume and a slowdown in the pace of value declines across the Emirate, Emirates News Agency reported on Monday.
“This positive sentiment, however, is likely to be tempered in the near-term by the COVID-19 crisis,” according to the latest Observer: Dubai Residential Report the first quarter of 2020 from Chestertons. A total of 4,458 new units were launched in the first quarter across all freehold areas, a near 30 percent decrease when compared to the first quarter of 2019 when 6,328 units were launched.” This slowdown is further compounded when compared to the the first quarter of 2018 data, with over 12,000 units launched in Dubai,” the report noted.
Chris Hobden, Head of Strategic Consultancy, Chestertons MENA, said, “Dubai’s residential sector demonstrated a resilient start to 2020, with a year-on-year increase in sales volume reflecting more positive buyer sentiment. While residential values continued to fall over the first quarter, the rate of decline lowered on both an annual and quarterly basis.
The drop in new launches was also a welcome move forward for a sector where oversupply has long driven down values.
“It is likely that COVID-19’s impact will be reflected in second-quarter figures, with disruption to the transactional process itself, coupled with an overall economic contraction, likely to cause near-term challenges.”
