Property prices in Dubai's popular neighbourhoods have softened during the first half as conditions become more favourable for buyers and renters amidst the ongoing Covid-19 crisis, according to a report by UAE reaal estate portals Bayut and dubizzle.

 

Similar to other parts of the world, the UAE has also experienced the impact of the unprecedented Covid-19 pandemic in the first half of 2020. 

 

The temporary restrictions on movement and travel have also had a predictable effect on Dubai’s real estate sector, stated the duo in its H1 2020 Market Report. 

 

Despite this challenging situation, the latest, combined data released by Bayut and dubizzle, reveals that property prices for sale and rent in Dubai’s popular neighbourhoods have remained fairly stable in H1, experiencing minor declines under 4% overall when compared to last year's prices, showing the resilience of the Dubai real estate market. 

 

However, landlords and sellers have become more open to negotiations than ever before as a result of the unpredictability Covid-19 has brought to the market, it added.

 

Prospective buyers on both platforms remain interested in established areas with family-friendly amenities such as Dubai Marina, Downtown Dubai, Arabian Ranches and Palm Jumeirah, while well-integrated communities such as Jumeirah Village Circle, Dubai Marina, Mirdif and Jumeirah continue to dominate the attention of tenants in Dubai, according to consumer interest on Bayut and dubizzle.

 

As per the Dubai Land Department’s data, 15,897 sales transactions were recorded in Dubai between January to June 2020, amounting to a total value of AED 32.5 billion ($8.884 billion). 

 

While the real estate transactions in Dubai have predictably declined in H1 2020, due to the temporary movement restrictions implemented across the country, the proactive measures introduced by the UAE’s Central Bank such as the increase in the loan-to-value ratio for first-time buyers, are likely to further incentivise buyers and investors and result in greater recovery in the coming months, stated the report. 

 

During the first half, demand has increased for established family-friendly neighbourhoods in Dubai, as per the combined data released by Bayut and dubizzle. 

 

Arabian Ranches has claimed the top spot among buyers and investors interested in ready villas in Dubai in H1 2020, followed by Palm Jumeirah and The Villa. 

 

The average price-per-square-foot in Arabian Ranches has seen a minor increase of 1.6% in H1 2020, rising from AED 882 to AED 896, while he sales price-per-square-foot for villas in the next most sought after area, Palm Jumeirah has remained largely unchanged, averaging at AED 2,027 in the first half of 2020. 

 

Newer developments such as Dubai Hills Estate, Dubailand, Damac Hills (Akoya by Damac) and Akoya Oxygen have also appealed to buyers interested in villas in H1 2020. 

 

When it comes to ready apartments for sale in Dubai, Dubai Marina has continued to dominate the interest of buyers and renters in H1 2020. The average price-per-square-foot for apartments in this waterfront community has seen a minor decrease of 2.2%, going from AED 1,271 to AED 1,243. 

 

Other popular, upscale communities such as Downtown Dubai, Jumeirah Beach Residence (JBR) and Palm Jumeirah have seen sales price-per-square-foot remain largely stable in H1 2020. The apartments in sought-after areas such as Jumeirah Village Circle (JVC), Jumeirah Lake Towers (JLT), Business Bay, Dubai Silicon Oasis and International City have also experienced marginal declines in sales prices under 6.5%, said the report.

 

International City has continued to be the best option for investors interested in areas offering a high return-on-investment based on projected rental yields. The ROI in International City has continued to be high in H1 2020 averaging at 9% for ready apartments. 

 

When it comes to villa communities with high ROI, Jumeirah Village Circle (JVC), has emerged as the best option with an average ROI of 6.1% for villa properties, it added. 

 

Dubai’s off-plan market has continued to offer buyers with opportunities to invest in well-integrated developments at different price points, remarked Haider Ali Khan, CEO of Bayut and dubizzle.

 

"Over the past few months, the world has gone through a particularly challenging period, grappling with the effects of a global health emergency. But it has also been a time when the human race has proven its adaptability and willingness to step up to the challenge," he noted. 

 

"In the UAE, we’ve seen both the people and the government rise to the occasion, take responsibility and change their lifestyles while working and learning from home. At the same time, Dubai’s property sector has also adapted and stayed resilient during the pandemic, with the brokerage community turning to innovative virtual tools to facilitate real estate activity and stay connected with prospective buyers and tenants," he added.-TradeArabia News Service