The Dubai housing market continued to take a hit from the coronavirus pandemic, with sales activity plunging by more than half in June, even after real estate agents and other businesses reopened from the nationwide lockdown, research shows.
A total of 4,459 homes were sold in Dubai during Q2 2020, down 48.8 percent compared to Q1 2020. Sales of ready-to-move-in homes fell 56.6 percent in Q2 compared Q1 and 43.6 percent compared to same time last year, according to ValuStrat’s latest report.
Sales of off-plan residential units also dropped by 43.7 percent quarter-on-quarter and 36.9 percent year-on-year. Off-plan sales represented 66 percent of all home sales. Residential rental values were also down 5.2 percent quarter-on-quarter.
Buyers snapped up apartments and villas with a total value of 7 billion UAE dirhams ($1.9 billion), with an average ticket size of 1.57 million dirhams, during Q2.
Researchers at ValuStrat did not say when the slump will ease or sales upticks will start to show, but they warned that the anticipated decline in population numbers due to massive job cuts and expat repatriation could have a negative economic impact.