November 2020 Property Update

It is no secret 2020 has been a tough year all round, below I have outlined how the market is performing in both residential sales and leasing across the Emirate.  

Supply

Completed Supply to date 2020

 Apartments – 21,746 – main areas Deira, Al Furjan, Business Bay, Nad Al Hamar

Villas/Townhouses – 4,719 – main areas Akoya, Arabian Ranches 2, Dubai Hills, Mudon

Upcoming Supply 2020

 Apartments – 8,277 – main areas Business Bay, Sports City, JVC

Villas/Townhouses – 3,550 – main areas Akoya, Dubai Hills, MBRC

 Sales

Q3 2019 v’s Q3 2020

Residential Sales Q3 2019

Volume – Apartments 2,659 – Villas/Townhouses – 978

Average Listing Price AED1,255 per sq ft

Transferred AED1,126 per sq ft

Residential Sales Q3 2020 –

Volume – Apartments 2,738 – Villas/Townhouses – 1,652 - 50% increase on 2019

Average Listing Price AED1,159 per sq ft -8% YOY

Transferred AED964per sq ft -15.5% YOY

 Transferred prices have seen a drop of 15.5% from 2019, this is for many reasons, apart from the obvious global economy, Dubai has seen its largest supply from Q4 2019 to date, more affordably priced developments in suburban areas.  

 Changes in the Sales Market from the beginning of 2020 to now:

 May 2020 Apartments           October 2020              

Secondary Transactions 73      1,074 Transactions +93%

Secondary Market AED958,683      AED1,098,961 +14%

Total Sales AED69,983,846            AED1,180,283,661 +94%

Off Plan AED1,148,002                 AED1,502,249 +23%

Total Sales AED191,716,371         AED1,164,243,138 +83%

Off Plan Transactions  167       775 +78%   

 May 2020 Villa/Townhouses        October 2020              

Secondary Transactions  32       730            +95%

Secondary Market AED3,104,997     AED3,329,470     +7%

Total Sales AED99,359,900.              AED2,430,512,918.  +95%

Off Plan AED3,386,580.                   AED1,591,067.   -53%

Total Sales AED60,958,440.              AED577,557,418     +89%

Off Plan Transactions 18           363               +95%

 Leasing Demand 

Listings = % properties being advertised for the month (share of the market)

Searches = % of total searches for the month

Leads = % of tenants actual inquiries for the month

Keywords = tenants preferences 

Result = based on listings v’s searches 

 Dubai Marina –November 2020 

Listings – 12.7% 

Searches – 11.7%

Leads – 12.1%

Top Keywords: Marina View, Chiller Free, New

Result – Over Supply

Dubai Hills

Listings – 1.6%

Searches – 2.5%

Leads – 2.4%

Top Keywords: Treo, Sidra, Brand New

Result: Under Supply – good conversion

Downtown

Listings – 9.6% 

Searches – 7.3%

Leads – 8.8%

Top Keywords: Brand New, Furnished, Chiller Free

Result: Good Supply

Palm Jumeirah 

Listings – 5.5% 

Searches – 5.2%

Leads – 4.9%

Top Keywords: Sea View, Upgraded, Private pool

Result: Good Supply

Springs

Listings – 1.1% 

Searches – 1.6%

Leads – 1.4%

Top Keywords: Upgraded, 4e Lake, 3E

Result: Under Supply

• An ‘Over Supply’ of properties in an area can be for various reasons: Handover of new buildings
• Prices are too high for the current tenant’s requirements
• The area is less desirable for tenants on the market. 

  A ‘Good Supply’ means that supply is meeting the current demand while ‘Under Supply’ means there is more tenant demand than properties available.

 Tenant Migration

 Data gathered from tenant move in and move out requests. Most areas in September 2020 showed more tenants moving to in than moving out.

Palm Jumeirah +365 –average tenancy 453

Jumeriah Village Circle +1,276 – average tenancy 175 days

Downtown: +489 – average tenancy 335 days

Business Bay: +167 – average tenancy 280 days

Town Square: +287 – average tenancy 158 days

Arabian Ranches 1: -5 – average tenancy 555 days

Buyers Current Search Behaviour August – November 2020

Top searched areas in order 

Dubai Marina, Palm Jumeirah, Downtown, Dubai Hills Estate, Arabian Ranches, JVC, Business Bay 

By Bedrooms Apartments and Villa/Townhouses

21% 3/4 bedrooms, 12% 2 bedrooms, 8.4% 1 bedrooms, 2% Studios – 49% no selection

Top Searched Key Words

In order – upgraded, furnished, sea view, payment plan, pool, rented

Tenants Current Search Behaviour August – November 2020

Top searched areas in order 

Dubai Marina, Downtown, Palm Jumeirah, JVC, Business Bay, JLT, Barsha, JBR, Dubai Hills Estate

By Bedrooms Apartments and Villa/Townhouses

 17% 3/4 bedrooms, 16.5% 2 bedrooms, 15% 1 bedrooms, 6% Studios – 43% no selection

Top Searched Key Words

In order –   Chiller Free, Brand New, Upgraded, New, Pool, Private Pool, Garden, Sea View, Balcony, Chiller Free

Please do not hesitate to get in contact if you are looking to sell or lease your property, or if any property related questions. 

Laura V Adams

data from propertymonitor and datafinder.ae