25 January 2021

Dubai & Abu Dhabi Real Estate Market Overview FY 2020

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MACRO ECONOMIC

The Dubai economy had shrunk by 10.8% in the first half of 2020, however by the end of the year it is forecasted to decline by 6.2% only. The improvement is due to the opening of the economy with strict measures and due to the stimulus packages provided by the Dubai government which amounted to a total of AED 6.8 Billion.

The general budget for the Dubai Government will be AED 57.1 Billion for 2021. The infrastructure and transportation sector has led to an allocation of 41% of the total spending. Security, justice and safety sees 22% of the total expenditure. Health, education, housing, women and children’s care, as well as developing reading and coding initiatives, represents 31% of total expenditure.

Residential Transaction Volume (Sales)

Residential transaction registrations have gradually increased between the second half of 2018 and the end of 2019 due to lower real estate prices coupled with attractive payment plans as well as increase in the confidence of the investors.

Residential Transaction Value (Sales)

Average transaction price in the ready property market stayed at AED 1.2 Million per transaction while average transaction price in the o-plan property market declined to AED 1.1 Million in 2020.

Apartment vs Villa Transactions (Sales)

Average o-plan villa transaction price showed stable trend in the last two years in correlation with aordable villa launches. Average o-plan apartment transaction price declined to 750k in the last quarter of 2020.

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