November 2020 Property Update

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 affordable 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 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–

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