On the streets of Dubai you still meet people with masks. The Corona virus is also a concern in Dubai and strict hygiene regulations continue to apply. As already mentioned in the half-year report, the real estate market is also affected by this pandemic. After this shaky start to the next six months, the real estate market in Dubai recovered strongly. The third quarter was marked by many promising events.
According to the Bayut and dubizzle's report, prices remained competitive. In some of the established residential areas, a small fall in rental as well as purchase prices of less than 5 percent was observed. Transactions increased especially in the most popular residential areas, reaffirming the importance of location as well as the quality of the property. The Dubai Land Department registered an impressive increase in transactions of over 46 per cent compared to the second quarter. We are happy to recall our words in the half-year report, "Location and Quality is Key!".
This shows that Dubai is recovering from the setback of the Corona pandemic and remains an attractive place for real estate investment. In addition, news such as the announcement of a retirement visa program and updated Expo data reinforced Dubai's attractiveness.
Our assessment of the situation with an outlook
The hot summer days as well as entry restrictions discouraged tourists from travelling to Dubai. Despite all these circumstances, prices remained stable and transactions in the real estate market increased impressively. Dubai has thus come through the summer months with flying colours!
As temperatures drop and travel restrictions are eased, Dubai will once again see more tourists, business people and new expats. The property market is starting to recover further from the pandemic and the outlook for the future also seems more positive. Likewise, the recently announced diplomatic relationship between the United Arab Emirates and Israel is creating a buzz among businesses.