Overall Dubai Sales Price Index rises 0.79% in 2nd quarter

Dubai Land Department, in cooperation with Property Finder, launched the fourth edition of Mo’asher, Dubai’s official sales price index. The base year for Mo’asher is 2012 and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.

A strong momentum in June laid the foundation for a faster recovery, and patterns of a V-shaped recovery have been seen. In Q2 2020, Mo’asher showed a 0.79% rise compared to Q1 2020 and 15.3% compared to the base year Q1 2012.

The monthly index scored 1.113 in June 2020 compared to 1.121 in May 2020, with an index value of Dhs1.06 million.

In June 2020, the overall monthly index recorded 1.113 and an index value of Dhs1,066,791. This is a decrease of 0.09% since the beginning of the year and a decrease of 0.7% month-on-month. However, if we look at the quarterly index and compare Q1 and Q2, the index number has increased by 0.8% from 1.144 to 1.153 with an index value of Dhs1,072,450.

In June 2020, the monthly apartment index recorded 1.179 and an index value of Dhs1,018,974. However, if we look at the quarterly index and compare Q1 and Q2, the index number has increased by +0.58% from 1.206 to 1.213, with an index value of Dhs1,026,424.

In June 2020, the monthly villas/townhouses index recorded 1.040 and an index value of Dhs1,628,315. This is a decrease of 1.79% since the beginning of the year and a decrease of 1.89% month-on-month. However, if we look at the quarterly index and compare Q1 and Q2, the index number has not changed at all and has stayed at 0.991, with an index value of Dhs1,636,095.

Sultan Butti bin Mejren, Director General of DLD, commented: “This data that inspires hope in the hearts of the various parties confirms the facts that everyone has agreed on, most prominently the well-established rules on which the Dubai real estate market is based upon, which was consolidated by the strong infrastructure and transparent legislation that ensured the enhancement of confidence among investors across all levels. We expect the market to grow in H2 2020 following the outbreak of the pandemic and for preparations made by the emirate for various activities to return to normal, making certain to apply precautionary measures that would depend on the public’s awareness.

According to the same report, Mo’asher constitutes an important step that helps Dubai achieve further progress in this aspect, given the adoption of a single index that can be widely used by all market participants.”

Bin Mejren added: “On the other hand, Dubai’s movement up the ranks in JLL’s Global Real Estate Transparency Index 2020 from 40th to 36th is expected to contribute to an increase in foreign direct investment and enhanced sector transparency.  Dubai continues to make progress in its surroundings, while continuing to improve the availability of market data to reach the highest ranks and enter global competitiveness in the field of real estate transparency.”

Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector at DLD, said: “JLL’s Global Real Estate Transparency Index 2020 highlighted the prestigious position held by Dubai, ranking first in the Mena region as the most transparent real estate market.

This had a significant impact on the growth of the volume of foreign direct investment as the real estate sector acquired a large share of it, which prompts us to coordinate with all concerned parties to meet the aspirations of real estate investors in accordance with the best international standards and practices to preserve Dubai’s image and its internationally prestigious reputation.

On the other hand, we have taken note of the diversification of offers to suit different segments and the provision of flexible payment plans to attract the most likely buyers. Moreover, we continue to coordinate with the Higher Committee for Real Estate Planning to understand the market situation and the needs and expectations of the various parties.” Michael Lahyani, CEO and Founder of Property Finder, commented: “Dubai continues to strengthen its position as the most transparent real estate market in Mena.

WAM