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Dubai prices reverse downtrend in April as off plan registrations eclipse resale

Dubai property prices experienced what most would consider an unexpected uptick in April 2020, with prices increasing 0.49% from the previous month

Median apartment price in April at AED 1,282,292 and villa price at AED 2,500,000 April transactions lower by 47% on a monthly basis and 36% on a yearly basis Off plan registrations in April remarkably higher than the rolling 12-month average

By: Property Monitor

Dubai property prices experienced what most would consider an unexpected uptick in April 2020, with prices increasing 0.49% from the previous month.Prices in April stood at AED 866 per sq ft, marginally higher than the AED 862 per sq ft recorded in March.

Read: Abu Dhabi Real Estate Transactions in April increased by 34% yoy

The reversal in the downward trend in our Dynamic Price Index value, and therefore prices, can be attributed to the disproportionate level of off plan transactions recorded—off plan accounted for 72.1% of transactions in April compared to only 27.9% for resale. Historically, this transaction split has averaged 55% off plan to 45% resale.

As anticipated, the volume of closed transactions in April was significantly lower than the previous month as mobility restrictions impacted financing and purchase decisions. A total of 1,825 transactions were recorded during the month, down 47% from March.

Read: Property Development Valuations in the Light of Covid-19

For detailed insights please see attached the full report or click here.