Dubai residential property prices rose in April-June for a second straight quarter as demand picked up after the pandemic, consultancy Knight Frank said on Tuesday, although average prices are still 26% below the last market peak six years ago.

Average transacted prices rose by almost 1% in the second quarter of this year, following a 0.5% rise in the first, said Faisal Durrani, Knight Frank’s Head of Middle East Research.

The uptick put some new energy into a property market that saw a sharp fall in activity at the height of the pandemic and had been in a five-year slump prior to that.

The 1% rise in April-June was the fastest quarterly rise since the summer of 2014. The last time meaningful gains were registered for two consecutive quarters was in the first two quarters of 2014, Durrani told Reuters.

“The momentum that began building late last year has been sustained and we are seeing a slow, but steady upward creep in transacted values,” Durrani said in a report.


Picture used for illustrative purpose.

Prime Dubai properties including luxury villas, sea-view apartments and second-hand family houses started to be snapped up in the latter part of last year by buyers seeking more space in the pandemic and taking advantage of decade-low prices, easy financing and an economy that opened early for business despite the pandemic.

“It’s larger homes - villas - that are seeing the sharpest rebound, with prices now about 17% below the last market peak six years ago,” Durrani said, compared to average home prices being 26.3% below previous highs in 2014/15.

Knight Frank said 128 properties over Dhs20 million ($5.4 million) sold between January and June 2021, the highest level since 2015, when 137 were sold.

Although prime property values are showing growth, oversupply continues to weigh on apartment sales and apartment values in the emirate.

Dubai’s economy - reliant on trade, tourism and its international reputation as a regional hub for business services - was hard hit by the COVID-19 pandemic last year as firms slashed jobs. Many foreign workers, needed to support demand in a real estate sector that contributed 7.2% of GDP in 2019, left.

Meanwhile, the sixth edition of the Global Business Forum (GBF) Africa will be held in Dubai on October 13-14, 2021 under the theme Transformation Through Trade.


Picture used for illustrative purpose.

This year’s Forum is organised by Dubai Chamber and Expo 2020 Dubai on the sidelines of Expo 2020 Dubai, a mega event bringing together 173 countries and 24 international organisations.

GBF Africa 2021 will shed light on the global economic recovery following the Covid-19 pandemic and its effects on trade and business around the world.

The high-level forum will take a closer look at Africa’s next phase of economic development in post-pandemic era and beyond, as discussions examine the role of cross-border collaboration in creating new business opportunities and driving sustainable growth across the continent.

As a catalyst for expanding trade links and economic cooperation between Africa and the UAE, the upcoming event builds on the substantial progress achieved by the previous five editions of the forum, which paved the way for new bilateral partnerships and economic benefits.

Key topics at GBF Africa 2021 include the outlook for the African economies, expected impact of the African Continental Free Trade Area, the evolution of global trade, the adoption of advanced technologies and the role of innovation in strengthening capital markets, as well as promising investment opportunities emerging in a post-Covid-19 world.

The Global Business Forum series explores trade and investment potential in promising markets across Africa, the Commonwealth of Independent States (CIS), Latin America and the ASEAN region. Since its launch in 2013, the GBF series has welcomed 32 heads of state and government, 140 ministers and government officials, and 9,950 participants, including business leaders and executives from 65 countries around the world. More than 1,800 business meetings were held between UAE investors and their global counterparts.

Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub.

Reuters