The capital value of Dubai’s residential properties is surging after years of steady decline, media reports said. The reports are produced by ValuStrat’s Price Index (VPI).
It is reported that the VPI for the UAE in December last year was considered stable at 65.3 points, recording only a monthly fall of 0.1 percent, which is the lowest slump in three years. Furthermore, the index recorded a 13.8 dip over 2019 on an annual basis.
ValuStrat, told the media, “Early last year, the property market fell markedly as the coronavirus pandemic halted mobility around the world. Today, the sector remains weak but there are reasons for optimism. Capital values of homes approached stabilisation at the end of 2020, as the downward trend of recent years currently appears to be coming to a gradual end. Stability and marginal improvements in prices were observed in 90 percent of established villa communities as well as 63 percent of freehold apartment areas.
The eager property buyers rushed to Dubai after the government eased lockdown and mobility restrictions last year and purchased homes which were ready for occupancy. The demand surge was mainly due to record low prices. The cash-based sales recorded a 19.5 percent surge in December, with sales of existing homes surged 31.8 percent. The off-plan sales were also surged but at monthly rate of only 2 percent.
The global property market has been hampered by the pandemic like any other sector. However, some economies have witnessed a good number of property buyers.