Even with the world wide pandemic, Dubai has witnessed “amazing amounts” of serious estate transactions above the earlier couple of months, the main business officer of a United Arab Emirates-primarily based house developer explained last week.

Aqil Kazim of Nakheel’s feedback come even as serious estate transactions in the 2nd quarter of 2020 plummeted 38.8% as opposed to the very same period of time last calendar year. There were 5,559 transactions in the April to June quarter this calendar year, down from nine,088 in 2019, according to the Dubai Land Section.

Kazim explained these are “unprecedented times,” with the coronavirus well being crisis owning an impression on the current market. The UAE has claimed 62,525 verified instances of the coronavirus and 357 fatalities, according to knowledge compiled by Johns Hopkins College.

“But you know, inspite of these situation, we have witnessed amazing amounts of serious estate action in the last couple of months,” he told CNBC’s “Capital Link” on Thursday.

Jet skis move by household skyscrapers on the waterside in the Dubai Marina district in Dubai, United Arab Emirates, on Monday, June 8, 2020.

Christopher Pike | Bloomberg | Getty Photographs

Transaction volumes for the first 50 percent of the calendar year fell 12.four% from the first 50 percent of 2019, after growing in the first quarter. The Dubai Land Section reported 15,883 sales from January to June in 2020.

Which is really an “active functionality,” Kazim explained. “As far as Nakheel is anxious, we ourselves have marketed more than 800 million dirhams ($217.8 million) really worth of house since March, and that is which includes all through the height of the pandemic. This actually highlights investors’ trust and self-assurance in Dubai’s serious estate sector.”

Actual estate solutions firm Asteco explained the reduction of the bank loan-to-price ratio and a “partial release of pent-up consumer need” resulted in an “rapid bounce” in sales towards the finish of the 2nd quarter, after motion restrictions were being lifted.

Kazim explained prospective buyers are wanting for more substantial gardens and living areas for the “new regular” where persons do the job from dwelling and youngsters master from dwelling.

“Persons have basically began to make that decision to devote in a house that they most likely held back again in the prior yrs due to the fact of this alter in acquiring actions,” he explained, calling these finish-consumer buys a “dedication” to Dubai.

Consulting firm ValuStrat explained house transactions could improve in the medium time period.

“Price tag drops, decrease lending costs and sweetened (bank loan-to-price) guidelines could motivate some prospective prospective buyers to make a acquire,” it explained in a assessment of the current market.

The emirate has been working with an oversupply in its house current market, with rates and rents underneath tension. Asteco explained apartment rental costs have fallen 40% since the peak in the 2nd quarter of 2014.

Rents for residences, villas and offices could proceed to slide, the report explained. “Asteco anticipates that this pattern is most likely to prevail, or even intensify because of to the anticipated volume of added offer mixed with a perhaps sharp drop in need in the brief-to-medium time period because of to the impression of COVID on employment.”

By Lela