Sales and rents of properties in Dubai's most popular areas have seen a significant jump in the first half of 2021 thanks to the emirate's proactive moves that have spurred demand. These moves include the introduction of the Golden Visa, 100 percent foreign company ownership and remote work visas, in addition to the swift rollout of vaccination campaigns to make the emirate a safe place for investors and residents.
According to the combined data from Bayut & Dubizzle, properties for sale in Dubai have seen price increases between 6 percent to 20 percent in H1 2021.
While high-net-worth-individuals (HNWIs) favoured established communities such as Dubai Marina, Downtown Dubai and Arabian Ranches, Newer gated suburbs such as Dubai Hills Estate have also grown in popularity during H1 2021.
Buyers flocked to Jumeirah Village Circle (JVC), Akoya Oxygen, Dubailand and Jumeirah Lake Towers for affordably-priced apartments and villas, the report said.
The surge in rents was only confined to the luxury real-estate market.
While affordable apartments saw minor decreases under 10 percent in asking prices, luxury properties experienced increases up to 13 percent, the report said, adding that the affordable villa segment has seen rental rates remain largely steady in H1 2021, while the luxury market has observed a rental growth between 5 percent and 21 percent.
Tenants working within a tighter budget have shown a preference for Jumeirah Village Circle (JVC), Al Nahda, Mirdif and Akoya Oxygen, while Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha have been most popular with high-income renters searching for luxury apartments and villas.
Haider Ali Khan, CEO of Bayut & dubizzle, said: “Since the beginning of 2021, there have been growing signs that the Dubai property market is on a steady upward curve, with prices appreciating especially in the sales segment. Most real estate agencies have also confirmed this by sharing the outstanding results of their H1 performance.
Top Dubai developer Emaar Properties reported sales surging by 250 percent in the first five months of 2021 compared to same period last year, while the Dubai Land Department recorded a 221 percent growth in the value of sales transactions in May 2021, compared to same period last year.
Data from Dubai Land Department shows that 16,558 sales transactions for residential properties worth AED 24.7billion ($6.73 billion) were recorded in Dubai in the first half of the year. Transactions for ready properties came out ahead in H1 2021, accounting for 59 percent of total residential sales. "This could be attributed to the growing demand from end-users looking to transition to homeownership or upgrade their homes," the report noted.
“The positive performance of the Dubai property sector has also been reflected on both of our portals with a combined traffic of over 28M sessions. High COVID vaccination rates, investor-friendly reforms and an economy that’s been able to quickly adapt and get back on its feet post the lockdown will continue to drive the growth of the Dubai real estate market,” Khan said.
(Reporting by Seban Scaria; editing by Daniel Luiz)
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© ZAWYA 2021