Dubai realty rebounds with record 72% jump in deal value

Dubai’s real estate sector rebounded at a record pace in the first four months of 2021, registering 51 per cent jump in transactions and 72 per cent surge in value year-on-year.The remarkable buoyancy underscores “the flexibility and attractiveness of the sector as well as the positive impact of the decisions and directives of the wise leadership, which, in turn contributed to enhancing investor and customer trust in the sector,” Dubai Land Department (DLD) said on Monday.

The real estate bulletin issued by DLD said Dubai registered 25,455 real estate transactions worth Dh92 billion from January to April 2021 period, thus achieving an increase of 51 per cent in terms of the number of transactions and 72 per cent in terms of value compared to the same period in 2020.

Interestingly, 8,749 new investors entered the market during the January-April period, representing 65 per cent of the total investors registered during the four month, a growth of 54 per cent compared to the same period in 2020.

The bulletin said the sector will continue to attract more real estate investors, thanks to its strong infrastructure and attractive investment opportunities.

The buoyancy also proves that the positive impact of the decisions and directives of the leadership helped the Dubai real estate sector “to keep pace with the new normal in a way that reinforces Dubai’s global position as a preferred real estate investment destination.”

Dubai’s real estate sector bucked worldwide trends with a 27 per cent surge in transactions in the first quarter of 2021 while global property transaction volumes declined by 13 per cent year-on-year to $187 billion, representing a resilient but uneven stage within the broader investment recovery, according to a JLL report. “The newly announced regulatory measures, local availability of the vaccine, and the upcoming Expo 2020 festivities are all opportunities to revive the real estate market in the UAE during 2021,” it said.

The total value of Dubai real estate investments during the first four months reached Dh36 billion, an increase of 44 per cent compared to the same period in 2020. “This confirms the continued flow of real estate investments since the beginning of the year at a high rate, which also strengthens the trust of local and international investors alike,” said the bulletin.

There has been an increase of 58 per cent in new contracts and 42 per cent in renewed contracts while 187,949 Ejari contracts were recorded during the four months.The top five areas for investor attractiveness in villa sales included Hadaeq Sheikh Mohammed Bin Rashid topping the list in April 2021, followed by Palm Jumeirah, Wadi Al Safa 5, Wadi Al Safa 7, and Al Yelayiss 2. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay, and Al Thanyah topped the list in April.

“It is expected that the real estate sector will witness increased growth and a greater recovery in the coming period following the permission of Dubai’s Supreme Committee of Crisis and Disaster Management to accept electronic permit applications for business activities of all kinds, in addition to the fast-approaching date of Expo 2020, which in turn will attract tourists and visitors from around the world and will constitute a great opportunity for the real estate sector to strengthen its position regionally and globally,” DLD said.