Dubai, UAE: Dubai’s real estate sector has recorded phenomenal growth 2021, with an impressive boom in rental and sales prices across prominent neighbourhoods according to Bayut & dubizzle's Dubai Property Market Report for 2021. Based on the search trends observed on the two property advertising powerhouses of the region, 2021 has proved to be an exceptional year for real estate, with their combined inventory increasing by almost 75% and prices reaching unprecedented highs.
- Bayut & dubizzle’s combined data reveals that properties for sale in Dubai’s popular areas have recorded price increases of up to 35% in 2021.
- In the affordable segment, the most searched for areas by prospective buyers have been DAMAC Hills 2 and Jumeirah Village Circle for villas and apartments respectively. High-Net-Worth investors, on the other hand, have preferred integrated communities like Dubai Marina and Downtown Dubai for apartments and Arabian Ranches and Dubai Hills Estate for villas during 2021.
- The most popular areas of JVC, Al Nahda, Bur Dubai, Dubai Silicon Oasis and Deira have experienced declines between 1-12% in the average rental cost of affordable apartments as per Bayut & dubizzle data, with the exception of smaller units in Al Nahda. On the other hand, luxury flats in sought after areas have seen substantial increases in rental costs by up to 26%. The budget villas in Dubai’s popular areas have conversely become more expensive by up to 21% in 2021, while the rental rates for luxury houses in highly searched-for areas have observed massive growth of up to 41%.
- Tenants in search of affordable properties have mainly focussed on the apartments in Jumeirah Village Circle (JVC) and Al Nahda and the villas in Mirdif and DAMAC Hills 2. High-income tenants have mostly searched for units in long-time favourites Dubai Marina and Downtown Dubai for upscale flats, while Jumeirah and Al Barsha have remained the top choices for expensive villas.
- As per the Dubai Land Department, 19,996 residential transactions worth AED 32.9 billion have taken place during 2021. This could be attributed to new investors entering the market for attractive property options, following the Expo 2020 led boost to the economy and the burgeoning demand for bigger homes by the residents.
- DLD has also confirmed that a total of 602,714 Ejari contracts were registered in 2021, of which 315,222 were new contracts.
As prices in most popular areas of Dubai appreciate, it is important to acknowledge the emirate’s flexible legislations, strategic economic initiatives and effective response to and management of the pandemic that have made it a safe haven for investors.
According to the DLD, there has been a 100% increase in the investment value this year as compared to the figures recorded in 2020. The numbers show that 52,415 investors entered the real estate market in 2021 and contributed to the 72,207 new investments in the sector. Additionally, 35 real estate projects valued over AED 11B were also completed in 2021, with 319 projects in progress, to meet the rising demand for real estate in Dubai.
Commenting on the trends, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: “It has been an interesting year for the economy of the country, and the contribution of the real estate sector towards this growth is stronger than ever. There have been some record-breaking sales and rental transactions in the emirate last year and our own inventory has increased substantially to meet the rising demand. If we look at data from DLD,the city’s real estate sector also attracted over 38,000 foreign investors from outside the GCC region in the last year alone, which is indicative of the growing demand for investment in Dubai from international investors. Thanks to the many initiatives launched by the government to safeguard the public and create a viable environment for investment, we can expect the demand to stay steady for Dubai real estate in the coming months too.”
© Press Release 2022
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