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Dubai realty keeps its poise, posts transactions worth Dh11B+

Dubai - Bullish data once again underscores emirate's attractiveness as a preferred global real estate investment destination

Dubai’s resilient real estate sector continued to witness a steady surge in investments by recording 5,359 deals worth over Dh11 billion in May.

While 11,387 new investors entered the market comprising 66 per cent of total registered investors since the beginning of the year, 6,021 real estate transactions worth Dh21.8 billion were registered in May, an increase of 197 per cent and a surge in value of 221 per cent compared to May 2020, according to the real estate bulletin issued by the Dubai Land Department (DLD).

The bullish data once again underscores Dubai’s attractiveness as a preferred global real estate investment destination and the emirate’s “flexibility in adapting to various developments, thanks to the legislative environment and superb infrastructure”, the DLD’s Real Estate Updates noted.

Since the beginning of the year, Dubai has recorded Dh36 billion worth of real estate investments, an increase of 44 per cent.

The bulletin showed that the value of real estate brokerage achieved by effective real estate brokers in Dubai’s real estate reached Dh827 million since the beginning of the year. In addition, 253,959 Ejari contracts were recorded in January to May, 53 per cent of which were new and 42 per cent were renewed.

The residential sales index achieved 1,071 points during May, with a growth rate of 7.1 per cent compared to the base year.

The top five areas that attracted investors in the villa sector included Hadaeq Sheikh Mohammed bin Rashid, Wadi Al Safa 5, Wadi Al Safa 7, Al Thanyah Fourth and Palm Jumeirah. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay and Al Thanyah Fifth topped the list.

The DLD said it expects the real estate sector to witness continued growth and a greater recovery in the coming months leading to Expo 2020, which “will attract tourists and visitors from around the world and constitute a great opportunity for the real estate sector to strengthen its position regionally and globally”.

According to JLL Mena, a spate of new regulatory measures, local availability of the vaccine, and the upcoming Expo 2020 festivities are reasons and opportunities for the rebound of the real estate market in 2021.

Analysts believe that demand picked up amid “a wave of government reforms over the past 12 months, attractive mortgage rates, and a shift in demand patterns due to Covid-19”.

According to Dubai Statistics Centre data, Dubai’s economy is projected to grow four per cent this year after an estimated 6.2 per cent contraction in 2020. As a key contributor, the realty sector accounts for about eight per cent of Dubai economic output.

Weekly deals hit Dh5B

Meanwhile, realty transactions in Dubai were valued at Dh5 billion this week, with the total at 1,921; 135 five plots were sold for Dh716.18 million, while 1,298 apartments and villas were sold for Dh2.54 billion.

The top three transactions were lands sold in Island 2 for Dh87.5 million, Al Hebiah First for Dh62.5 million and Island 2 for Dh87.5 million.

Al Hebiah Third recorded the most transactions with 35 worth Dh75.96 million, followed by Hadaeq Sheikh Mohammed bin Rashid with 23 worth Dh126.23 million and Al Hebiah Fourth with 20 worth Dh91 million.

The top three transfers for apartments and villas were apartments sold in Marsa Dubai for Dh345 million, Burj Khalifa for Dh280 million and Palm Jumeirah for Dh196 million.

The sum of mortgaged properties was Dh2 billion, with the highest being a land in Al Qusais First mortgaged for Dh276 million. Eighty-four properties were granted between first-degree relatives worth Dh201 million.

— issacjohn@khaleejtimes.com