KHALEEJ TIMES, Saturday, Jun 19, 2021 | Zul Qaadah 8, 1442
Dubai realty keeps its poise, posts transactions worth Dh11B+
Emirates:
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.
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