KHALEEJ TIMES, Monday, Dec 20, 2021 | Jumada Al-Uola 15, 1443
Dubai real estate climbs in 2021
Emirates:
Dubai’s real estate market will post more than 100 per cent growth in the
transaction value this year, as investors reposed trust in the emirate’s
consistent economic policies, successful strategy to handle the Covid-19
pandemic, visa reforms, and the recent liberalisation of the business licensing
regime, experts say.
Analysts, industry specialists, and top executives, said that the emirate is
expected to record property sales transactions worth over Dh150 billion this
year, compared to Dh72.49 billion in 2020.
Referring to the latest data released by the Dubai Land Department, they said
that the emirate has already registered sales transactions worth Dh142.5 billion
through more than 57,500 deals by mid December.
A total of 35,434 transactions worth Dh72.49 billion were registered last year.
Return to healthy growth
Rizwan Sajan, founder and chairman of Danube Group, said that the real estate
sector in Dubai saw one of the best years in its history in 2021. It was not
only the year of full recovery from the Covid-19 pandemic, but also a year of
return to healthy and sustained growth.
“The fast recovery from the pandemic, and healthy growth, reflects the long-term
sustainability of the real estate sector of Dubai, and also shows its degree of
maturity. The question one would ask is how can an industry record such a high
growth in one year?” Sajan told Khaleej Times.
“Dubai’s unique advantages – quality of life, safety, security, world-class
infrastructure, international connectivity, and the country’s leadership in
combatting the Covid-19 pandemic – have all helped more and more wealthy people
to consider Dubai for investment and relocation. The recent liberalisation of
the business licensing regime, and immigration reforms, have further shown the
UAE’s strong drive to attract investors,” he said.
Pandemic management
Sajan also said that the Covid-19 pandemic has demonstrated the UAE’s strong
leadership in managing the pandemic, and creating a safe haven for people –
while the rest of the world was reeling from the crisis.
“The UAE stood as a safe country to live in during the pandemic. As a result, we
have seen how foreign businessmen and professionals started to invest in the
UAE, relocate their families and set up businesses – which helped boost the real
estate sector as well as economic activities,” he said.
“People felt safe in the UAE – in an ‘unsafe’ world. We have seen how Covid-19
has forced repeated lockdowns in different countries with a travel ban, and
restrictions on people’s movement,” he said.
Much-needed boost
Ata Shobeiry, CEO at Zoom Property, said that 2021 certainly gave a much-needed
boost to the property market, after it witnessed a brief sabbatical in the
previous year.
“The second half of the year, in particular, showed tremendous growth. The
effective ways in which the government handled the pandemic, Expo 2020 Dubai,
and new visa reforms, are some of the major reasons that can be accredited for
the powerful performance of the property market in 2021,” Shobeiry told Khaleej
Times.
David Abood, partner at real estate consultancy, Core, said that 2021 has been a
‘historic year’ for Dubai real estate, with the highest-ever quarterly
transaction volumes recorded over the last few quarters.
“The secondary market has led the recovery, signalling a strong local/resident
demand, while the off-plan market has also followed through with a rise in
transaction activity, albeit at a slower pace,” Abood explained.
He added that multiple demand drivers have accelerated real estate recovery,
including the transition to normalcy with robust public health and safety
measures, a high vaccination rate, a raft of social reforms, Expo 2020-driven
demand across sectors, along with easier access to finance.
Furthermore, he said that most traditional source markets have faced prolonged
lockdowns and relatively slower Covid-19 mitigation efforts, resulting in many
international businesses and occupiers moving to Dubai due to its cemented
position as a safe, open, and resilient city, resulting in a rise in inward
investment.
2022 outlook
Sajan said that the real estate sector’s outlook is bright due to the unique
strength of the country.
“The real estate will continue to attract investment – as more and more people
will be relocating to the UAE,” he said.
“The recent announcements by the UAE government – and those that will be made in
the next few months – will create new economic opportunities for people. New
businesses will flourish, and new jobs will be created, that will drive domestic
demand. Therefore, the real estate sector will continue to grow,” he said.
Shobeiry of Zoom Property said the year 2022 looks even more promising.
“Even though Expo 2020 will drop the curtains in March, we can expect the market
to continue its performance. The transition of the expo site into an integrated
mixed-use community ‘District 2020’ will play a strong role in driving the
market,” he said.
Abood of Core also said that the residential market is expected to sustain a
strong recovery next year.
“While we expect the residential market in Dubai to continue improving in 2022,
it is important to note that market recovery is expected to be segmented. Villa
districts and most of the prime apartment locations are expected to continue
witnessing a faster pace of recovery, while most affordable and outer apartment
districts with ample existing stock are expected to see slower stablisation
rates,” he said.
He also said that transaction volumes are expected to remain high over the first
half of 2022 and then gradually stabilise over the second half of 2022.