Dubai Real Estate Attracting Investors
There are nine main supporting factors that have contributed to the growth of the value of real estate transactions in Dubai during the first quarter of 2021, increasing 44 percent on an annual basis, according to the chairman of brokerage W Capital.
According to Walid Al Zarouni, these include a strong Covid-19 vaccination drive, new visa residency laws, and the upcoming Expo 2020 Dubai event.
Al Zarouni revealed that the Dubai Land Department’s data showed growth in real estate transactions value to Dh68.6 billion in the months January to March of this year, as there were 18.526 transactions. The value of real estate transactions was Dh47.7 billion, compared to 14,684 transactions in the same period of 2020. The data showed that sales recorded an annual growth of 16 percent reaching Dh24.8 billion, through 11,658 deals, while the value of mortgages during the same period amounted to about Dh39.5 billion, with an annual growth of 76 percent with 8,091 deals.
In addition, real estate donations reached Dh4.8 billion, with 828 deals during the first quarter of this year. Al-Zarouni pointed out that ready real estate share of sales was the largest at 80 per cent, equivalent to Dh19.8 billion, compared to 20 percent of off-plan sales at a total value of Dh4.9 billion. Sheikh Mohammed bin Rashid Gardens ranked the best of the five areas in terms of sales value for apartments and villas during the first quarter of 2021, followed by Wadi Al-Safa 5, Wadi Al-Safa 7, Nad Al Sheba 1, and Al Thanayah Fourth. With regard to the apartment category, the lead came as follows: Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Merkad, respectively.
Walid Al-Zarouni noted that the sales recovery reflects optimism during 2021, as the investment incentives provided by the emirate authorities and government initiatives in support of population growth, boosted the direct demand for real estate. Al-Zarouni also highlighted the ‘Dubai Urban Plan 2040’, which is aimed at making Dubai the best place in the world for living and working. The plan focuses on achieving a global development model supporting the well-being of society, empowering people, and motivating them.
Al-Zarouni indicated that the widespread Covid-19 vaccination centers in the UAE are a key driver of Dubai’s real estate sector’s recovery in the first quarter of this year. He also said that the amendment of some provisions related to the executive regulations of the Federal Law regarding nationality and passports, through which the granting of Emirati nationality to investors, professionals, talents, and their families, based on a number of terms and conditions, is a qualitative shift for the real estate sector, as it creates new demand for the sector that decrease supply and paves the way for launching new projects.
In addition, he says that there is no doubt that hosting the Dubai Expo 2020 and spending to develop infrastructure projects will enhance the demand for rent in the emirate, as well as boost investment in the real estate sector in the coming years. Research studies estimated the added value in the post-Expo period to be at Dh62.2 billion until December 2031.