Dubai Real Estate Sector, Sets as An Electret for More New Investors
- Increased 44 % on an annual basis during the first quarter of 2021 and there are some factors that have contributed to the growth of the value of real estate transactions in Dubai.
- Growth in real estate transactions value to AED 68.6 billion in the months January to March of this year, as there were 18.526 transactions.
- Real estate transactions as AED 47.7 billion, compared 14,684 transactions in the same period of 2020.
- Sales recorded an annual growth of 16 % reaching AED 24.8 billion, through 11,658 deals, while the value of mortgages during the same period amounted to about AED 39.5 billion, with an annual growth of 76 % with 8,091 deals.
- Real estate donations reached AED 4.8 billion, with 828 deals during the first quarter of this year.
- Ready real estate share of sales was the largest at 80 %, equivalent to AED 19.8 billion, compared to 20 % of off-plan sales at a total value of AED 4.9 billion.
- Sheikh Mohammed bin Rashid Gardens followed by Wadi Al-Safa 5, Wadi Al-Safa 7, Nad Al Sheba 1, and Al Thanayah Fourth, ranked the best of the five areas in terms of sales value for apartments and villas during the first quarter of 2021.
- Lead came as follows: Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Merkad with regard to the apartment category.
Boosted Direct Demand for Real Estate
1. Sales recovery reflects optimism during 2021
2. Investment incentives provided by the emirate authorities & government initiatives in support of population growth.
3. Dubai Urban Plan 2040, aims at making the Dubai the best place in the world for living and working.
Dubai Urban Plan 2040
- Plan focuses on achieving a global development model.
- Supporting the well-being of society, empowering & motivating people.
Widespread Covid-19 Vaccination Centres
Covid-19 Vaccination Centres in the UAE are a key driver of Dubaiâ€™s real estate sectorâ€™s recover in the first quarter of this year.
New Demand for the Sector
- Amendment of provisions related to the executive regulations of the Federal Law regarding nationality and passports.
- Granting of Emirati nationality to investors, professionals, talents and their families, based on a number of terms and conditions.
- Qualitative shift for the real estate sector.
- Creates a new demand for the sector that decrease supply and paves the way for launching new projects.
Hosting the Dubai Expo 2020 & Spending to Develop Infrastructure Projects
- Enhance the demand for rent in the emirate
- Boost investment in the real estate sector in the coming years.
- Estimated the added value in the post-Expo period to be at AED 62.2 billion until December 2031.
Granting Golden Residency to Residents
1. Real estate sector will benefit from the approval of granting golden residency to residents for a period of 10 years for several categories, most notably those with doctoral degrees, all doctors, and engineers in the fields of computer engineering, electronics, programming, electricity and biotechnology.
2. The above decisions enhance:
- Purchasing power of real estate as the targeted groups seek settlement in the country.
- Raise the value of foreign investments inflows.
- Help create new jobs.
1. Emirate of Dubai provides qualitative facilities to attract local, Arab and foreign investors.
2. Decided to reform the Commercial Companies Law and cancel the requirement that some local companies have an Emirati shareholder.
3. Allow foreigners 100 % ownership in 122 commercial activities.
4. Boost foreign direct investment in the UAE in general and the real estate sector in particular.
- Covid-19 Pandemic diverted attention towards obtaining independent and larger living spaces.
- Remote work policies reinforced the tendency to acquire larger homes suitable for living and working together.
- Decrease in the number of new projects helps to reduce the real estate supply amid the growth in demand.
- Supports the growth of prices to satisfactory levels, and increases the attractiveness of domestic and foreign investment.
Thanks to the Speed of Vaccination Campaigns & Reduction in Interest Rates
- UAE banks established a reduction in interest rates on mortgage loans.
- Encourages people to buy residential units instead of renting, at a time when prices have reached levels that make investing in real estate in Dubai a good opportunity.
- Dubai's reserved its position as the best financial and business destination in the Gulf region.
- Helping to increase the demand for offices and boost the turnout.