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Dubai real estate sector sets sight on attracting more new 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 per cent 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 a 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 14,684 transactions in the same period of 2020. The data showed that sales recorded an annual growth of 16 per cent 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 per cent 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 per cent 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 the 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 recover 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 a 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.

Al-Zarouni said that the real estate sector will also 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. “Such decisions enhance the purchasing power of real estate as the targeted groups seek settlement in the country, raise the value of foreign investments inflows, and help create new jobs.”

Al-Zarouni said that the emirate of Dubai provides qualitative facilities to attract local, Arab and foreign investors, as it has decided to reform the Commercial Companies Law and cancel the requirement that some local companies have an Emirati shareholder and allow foreigners 100 per cent ownership in 122 commercial activities. This is expected to boost foreign direct investment in the UAE in general and the real estate sector in particular.

Al-Zarouni also said that the risks of the pandemic diverted attention towards obtaining independent and larger living spaces, whereas the remote work policies reinforced the tendency to acquire larger homes suitable for living and working together. He expects those policies to continue after the pandemic. He also said that the decrease in the number of new projects helps to reduce the real estate supply amid the growth in demand, which supports the growth of prices to satisfactory levels, and increases the attractiveness of domestic and foreign investment.

Also, UAE banks have introduced a reduction in interest rates on mortgage loans, which 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. Lastly, Dubai’s reserved its position as the best financial and business destination in the Gulf region. This is helping to increase the demand for offices and boost the turnout, thanks to the speed of vaccination campaigns.

Source: https://www.khaleejtimes.com/business/real-estate/dubai-real-estate-sector-sets-sight-on-attracting-more-new-investors

Dubai: Supply of new residential units stays strong in Q1 at 10,500

Supply of new residential units in Dubai is going strong even during the Covid-19 pandemic with nearly 10,500 residential units handed over in Dubai during the first quarter 2021.

According to a study by real estate consultancy Core, an additional 26,500 units are expected to be handed over in the remainder of the year, taking total annual forecast for 2021 at over 37,000 units.

Prathyusha Gurrapu, head of research and advisory at Core, said despite the initial period of uncertainty and contrary to wider held beliefs this time last year, the UAE real estate sector and the overall economy have fared impressively well, thanks to robust government measures, fiscal incentives, social reforms and one of the highest rates of vaccinations globally.

“Dubai’s successful demonstration of mitigating Covid-19 and being open, relatively safer and connected is supporting new and existing businesses and providing comfort to end-users and investors, resulting in a rise in market activity across all sectors, particularly over Q1 2021,” said Gurrapu.

Transactions

She said there has been a 64 per cent increase in secondary market transaction activity over Q1 2021 compared to Q1 2020.

Looking into the data closely, the villa market significantly outperformed with a spike of over 137 per cent, while apartments saw over a 41 per cent increase in secondary market transaction activity over Q1 2021 compared to Q1 2020. On the other hand, off-plan market activity continues to face headwinds, contracting by 29 per cent over the same period.

“Despite Covid-19 led market challenges, we are seeing a robust increase in residential secondary sales transactions in Q1 2021. A multitude of demand drivers are resulting in this increase, including competitive entry points, variety of options, change in loan-to-value ratios, low interest rates, visa reforms, an economic environment of safety and openness and the need for occupiers to upgrade residences to accommodate Covid led lifestyle changes,” she said.

Gurrapu pointed out that the market is seeing stabilisation in average villa sales values with prices showing sustained marginal upticks for the first time since 2014.

Rents

Gurrapu said the polarised sales performance between apartment and villa districts is being mirrored in the rental market. A slow yet steady uptick in villa rental values can be seen from Q4 2020, although the year-on-year values are still down two per cent.

“The prime villa districts of Palm Jumeirah and Emirates Hills buck the trend with 12 per cent and 11 per cent year-on-year increases while the affordable districts of Jumeirah Village Circle and Dubailand saw the sharpest decline in rents at -11 per cent and -9 per cent respectively. The trend of widespread rental contraction- in apartment districts lingers on with most districts witnessing sharp double-digit year on year declines,” she added.

 

Source: https://www.khaleejtimes.com/business/dubai-supply-of-new-residential-units-stays-strong-in-q1-at-10500

Property buyers outnumbering sellers in Dubai

People prepared to pay more because there is a lack of stock, and it’s becoming a trend.

Dubai’s property market is running low on inventory as buyers currently outnumber sellers in popular areas of the emirate.

A study by global real estate consultancy Colliers said that due to the consistently high numbers of buyers, the market has seen a transition into a seller’s market.

“The majority of participants in our survey agreed that currently the quantity of buyers registered outweighs the supply in popular areas within Dubai, as agents informed Colliers they are currently running low on inventory. It is thought that one of the reasons for this is the ‘need to sell’, with owners that had to liquidate their assets having already done so and the remaining owners impartial to sell, but depending on the right price,” Colliers said in its first-quarter report.

Since the establishment of the Dubai Supreme Committee for Real Estate Planning in September 2019, new project launches have slowed down substantially. Though supply of new units from previously-launched projects is still coming onstream, low property prices and interest rates are attracting buyers in good numbers.

According to Asteco, 34,000 apartments and villas were handed over in 2020.

“What we are increasingly seeing is people prepared to pay more because there is a lack of stock, and properties which are vacant on transfer rather than let are obtaining the largest premiums. This has led to bidding wars, gazumping and constant increasing owner demands. Ninety per cent of participants agreed that the current level of pricing and price increases have far outweighed expectation and some believe this sharp increase and demand is verging into uneasy territory,” said the survey.

It said unreasonable owners’ expectations and a still strong demand from buyers can cause a stalemate. This has also led to many investors looking at entering the market and overpaying.

“A staggering 80 per cent of participants also acknowledged that currently, many properties are being sold off market with the risk of advertising a property too high due to the increasing competition between agents trying to obtain inventory,” said the report.

Who buys, and why?

Colliers’ survey results revealed that 57 per cent saw an increase in investor activity and a further 70 per cent had noticed increased foreign investment into the market, with the three most popular nationalities being from Chinese, European and Indian investors.

“Many believe a key driver to the increase in market activity is the way in which the UAE has handled the global pandemic, this has given people a strong sense of security and remains a key influencer to the decision making process of wanting to buy. It is still agreed that the majority of buyers are financed in some way, with some higher end purchasers also taking a small proportion of finance,” it said.

In addition, the market is seeing an increasing number of tenants looking to invest in property for themselves as the rent / mortgage payment gap is still favourable to ownership.

Atif Rahman, director and partner of Danube Properties, as he had stated earlier, said there will never be a perfect equilibrium between demand and supply.

“There could be a temporary balance but largely, either the supply or demand would be on the higher side. This is what leads to inflation or deflation in the real estate value. I want to reiterate that the risk of oversupply looms in every market across the globe, however, there will never be oversupply of good properties,” Rahman said.

“In the current situation, we do see a reasonable spike in the demand which will be good enough to consume the current supply of the real estate in the Dubai real estate market.”

Source: https://www.khaleejtimes.com/business/real-estate/property-buyers-outnumbering-sellers-in-dubai

Big upswing in Dubai realty sales

According to realty experts, the residential property market has been buoyant and it most likely to continue on this track for this year

Dubai’s real estate sector continued to show buoyancy in March 2021 by registering a big upswing in sales transactions to 4,643 worth Dh10.93 billion.

According to realty experts, the residential property market has been buoyant and it most likely to continue on this track for this year.

“Investors and end-users are buying properties across the spectrum, from affordable apartments to luxury villas. The popular, prime areas will continue to see activity and prices will most likely continue to rise in these areas due to lack of supply and high demand,” said Lynnette Abad Sacchetto, director of Research & Data.

Compared to February, March data represents a 22 per cent surge in terms of volume and 47 per cent more in terms of value, according to Data Finder, the real estate insights and data platform under the Property Finder Group.

March 2021 also had the highest number of secondary/ready properties transacted in a single month since June 2015, it said.

In the first quarter 2021, the sector recorded 11,757 transactions worth Dh25.15 billion.

“In total, Q1 2021 had 6.0 per cent more real estate transactions than Q4 2020, 16 per cent more transactions for secondary properties and 7.0 per cent less transactions for off-plan properties,” said the Data Finder report.

When compared to Q1 2020, Q1 2021 had 15 per cent more total transactions, 70 per cent more transactions for secondary properties and 29 per cent less transactions for off-plan properties.

The first quarter 2021 has shown a significant growth in sales transaction compared to the first quarter of the previous two years. While in 2020, considered an abnormal pandemic year, 10,101 sales transactions worth a total of Dh21.33 billion were recorded, in the same period 2019, there were 8,874 sales transactions with a total of Dh20.022 billion, additional data from Property Finder shows.

Sacchetto said the increase in the number of transactions for off-plan has been 30 per cent for the past two months which is showing a huge growth in investor sentiment and positive market outlook. “We have seen developers launch new phases within their existing projects, especially in the villa/townhouse segment, which have sold out within hours. People, end users and investors alike, are once again heavily investing in the future of Dubai.”

The average transaction value in Q1 2020 was Dh2.06 million while in Q1 2021 it was Dh2.12 million. In Q1 2019, considered a normal year, it was Dh2.26 million.

“Over the last few months, we have seen prices increase in popular, prime areas due to lack of supply and very high demand while sale prices have stabilized in majority of the areas in Dubai,” said Sacchetto.

“As we have seen in Q1 2021, the average mortgage application has risen to Dh2.0 million compared to the average of Dh1.3 million in Q1 2020, which is partially due to prices increasing along with consumers buying larger ticket properties. In January 2021, we broke all-time records for the amount of mortgages by two times. We are most likely going to see the mortgage market continue strong due to the lower LTV for first time home buyers, competitive offers and the lowest interest rates ever offered,” Sacchetto said.

“This increase in loan amount is due to a number of factors, including the increase in property prices seen in some more established communities, buyers continuing to opt for villa purchases or larger properties in general and also the 5.0 per cent increase in loan-to-values making it possible for first time buyers to borrow more,” explained Warren Philliskirk, director at Mortgage Finder.

The market will also most likely continue to see an increase in appetite for the off-plan sector as developers launch new phases within existing projects, especially in the villa/townhouse segment.

In March, 63 per cent of all transactions were for secondary/ready properties and 37 per cent were for off-plan properties. “When we look at the volume of transactions, the off-plan market transacted 1,713 properties worth a total of Dh2.91 billion and the secondary market transacted 2,930 properties worth a total of Dh8.02 billion,” said Sacchetto.

The number of off-plan transactions in March increased by 37 per cent while the secondary/ready property transactions increased by 16 per cent compared to February.

An interesting factor is that the average transaction value for off-plan properties has increased month-on-month by 24.6 per cent and for secondary properties it increased by 21.5 per cent. The total value of off-plan properties when comparing March 2021 to February 2021 has increased by 70 per cent and secondary properties have increased by 41 per cent, said the report.

In the villas/townhouses sector, 11.5 per cent of all sales in March 2021 took place in Mohammed bin Rashid City, followed by Tilal Al Ghaf (10.1 per cent), Dubai Hills Estate (9.9 percent), Nad Al Sheba (8.2 percent) and Rukan (5.8 percent). Looking at apartments, 10.7 per cent of all sales transactions took place in Business Bay followed by Dubai Marina (9.3 per cent), Jumeirah Village Circle (8.0 per cent), Jumeirah Lakes Towers (7.6 per cent) and Palm Jumeirah (7.2 per cent).

The top areas of interest in terms of searches for villas/townhouses in March 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.

Source: https://www.khaleejtimes.com/business/real-estate/big-upswing-in-dubai-realty-sales

Dubai realty turning into seller’s market?

Buyers signing on dotted line a lot quicker than they previously would have on fear of missing out on a property they like

Is Dubai’s realty sector making a dramatic transition to a seller’s market despite the lingering headwinds of the pandemic-induced economic slowdown? Property pundits say they are witnessing such a shift with the ratio of buyer enquiries far outstripping new supply.

“Ready properties of high-quality finishes that are kept well are in high demand and with so much competition from buyers at the moment, we are seeing undersupply issues leading to property price increases,” property consultancy company Allsopp & Allsopp says.

Dubai is in the midst of a seller’s market with Allsopp & Allsopp’s current ratio of buyer enquiries to new property listings at 8:1.

“Buyers don’t have a lot of options in the market and urgency is being shown as prices are on the increase and have been doing so for the last few months. They are signing on the dotted line a lot quicker than they previously would have through fear of missing out on a property they like,” an analyst at Allsopp & Allsopp said in a report.

“If you go back a year-and-a-half, we were trying to convince buyers to look at properties as Dubai was in a buyers’ market. They weren’t keen to view as there was so much supply and with the supply comes less urgency. If a property they like was sold, they would simply find another similar property. However, we are now seeing multiple buyers for one property as there is little supply therefore creating urgency, and at times, driving the price upwards by means of outbidding each other,” CEO Lewis Allsopp added.

The company claims that it has a waiting list of buyers for certain properties — meaning that those properties in high demand are selling before they reach property portals such as houza.com, a newly-launched broker-owned property portal.

“What we are seeing is that buyers are contacting agencies to find out what is becoming available. They are not waiting for properties to go live online. This is an encouraging sign for the Dubai property market and shows its maturity despite a global pandemic,” he said.

It claims that it has a waiting list of buyers for certain properties — meaning that those properties in high demand are selling before they reach property portals such as houza.com, a newly-launched broker-owned property portal.

“What we are seeing is that buyers are contacting agencies to find out what is becoming available. They are not waiting for properties to go live online. This is an encouraging sign for the Dubai property market and shows its maturity despite a global pandemic,” he said.

The real estate brokerage reported record-breaking revenue generation for January 2021 when compared to any other month in the company’s 13-year history. The loan-to-value (LTV) ratio and low-interest rates are a common denominator when it comes to buyers having the ability to step onto the property ladder. “First-time buyers make up 74 per cent of our business at the moment due to the government stimulus package increasing the LTV and lowering interest rates — it has never been a more affordable time to buy,” says Allsopp.

For example, in 2019 a property could be worth Dh2.5 million with a down payment of 33 per cent at Dh800,000, but during the second half of 2020 and going into 2021, the same property could be purchased for Dh1.9 million with a down payment of 26 per cent at Dh400,000.

Not only is it a lot cheaper, but clients are also paying less in upfront costs, he explained.

He said end-user buyers would consider paying more if they find a property that they like. “Some are holding off on buying cheaper units and placing themselves on waiting lists hoping for the right property to become available and are willing to stretch their budget to the max.”

The brokerage reported that the average sales price has risen in a number of areas across the city. For a Type 2M villa in the Springs, the sold price rose from Dh1.82 million in April 2020 to Dh1.975 million in September 2020 to Dh2.475 million in January 2021. For Victory Heights, a Type B villa’s sold price in May 2020 was Dh4.1 million compared to Dh4.8 million in August 2020 and Dh5.1 in December 2020.

 

Source: https://www.khaleejtimes.com/business/real-estate/20210313/dubai-realty-turning-into-sellers-market

Dubai housing sector posts 7-year high monthly deals

Transactions in February were 15.6 per cent more than the previous month in terms of volume and 10.2 per cent more in terms of value

The Dubai residential sector recorded 3,814 transactions worth Dh7.43 billion in February 2021. The month also recorded the highest number of secondary/ready properties transacted in a single month since March 2014, according to Data Finder.

Transactions in February were15.6 per cent more than the previous month in terms of volume and 10.2 per cent more in terms of value. This brings the year-to-date total to 7,109 transactions worth Dh14.16 billion, according to the data platform under the Property Finder group.

“During the pandemic it was very clear in the search and demand data, which we analyse daily, that consumers wanted to move into a property now and not wait for construction to be completed on an off-plan property. This trend was very apparent with end users who were looking to either purchase their first home in Dubai or upgrade to a larger property with more internal and external space ” says Lynnette Abad, director of Research & Data at Data Finder.

In H2 2020, volume of transactions in secondary/ready properties was higher versus off-plan properties. This trend also continued into 2021 and the confidence in the ready market continued to grow as February 2021 now holds the record for most secondary/ready properties in a single month over the past seven years, surpassing January’s numbers, Data Finder said.

According to Asteco’s Q4 2020 UAE Real Estate Report, the real estate sector has shown an unexpected level of resilience in the face of serious challenges created by the pandemic. However, the supply-demand imbalance is likely to worsen over the course of 2021, similar to last year. In Dubai, 41,500 new residential units and 1.5 million sqft of office space are expected for handover in 2021, a figure that could possibly increase if currently stalled/on hold projects resume activity.

In February, 68 per cent of all transactions were for secondary/ready properties and 32 per cent were for off-plan properties. “When we look at the volume of transactions, the off-plan market transacted 1,163 properties worth a total of Dh1.61 billion and the secondary market transacted 2,650 properties worth a total of Dh5.82 billion. Comparing this to January 2021, the number of off-plan transactions in February increased by 35.8 per cent and the secondary/ready property transactions increased by 8.2 per cent,” said the report by Data Finder.

“Since restrictions have eased and as we moved into a new year, we started to see developers launch new phases to existing projects which are under construction. These new launches, especially in the villa/townhouse segment, proved to be very popular with investors over the last few months,” Abad said.

In the villas/townhouses sector, 10.3 per cent of all sales in February 2021 took place in Nad Al Sheba, followed by Dubai Hills Estate (8.3 per cent), Green Community (8.0 per cent), Arabian Ranches (4.7 per cent) and Dubailand (4.0 per cent). Looking at apartments, 14.9 per cent of all sales transactions took place in Business Bay followed by Dubai Marina(9.0 per cent), Jumeirah Village Circle (8.0 per cent), Downtown Dubai (6.5 per cent) and Palm Jumeirah (6.2 per cent).

The top areas of interest in terms of searches for villas/townhouses in February 2021 were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Mohamed bin Rashid City and Damac Hills. As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle, according to proprietary Property finder demand data.

Source: https://www.khaleejtimes.com/business/real-estate/dubai-housing-sector-posts-7-year-high-monthly-deals

Dubai’s real estate market saw deals worth Dh6.7 billion in January

Dubai’s real estate market saw deals worth Dh6.74 billion in January, 2021 – this is up 37 per cent from the same period last year.

 

Dubai: Dubai’s real estate market saw deals worth Dh6.74 billion in January, 2021 – this is up 37 per cent from the same period last year, according to a sales price index launched by the Dubai Land Department (DLD).

“The index data shows that Dubai’s real estate market continues its upwards trend – this is due to the proactive measures and incentive packages launched by the Dubai Government to address the effects and consequences of the outbreak of COVID-19,” the regulator said in a statement.

Customers want it ready

The trend throughout 2020 was that secondary or ready properties started transacting more, and this trend has continued into this new year.

DLD noted that 72 per cent of all transactions in January 2021 were for secondary or ready properties, and 28 per cent were for off-plan properties.

In terms of the volume of transactions, the secondary market transacted 2,373 properties worth a total of Dh5.43 billion – this is the highest in a single month since March, 2014.

Strong quarter

The fourth quarter of 2020 was the “strongest” quarter of the year with over 11,000 transactions worth Dh22.07 billion.

“This quarter kept the momentum going for the year to start strong, and we are most likely going to see this going forward into February, where we have already seen more than AED 3.3 billion in sales transactions in the first week,” said the statement.

Source: https://gulfnews.com/business/property/dubais-real-estate-market-saw-deals-worth-dh67-billion-in-january-1.77258802

Emaar Development delivers property sales of Dh6.308b

Developer Emaar Properties reported on Sunday a nearly 58 per cent drop in net profit to Dh2.6 billion in 2020 as against a profit of Dh6.2 billion in 2019, and said it saw “a world of opportunities” in 2021.

The developer of Burj Khalifa, the world’s tallest structure, said in a statement that its revenues plunged 20 per cent in 2020 to Dh19.71 billion from Dh24.59 billion a year earlier.

Emaar’s overall property sales during 2020 stood at Dh10.9 billion, of which Dh6.3 billion was recorded in the UAE. “The performance shows sustained interest from investors, both domestic and foreign,” it said.

The master developer’s sales backlog stood at Dh36.7 billion, of which Dh24.7 billion comprises of the backlog in the UAE, which would be recognised as revenue in the coming years.

Mohamed Alabbar, the founder of Emaar, said the performance in 2020 was a direct result of the company’s ability to move quickly, adapt to new business conditions and utilise its existing resources to access new opportunities. “We continue to embrace technology to help grow our business, while at the same time closely adhere to the cost discipline that helps us achieve better results in each quarter.”

“Looking ahead to 2021, we see a world of opportunities — both traditional and tech-driven — that will help us grow in ways and in markets that didn’t exist five or ten years ago,” Alabbar said.

Emaar Development, Emaar’s build-to-sell real estate business in the UAE, reported a net profit of Dh1.7 billion as revenue stood at Dh9.8 billion.

The developer said its delivery track record as of December 2020 includes more than 47,000 residential units in Dubai and, including other international markets. Emaar has delivered over 72,100 residential units. Meanwhile, over 26,000 residences are currently being developed in the UAE, alongside 12,000 units across international markets.

“Despite the challenges of the pandemic, we remained focused on progressing at great speed with all of our projects during 2020. The progress underlines Emaar Development’s commitment to delivering the hi,” said Alabbar.

“Our proven agility allowed us to achieve robust results in the second half of the year. We expect this vigorous trend to continue in the year ahead, supported by our best-in-class projects,” he added.

On the other hand, the group’s international property development arm recorded a 10 per cent increase in revenue to Dh4.8 billion for 2020 compared to 2019.

The international development business contributed 24 per cent to Emaar’s total revenue and results were strengthened by continued successful operations in Egypt and Pakistan.

 

Source: https://www.khaleejtimes.com/business/local/emaar-development-delivers-property-sales-of-dh6308b

Dubai prime house market records Dh29.5b deals in 2020

The top three areas in terms of sales volume were MBR City, Downtown Dubai, and Palm Jumeirah

Dubai’s prime residential market recorded Dh29.54 billion worth of transactions in 2020 notwithstanding the challenges posed by the pandemic.

Last year, transactions of more than 10,557 apartments and 1,512 villas were recorded in Dubai’s prime residential market. Fourth-quarter was the best performing quarter, registering Dh9.2 billion in terms of sales volume, according to analysis by Luxhabitat Sotheby’s, based on data from the Dubai Land Department.

There has also been a 5.0 per cent correction in price per sqft across the prime residential market from Dh1,327 to Dh1,193, thereby indicating a strong surge in buyer activity, Luxhabitat said in a report.

The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers and Palm Jumeirah.

The top three areas in terms of sales volume were MBR City (Dh6.4 billion), Downtown Dubai (Dh5.1 billion) and Palm Jumeirah (Dh3.5 billion). The Jumeirah Beach Residence area showed the highest growth of sales at Dh1.8 billion (five times higher than 2019), followed by Jumeirah (four times growth in sales at Dh 651 million) and Jumeirah Islands (two-fold growth in sales at Dh284 million).

“2020 proved the global stature of Luxhabitat Sotheby’s International Realty. During a year filled with economic uncertainty, we closed the year with over 1 billion AED worth of sales transactions,” said Chris Whitehead, managing partner at the firm.

“We strongly believe that Dubai will play a key role in the post-pandemic scenario as well for how it has handled the pandemic issue on a global level while keeping the economy open. And 2021 will be a bigger, better year for us as well the Dubai property market,” said Whitehead.

In 2021, Dubai’s residential sector is expected to add 39,000 units following a surge in the supply in 2020, according to other surveys.

Last year, the overall residential market saw the delivery of nearly 36,000 units, marking an increase over the number of units that were added to the market in the previous year, according to data supplied by real estate consultancy Core.

Data from Asteco also shows that 2019 saw a total of 31,000 residential units coming into the market in Dubai in 2019, comprising approximately 23,600 apartments and 7,400 villas. According to Data Finder, a total of 32,822 residential units in the freehold and non-freehold communities were completed in Dubai in the first nine months of 2019 and another 13,216 units have a completion date towards the end of 2019 or Q1 2020.

In 2020, the prime villa market remained stable with an average price of Dh6.3 million, about 3.0 per cent higher than the previous year – indicating that buyers were keen to purchase villas in 2020. The affordability factor has increased and the trend observed was that people were opting to buy homes with larger spaces. Across all areas, there was an average of 1,000 square feet increase in the size of the villas transacted – making the average built-up-area of a prime villa 5,981 sqft.

Prime apartments also remained stable with minimal to no price correction at Dh 1,404 per square foot. The average prime apartment now costs approximately Dh1.8 million for a unit spanning 1,698 sqft in built-up-area.

According to the report, half the most expensive transactions in 2020 are from MBR City – Dubai Hills and District One developments form part of the area. Emirates Hills continued to hold a place among the most expensive villas in Dubai.

Source: https://www.khaleejtimes.com/business/real-estate/dubai-prime-house-market-records-dh295b-deals-in-2020

Surging investor confidence lifts Dubai real estate in 2020

In December, Dubai recorded 3,751 transactions worth Dh7.50 billion, the 10th edition of Mo’asher, Dubai’s official sales price index launched by DLD in cooperation with Property Finder, shows

A spike in property transactions in December lifted Dubai’s annual real estate deals in 2020 to 35,400 with a value of Dh72.47 billion, according to Dubai Land Department (DLD) data.

 

In December, Dubai recorded 3,751 transactions worth Dh7.50 billion, the 10th edition of Mo’asher, Dubai’s official sales price index launched by DLD in cooperation with Property Finder, shows.

“This data confirms the strength of the real estate sector in particular and the macroeconomics of Dubai and the UAE in general. This has strengthened investor confidence and contributed to the effective return of activity to the sector, specifically over the past three months,” said Latifa Ibrahim Ahmed, director of the Real Estate Studies & Research Department at DLD.

The successful strategy to recover from Covid-19 enabled the UAE to have a gradual return, resulting in a complete re-opening of various sectors. The December data signals the start of the recovery that will gain more momentum on the back of the gradual opening of global markets and upcoming Expo 2020 Dubai, the globally-awaited event, said Latifa.

The last few months in 2020 have been record-breaking for the secondary/ready market, with November and December both breaking the secondary/ready market sales transactions records for the past seven years. December 2020 had 2,579 secondary/ready transactions worth Dh6.22 billion, 9.7 per cent more than November 2020, which was already a record-breaking month for the secondary/ready market.

“We have been headed towards a V-shaped recovery, and when we look at the numbers, from the lowest numbers we had in May (1,452 transactions), the market had recovered by almost 270 per cent,” said the report.

Fourth quarter was the strongest in 2020 and helped the year recover most in terms of volume and value through 11,064 sales transactions worth Dh22.07 billion.

In 2020, a total 12,958 transactions worth Dh87.20 billion were registered. Almost 100 per cent of these were for secondary/ready property. “This increased shift in ready property is something we have seen throughout the year as residents are now opting to buy a place to live in rather than rent.”

Lynnette Abad, director of Research and Data at Property Finder, said 2020 was interesting, to say the least. “When it comes to residential real estate, we at Property Finder predicted pent-up demand from the outset; we knew this was something that was going to impact the market. There was a significant rebound in the real estate market after restrictions eased, and people wanted to improve their home lifestyle. With attractive housing prices and the lowest mortgage rates we have ever seen, it was inevitable.”

According to the latest research by real estate services firm, Chestertons, Dubai’s residential sector enjoyed a comparatively strong second half of 2020, supported by an increase in completed property sales and continued tenant demand across more-established villa communities.

The findings show that while the total value of residential property sales fell by almost 14 per cent over 2020 to Dh55.46 billion from Dh64.34 billion in 2019, completed property sales gained pace over the second half of last year, reaching Dh21.67 billion, a 35.5 per cent increase from Dh15.99 billion seen in H2 2019.

 

Source: https://www.khaleejtimes.com/business/surging-investor-confidence-lifts-dubai-real-estate-in-2020

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