Dubai’s Immobilien industry is undergoing an exciting change period. Effective planning has allowed the city to weather the global economic slump and to reinforce its land reforms.
The Dubai real estate market has reached a new record, the highest real estate transactions in the last four years. Mo’asher’s 15th edition of the Dubai Official Sales Price Index (DLD) showed that May 2021 had the most incredible total sales volume of about Dh11.11 billion from March 2017, with a gain of 1.4% compared to last April. The number of property transactions reached 4,429 in May 2021, bringing the total to 20,989 deals worth Dh47,19 billion in the current year.
While the worldwide immovable business was battling for its existence in 2020, the immovable market of Dubai flourished like never before. The quantity of sales transactions documented by the Dubai Land Department was apparent (DLD). The Dubai Land Department produced 51,414 transactions valued at more than Dh 175 billion in 2020, according to its annual transaction report (DLD).
In the first quarter of 2021, there were further reasons to cherish the head honchos for real estate. As property prices and leasing rates have decreased, the sector has seen the most significant number of transactions in the last two years. Let’s look at the performance of Q1 2021:
Dubai Immobilien Sector: Q1 2021
The recent Daily ‘Real Estate Updates Q1 2021’ published by the Dubai Land Department (DLD) emphasizes the sector’s continuing excellent outcomes in Q1 2021. Real estate transactions have been at their highest level since 2017, with 6.590 agreements valued at AED 22,9 trillion, a 43 percent increase in numbers, and a 40 percent increase in value over the year.
Immobilien transactions in Q1 2021 have had a remarkable growth of 27% and 47% compared to Q1 2020 and Q1 2019. The value of property brokerage commissions obtained by active real estate brokers on an immobilized market was AED 392 million in Q1 2021. In contrast, in Q1 2021, there were 143,374 Ejari contracts, of which 57% were new contracts, and 43% were renewed.
Dubai skyscraper is standing high on new investors’ expectations:
The real estate business in Dubai has not lost its attractiveness despite all market worries. The DLD Bulletin for Q1, 2021 indicated that the industry recruited 5,683 new investors or 64% of the total number of investors. The Dubai property market has won the confidence of both local and foreign investors.
Drivers of growth:
The highest motives for global investors, particularly in Europe, India, and North America, to invest in Dubai’s real estate market include the increased covid 19 cases, strict travel restrictions, prolonged lockdown, economic downturn, and massive losses in their businesses due to a lack of demand and job losses. The number of wealthy investors from Britain, Italy, France, and Germany who have purchased Dubai villas and vacation homes has increased enormously because of rising incidences of coronavirus in their respective countries. Dubai’s real estate market received a significant boost from international investors even in the thick of the epidemic in 2020. According to Gulf News data, in 2020, the immovable market in Dubai drew 19,757 foreign investors, which had invested 24,666 billion dh35.6 billion in investment.
The UAE’s immovable sector also has a thriving national leadership in developing business-friendly measures like FDI laws, restoring relations with Qatar, quickest and most effective Covid vaccination drive, digitalization, and lower interest rates. Expo 2020, increase in property buyers’ LTV rates, long-term residence visas, and la. In 2020, Fajar Realty noticed the demand for the property for several of its prominent immovable customers. This affected our business positively last year. Fajar Realty is ready to prosper and increase its customer portfolio in 2021 by banking on a good business climate, government policies, immobilization spending, and increasing international investment.