Dubai Property Market Shows Optimism In 2021 Despite Pandemic

Luxury Properties

2021 proved to be an exceptional year for Dubai real estate sector – supported by results, numbers and the spike in demand during December. It is not wrong to state that 2021 was one of the strongest years, when the Dubai property sector made a huge recovery, in terms of numbers of transactions and monthly index numbers.

2009 was a record-breaking year…

If you are a savvy real estate investor or an expert, you must know that 2009 was the most glorious year for Dubai real estate market. Setting the highest sales record in real estate worth AED155 billion, 2009 proved to be a glorious year for Dubai.

2021 was another successful year…

Owing to the return of international investors back to Dubai and property buyers escalating interest in Dubai properties helped Dubai witness the strongest year in terms of transactions, since 2009. According to the official report released by the Dubai Land Department (DLD), a total of 84,772 transactions have been recorded in Dubai, worth around AED300 billion. While comparing to 2020 statistics, the number of transactions shows 65 per cent growth, while the value of deals represents 71 per cent increase.

59.6 per cent of all the transactions were recorded for secondary/ ready to move in properties while 40.4 per cent were for off-plan properties. If we further break down the numbers, we will get to know that 24,761 off-plan property transactions, worth AED45.5 billion were recorded and the secondary or ready property transactions were 36,480, worth AED105.56 billion. This is the highest secondary market sales transaction, since 2009.

What does the rise indicate?

Increasing rent of residential properties in Dubai and end-users’ growing confidence in the Dubai real estate market are the biggest factors driving the property sales up. With maximum property deals being done for ready to move homes or secondary market, it sets the trend that people are returning to Dubai and considering it for a long-term stay.

Dubai Land Department

Transactions recorded in Q4-2021…

In Q4 of 2021, a total of 17,942 transactions were recorded, worth AED46.75 billion. Upon further research, we get to know that out of all these transactions, 55.9 per cent of all the transactions were for ready properties and 44.1 per cent of the total transactions were for off-plan property units.

A total of 10,029 ready properties were sold worth AED29.82 billion, while 7,913 properties were off-plan properties, which were worth AED16.92 billion.

Note: It indicates that Expo 2020 (which began on October 1, 2021 and will end on March 31, 2022) has been playing a significant role in bringing potential investors back to the market. Around 18,000 property transactions were recorded, which is the highest in terms of numbers and value Dubai real estate market has recorded during a quarter in more than 8 years.

 

Luxury properties are in higher demand…

If we look at the luxury property market, investors’ sentiments are strong due to buyers’ protection laws and rewards in terms of higher returns on investment. Moreover, demand for luxury properties in Dubai is also high but the supply is shrinking and not enough to meet the demand, which led to an increase in prices.

Seeing the hike in prices, the real estate experts are of the view that prices will continue to rise and most likely, the same trend will continue at least in the first half of 2022.

Luxury property prices are increased by 42 per cent in Q4-2021, compared to high-end property prices with Q3-2021. On average, property prices touched AED4.5 million because prime properties are in higher demand for a long, despite COVID-19 uncertainties, challenges, and market slowdown.

When it comes to the number of transactions, Dubai prime residential market witnessed a surge of 5.27 per cent in Q4-2021, at AED17.07 billion.

For prime residential properties, the favourite areas that showed the highest growth in sales in Al Barari area, followed by Jumeirah and Arabian Ranches.

Conclusion

The global pandemic has bottomed out several economic sectors, but the Dubai property market has made a strong comeback based on improved investors’ sentiments, Expo 2020, and increased demand for Dubai properties. The Q4-2021 concluded on a positive note, with record-high sales in terms of volume and value, both.

If you are planning to be a part of this market, you must work with a reliable team and to reach one, you can contact the team HFRE +971 4876 2473 or write us at info@hfre.ae and one of our team members will get back to you with the best investment plan and list of verified properties across Dubai.

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