SEC meet discusses draft laws related to real estate sector
- 25 May 2022
Sheikh Sultan Bin Mohammed Bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, and Chairman of the Sharjah Executive Council, in the presence of Sheikh Abdullah Bin Salem Bin Sultan Al Qasimi, Deputy Ruler of Sharjah and Deputy Chairman of the Council, and Sheikh Sultan Bin Ahmed Bin Sultan Al Qasimi, Deputy Ruler of Sharjah, chaired on Wednesday, the meeting of the Council at the Ruler’s Office.
During SEC’s meeting, various governmental issues were discussed to develop the government’s workflow and advance all sectors in the Emirate of Sharjah.
The Council discussed a number of draft laws and decisions related to the real estate sector and the regulation of its rental relations, which included a draft law on renting real estate in the Emirate of Sharjah, and a draft law on the establishment and organisation of a rental dispute centre in the Emirate of Sharjah.
The meeting also included a discussion of a draft Executive Council decision regarding the executive regulations for the law of renting real estate in the Emirate of Sharjah, and a draft decision of the Executive Council regarding implementation procedures at the Rental Disputes Centre in the Emirate of Sharjah.
The Council directed, after an extensive discussion of the articles and items of draft laws and decisions, to include all the observations submitted by the members of the Executive Council and to coordinate on them to develop the best legal legislation regulating rental relations in the Emirate of Sharjah.
Dubai realty deals at record high: Dubai’s real estate market recorded 6,983 sales transactions in April. This represents a significant increase of 45.5% compared to April 2021, making it the highest performance for the month in the Dubai real estate sector in 10 years, according to Mo’asher, Dubai’s official Sales Price and Rental Performance index launched by Dubai Land Department (DLD) in cooperation with Property Finder.
The base year for Mo’asher is 2012, and the base month for the monthly index is January 2012, with the base quarter for the quarterly index being Q1 2012.
In April 2022, Mo’asher recorded a 1.273 monthly Index for sales and an index price of Dhs1,238,401. The apartment monthly index recorded 1.331 and an index price of Dhs1,140,201, and the villa/townhouse monthly index recorded 1.318 and an index price of Dhs2,124,828.
Moreover, Mo’asher recorded a 0.957 monthly index for rental and an index price of Dhs51,672. The apartment monthly index recorded 0.96 and an index price of Dhs47,578 and the villa/townhouse monthly index recorded 0.872 and an index price of Dhs132,917.
Mo’asher’s data for April showcased a dynamic market trend in Dubai’s real estate sector month-on-month. Overall, sales transactions continue to grow, surpassing 2021’s average monthly transactions; the overall sales price index shows a healthy growth since June 2020.
The secondary market for sales transactions continues to dominate the real estate market with a steady percentage of 60.32% in terms of volume and 70.70% in terms of value. Both transaction value and volume show the strength in ready properties, especially regarding apartments, which represent around 79% of total transactions, whereas villas/townhouses represent around 21%.
Comparing the overall performance of the first four months in 2022 to the same period in 2021, year-on-year data presents an outstanding performance on the total sales transactions in terms of volume with a recorded 27,507 transactions compared to 16,341 transactions in the same period last year. This presents a significant 68.33% growth rate year on year.
On the other hand, the total rental contracts in April 2022 reached 41,810 registered leases, of which 60.4% were new contracts while 39.6% were renewed. The annual contracts acquired 79.5% of the total contracts, while 20.5% were non-annual. Furthermore, the registered leases for residential purposes acquired around 74% of the total contracts, while 25% were registered for commercial purposes.
When compared to April 2021, the total number of rental leases increased by 3.2%. The number of new contracts increased by 8% to represent 60.4% of the total number of contracts compared to 57.7% in April 20221. Additionally, the total number of leases increased from 72.9% in April 2021 to 79.5% in April 2022, while the share of commercial rental leases witnessed a 4.23% increase during April 2022 to represent 25% of the total number of leases compared to 20.77% in April 2021.
Comparing the first four months in 2022 to the same period in 2021, Mo’asher concludes that the total rental leases in terms of volume witnessed a 6.47% increase, which recorded 202,340 rental leases in 2022 compared to 190,043 in 2021.
