Dubai realty sector on solid track as property deals reach Dhs8 billion

Staff Reporter, Gulf Today

Dubai has recorded 2,624 real estate and properties transactions at a value of Dhs 8 billion in total during the week ending June 24, 2022. The DLD report said that 274 plots were sold for Dhs1.15 billion, while apartment and villa sales totalled 1,757 at a value Dhs 4 billion.

The top three transactions were a land in Palm Jumeirah sold for Dhs126.25 million, followed by a land that was sold for Dhs52.53 million in Al Thanayah Fourth, and a land sold for Dhs26 million in Umm Suqeim Third.

Al Hebiah Fifth recorded the most transactions for this week with 154 sales transactions worth Dhs333.49 million, followed by Jabal Ali First with 29 sales transactions worth Dhs 88.95 million, and Al Merkadh with 17 sales transactions worth Dhs130 million in third place.

Meanwhile, Burj Khalifa came in first in terms of number of transfers for apartments and villas recording 223 transactions worth Dhs 632 million, with Marsa Dubai ranking second with 173 transactions worth Dhs527 million, and Al Jaddaf in third with 151 transactions worth Dhs203 million.

The sum of the amount of mortgaged properties for the week was Dhs2.73 billion. 77 properties were granted between first-degree relatives worth Dhs151 million.

Dubai real estate sales reached new highs during the first 5 months of this year, according to W Capital, the leading UAE  real estate brokerage.

Sales touched Dhs90b, generated through 34,000 transactions, which means that it the highest sales value ever during that period, according to the latest data issued by the Dubai Land Department (DLD).

Walid Al Zarooni, Chairman of W Capital, said that the month of May 2022, recorded the highest total value of real estate sales deals in the Emirate of Dubai, with a value exceeding Dhs17b, stemming from 6,000 deals. That is the highest number ever for the month of May since 2009, i.e. 13 years ago, when it recorded Dhs19.7b.

May 2022 recorded an increase of about 55 percent on an annual basis compared to May 2021  where sales value exceeded Dhs11b from 4,429 real estate deals.

Al Zarooni believes that 2022 is the beginning of a new phase of strong momentum by the real estate sector in the emirate, amid growth in demand driven by a number of positive factors.

He stressed that the sector is experiencing a wave of renewed momentum, and continues to break records in sales and transactions, while the strong performance was driven by the event of Dubai Expo through the six months ending in March 2022.

He stressed that the increasing demand is led by a large segment of foreigners and investors to buy luxury real estate. These buyers prefer to come to Dubai after the precautionary measures during the Covid-19 pandemic,and renewable investment opportunities and encouraging market returns compared to other markets, whether regionally or globally.

The chairman stated that the real estate sector in Dubai continues to confirm its position as a fundamental pillar of growth for all sectors and economic activities in the emirate, especially after the great success of the “ Dubai Expo 2020” which attracted about 24 million visitors.

He pointed to the investment attractiveness that Dubai enjoys compared to competing markets, as it provides all options for investors from ready-to-sale to off-plan sales, mortgages, gifts and other features that have increased the attractiveness of the local market.

He believes that the high demand for off-plan sales is motivating large numbers of tenants to move towards ownership and purchase, making their first choice in the projects under implementation or new in light of the developers’ incentives.

He revealed that Dubai provides all options for investors from ready to selling off -plan, mortgages, endowments and other features that support the attractiveness of the market.

Meanwhile, Abu Dhabi’s real estate market has started on a strong note as the first quarter recorded a little over 3,300 transactions valuing more than Dhs11.3 billion. The second quarter is expected to end on a similar note, paving the way for a strong 2022, according to the Zoom Property Insights.

The year 2021 saw the delivery of 6,000 residential units in Abu Dhabi. However, the number will surpass this year with the expected delivery of around 7,000 units in 2022. With this, the property prices will also increase in the second half but at a steady rate. The Zoom Property Insights note that the demand for luxury properties in island communities, such as Yas Island and Saadiyat Island will continue to rise in H2.

Ata Shobeiry, CEO at Zoom Property, believes the Abu Dhabi property market will pack in a strong performance in the second half of 2022 due to new mega-developments, Etihad rail expansion, and rising oil prices.