Dubai property sector gains pace, deals hit Dhs8.5 billion

Inayat-ur-Rahman, Gulf Today

A total of 1,791 real estate and properties transactions valued at Dhs8.5 billion were registered during the week, according to a report issued by the Dubai Land Department (DLD) on Thursday.

121 plots were sold for Dhs526.63 million, 1,121 apartments and villas were sold for Dhs 2.2 billion.

The top three transactions were a land in Palm Jumeirah sold for Dhs70 million, followed by a land that was sold for AED29.75 million in Hadaeq Sheikh Mohammed Bin Rashid, and a land sold for Dhs70 million in Palm Jumeirah in third place.

Al Hebiah Third recorded the most transactions for this week by 25 sales transactions worth Dhs52.31 million, followed by Nad Al Shiba Third with 18 sales transactions worth Dhs48.07 million, and Nad Al Shiba First with 15 sales transactions worth Dhs36 million in third place.

The top three transfers for apartments and villas were an apartment was sold for Dhs324 million in Marsa Dubai, a villa was second in the list sold for Dhs235 million in Palm Jumeirah, and thirdly it was an apartment sold for Dhs199 million in Burj Khalifa.

The sum of the amount of mortgaged properties for the week was Dhs6 billion, with the highest being a land in Palm Jumeirah, mortgaged for Dhs4 billion. 171 properties were granted between first-degree relatives worth Dhs 268 million.

Walid Al Zarouni, a leading real estate expert and Chairman of W Capital told Gulf Today that the Dubai realty sector is on solid growth track and is attracting more investors amid robust investing environment despite the COVID-19 challenges.

He highlighted the main supporting factors that contributed to the growth of the value of real estate transactions in Dubai during the first quarter of 2021,increasing 44% on an annual basis.

 Al-Zarouni indicated that the widespread vaccination centers in the UAE help the economy to recover at a faster pace than other world nations, as it leads proactive efforts in vaccination in the region to become the first in the Arab world and the third globally.

He mentioned 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

“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.”

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.

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% 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.

He 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.

“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.”

“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.”

“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.” He concluded.