Dubai realty sector zooms as investments top Dhs11b

Staff Reporter, Gulf Today

The real estate sector in Dubai showed a continuous flow of real estate investments in May 2021, recording 5,359 investments worth over Dhs11 billion. In addition, 11,387 new investors entered the market, comprising 66 percent of total registered investors since the beginning of the year, according to Dubai Land Department (DLD) Real Estate Updates.

Dubai’s real estate sector has continuously proven its attractiveness to investment and its flexibility in adapting to various developments, thanks to the legislative environment and infrastructure created by the policies and directives of the wise leadership, which has had a clear impact on the results achieved in the sector during the past months, specifically since the beginning of this year, and contributed to strengthening the emirate’s global position as a preferred real estate investment destination.

According to the real estate bulletin issued by DLD under the name ‘Real Estate Updates,’ 6,021 real estate transactions worth Dhs21.8 billion were recorded in May 2021, achieving significant growth in number of 197 percent compared to May 2020, 35 percent compared to May 2019, and growth in value of 221 percent compared to May 2020.

Real estate sales transactions represented 74 percent of the total number of real estate transactions during May 2021 and achieved a growth of over 214 per cent compared to May 2020.

The bulletin showed that the value of real estate brokerage achieved by effective real estate brokers in Dubai’s real estate reached AED827 million since the beginning of the year. In addition, 253,959 Ejari contracts were recorded in January - May 2021, 53 percent of which were new contracts and 42 percent were renewed contracts. The residential sales index achieved 1,071 points during May 2021, with a growth rate of 7.1 percent compared to the base year.

The bulletin highlighted the top five areas for investor attractiveness. In villa sales, Hadaeq Sheikh Mohammed Bin Rashid topped the list in May 2021, followed by Wadi Al Safa 5, Wadi Al Safa 7, Al Thanyah Fourth, and Palm Jumeirah. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay, and Al Thanyah Fifth topped the list in May 2021.

It is expected that the real estate sector will witness increased growth and a greater recovery in the coming period, with the fast-approaching date of Expo 2020, which in turn will attract tourists and visitors from around the world and constitute a great opportunity for the real estate sector to strengthen its position regionally and globally.

Meanwhile a leading real estate developer in the UAE has announced  a special offer giving customers a chance to obtain guaranteed rental return.

The offer, which is valid until the end of June 2021, requires the customer’s commitment to pay only 7% down payment, with a monthly payment of 1% of the unit  value  until the day of handing over. After 7 months, the customer begins to collect a net rental return of 7% annually, for a period of 7 years, which means redeeming 49 % of the value of the housing unit after 7 years of handover.

Islam Ahmed Suleiman, CEO, Reportage Properties pointed out Reportage’s continuous interest in making offers that meet the aspirations and requirements of all customers, and provide various options for buyers of different segments. He highlighted the robust demand for housing units in all of the company’s projects, that boosted their sales this year, which reflect the strong performance of the UAE real estate market after overcoming the challenges associated with the COVID-19 pandemic.

Suleiman stated that work in all  projects is done on schedule , in preparation for  handing over to buyers on the specified dates. The company’s recent launch of their first project outside the UAE, is another proof of their strong financial position and the stability of their business model.

Reportage Properties is developing 11 projects, providing about 5,000 housing units within the most important investment sites in Abu Dhabi and Dubai, in addition to a project that has been completed and delivered in Masdar City in Abu Dhabi, as well as a project in Egypt.