Al-Zarouni: It contributed to the growth of the value of transactions by 44%

9 positive factors supporting Dubai real estate growth during the first quarter

• Ready real estate accounted for the largest share of sales by 80%, equivalent to 19.8 billion dirhams.

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• Walid Al-Zarouni: "The widespread vaccination operations against the virus in the UAE are helping its economy to recover at a faster rate than others in the world."

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The real estate expert, Chairman of the Board of Directors of "W Capital" real estate brokerage, Walid Al Zarouni, monitored nine main factors that contributed to the growth in the value of real estate transactions in Dubai during the first quarter of 2021, on an annual basis by 44%, which gives a strong indication of the continuity of achieving Positive results this year, as the emirate continues to enhance the confidence of local and international investors in its attractive real estate environment.

Al-Zarouni revealed that the data of the Dubai Property and Land Department showed a growth in real estate transactions (sales - mortgages - gifts) to 68.6 billion dirhams in the first three months of 2021, through the implementation of 18,526 actions.

Real estate disposals

The value of real estate transactions recorded 47.7 billion dirhams, through the implementation of 14,684 transactions in the same period of 2020.

The data showed that sales deals recorded an annual growth during the first quarter of 2021 by 16% to 24.8 billion dirhams, executed through 11,658 deals, while the value of real estate mortgages during the period amounted to about 39 billion dirhams, with an annual growth of 76% through 8,091 deals.

And real estate donations recorded about 4.8 billion dirhams, through 828 deals during the first quarter of this year.

Ready real estate

Al-Zarouni pointed out that ready-made real estate acquired the largest share of sales by 80%, equivalent to 19.8 billion dirhams, compared to 20% of off-plan sales of 4.9 billion dirhams.

According to the data of the Land Department, Sheikh Mohammed bin Rashid Gardens ranked the top five in terms of the value of sales for apartments and villas during the first quarter, followed by Wadi Al-Safa 5, then Wadi Al-Safa 7, Wand Al-Sheba 1 and Al Thanyah fourth, respectively.

With regard to the apartment category, the lead during the first quarter of the year was as follows: Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Mercad District, respectively.

Al-Zarouni explained that the recovery in sales reflects the state of optimism during 2021, the investment incentives provided by the emirate, government initiatives supporting population growth, and the increase in direct demand for real estate.

Market performance

He pointed out that the market's performance during the first quarter showed positive indicators, evidenced by the increase in the value and number of deals, and the slowing down of prices in areas that witnessed a price correction movement, to take an upward turn due to the demand for buying villas and apartments in quality projects.

He stressed that the real estate sector also gave an important and promising indicator of recovery, and taking a high path in prices, after the correction period that it witnessed in recent years, with the growing and increasing rates of market performance that enjoys qualitative government attention, which resulted in the consolidation and increase in the confidence of citizens, Arabs and foreigners, with the resumption of Most of the commercial activities in the emirate, and the vaccination campaigns continue.

Factors supporting the sector's performance in Dubai during the first quarter of 2021 include:

1- Vaccination against "Covid-19"

The pandemic has constituted real crises for the global economy, as accelerating the distribution of vaccines will be a turning point towards compensating for the losses, and the countries that are faster in distributing vaccinations will achieve the most benefit from the economic benefits associated with that.

Al-Zarouni indicated that the widespread vaccination operations against the virus in the UAE are helping its economy to recover at a faster rate than others in the world, as it leads proactive efforts in vaccination operations in the region, becoming the first in the Arab world and the third in the world.

2- Amending some provisions related to granting nationality

Amending some provisions related to the executive regulations of the federal law regarding nationality and passports, through which it permits the granting of Emirati nationality to investors, professionals, talents and their families, based on a number of controls and conditions. And paves the way for launching new projects.

Al-Zarouni believes that the amendment of the Nationality Law represents an exceptional new initiative to attract investors, distinguished people, and those with competencies and talents in the UAE, and that it would contribute to forming sustainable societies, strengthening social and cultural identity, and bringing qualified and skilled human resources to the country.

3- «Expo 2020 Dubai»

Hosting the "exhibition" and the continuous spending to develop the infrastructure will enhance the demand for renting real estate in the emirate, as well as boost investment in the real estate sector in the coming years.

Research studies have estimated the added value in the post-Expo period at 62.2 billion dirhams until December 2031, by contributing to supporting sustainable economic development, moving towards an innovation-based economy, and providing an appropriate business environment to help support momentum and stimulate key growth sectors. Such as logistics, transportation, travel, tourism, construction, construction, real estate, and education.

4- Granting golden residency

The real estate sector will also benefit from the approval of golden residency grants for residents for a period of 10 years for several categories, most notably those with PhDs, doctors, and engineers in the fields of computer engineering, electronics, programming, electricity and biotechnology.

Al-Zarouni added, "Such decisions enhance the purchasing power of real estate, as the target groups seek settlement in the country, raise the value of foreign flows, and help create new jobs in the country."

5- Quality facilities

The Emirate of Dubai provides qualitative facilities to attract local, Arab and foreign investors. It has reformed the Commercial Companies Law, canceled the requirement that some local companies have an Emirati shareholding, and allows foreigners to own 100% in 122 commercial activities, which is expected to boost foreign direct investment in the country. In general, and in the real estate sector in particular.

6- Increasing demand for larger spaces

The risks of contracting the virus have shifted attention towards obtaining independent and larger living spaces, and remote work policies have also strengthened the tendency to acquire larger homes suitable for living and working together, and these policies are expected to continue after the end of the pandemic.

7- Reducing the number of new projects

The decrease in the number of new projects helps 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.

8- Reducing interest rates

UAE banks have introduced a cut in interest rates on mortgage loans, which encourages residents 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 investment.

9- Dubai’s regional position

Dubai's maintenance of its position as the best financial and business destination in the region is helping to increase the demand for offices and increase turnout thanks to the speed of vaccination operations.

Government initiatives

The real estate expert, Chairman of the Board of Directors of W Capital Real Estate Brokerage, Walid Al-Zarouni, said that the factors that he monitored during the first quarter of this year, as a force supporting the real estate sector, will be added to the recent government initiatives, such as granting citizenship and long residencies to investors, talented and retirees, and Dubai Urban Plan 2040 »to be the best city for life in the world, which focuses on completing a global development model aimed at the well-being of society, empowering its members, and motivating them to creativity, innovation and success with the expansion of the urban space in the emirate, in addition to the new industrial strategy that plans to double the sector’s contribution to 300 billion dirhams by 2030.

The best-selling areas for apartments and villas

Sheikh Mohammed bin Rashid Gardens.

Safa Valley 5.

Safa Valley 7.

- Nad Al Sheba first.

- The fourth tuck.

The most popular areas for apartments

- Dubai Marina

Palm Jumeirah.

- Commercial gulf.

- Burj Khalifa.

- Al-Merkad area.

• Expo 2020 and the continuous spending to develop the infrastructure will boost the demand for renting real estate in Dubai.

• 68.6 billion dirhams of real estate transactions in Dubai during the first quarter of 2021.

• Sales deals recorded an annual growth in the first quarter of 16% to 24.8 billion dirhams.

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