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real estate boom

Walid Al Zarooni

November 21, 2021

Tracker of figures and data of the real estate sector in the Emirate of Dubai, finally, finds beyond any doubt that this vital sector has maintained an increasing pace of performance since the beginning of this year, which heralds a real estate boom in the emirate.

While this pace reflects the flexibility and attractiveness of the sector, it also confirms a strong return of the market to pre-Covid-19 levels, after it has overcome its repercussions and recovered from its effects.

For example, the residential real estate sector in Dubai recorded more than 10,000 deals worth more than 26 billion dirhams during July and August 2021, making the third quarter of the year the best performing third quarter ever during the past 12 years, according to the latest data from the Land Department. in Dubai.

The data also showed the growth rates recorded by the sector during the first 10 months of 2021, a remarkable recovery and an unprecedented boom after recording record sales of 69.42 billion dirhams, while the value of properties sold in total during the period recorded about 117 billion dirhams, distributed over about 48 One thousand 492 properties.

As for last October, sales recorded a growth of 89.6%, compared to the same month in 2020, and the value of residential unit sales in the emirate amounted to 13.03 billion dirhams, compared to 6.87 billion dirhams in October 2020.

The upward trend in the real estate market this year was driven by several main factors, the most important of which is the organization of the "Expo 2020 Dubai" exhibition, whose positive effects will continue in the coming years, as well as the rapid recovery of the UAE economy from the repercussions of the pandemic, and its growth of 2.2% in 2021. , then 3% in 2022, according to International Monetary Fund estimates, in addition to the country being one of the world's largest providers of the anti-Covid-19 vaccine, which helped promote the recovery of economic activity.

These positive results appear in the upward trend of real estate selling and rent prices in the most demanded areas in the emirate. The price path is still upward, and keeps pace with the economic measures followed by the government, and here it must be noted the role of government initiatives supporting through incentives for granting golden residencies, and other exceptional initiatives, And recent changes to long-term visa laws, which are helping to provide additional market demand from local and international buyers and renters.

The rental sector witnessed varying increases in average annual rents between 10% in the asking prices for affordable apartments, and 30% for luxury apartments.

On the other hand, affordable villas in Dubai witnessed an increase in rent rates that did not exceed 14% during the third quarter of 2021, while rents for luxury villas recorded a growth of between 2 and 14%, according to data from the real estate websites Bayut and Dubizzle.

The high demand in the market, especially for villas, reflects the type of investor with a high income, and confirms confidence and betting on the future of investment in Dubai.

The real estate market in Dubai is expected to witness more momentum, and an expected record of real estate sales will be recorded during the fourth quarter of 2021, especially since it is common knowledge that this quarter will drive the sector’s wheel for the new year, and most likely this trend will move forward in 2022, which embodies living evidence that the sector is on the verge of a new boom in development and construction work, which will be met by an upward movement of sales.

As a future outlook, the real estate market is going through a new real estate cycle, and investors should seize opportunities and take advantage of unprecedented facilities in the market.

Chairman of the Board of Directors of “W Capital Real Estate Brokerage Company”

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