During the first six months of 2021, compared to last year, the residential real estate sector in Dubai showed 74% growth in cumulative transaction volume and a 113% rise in cumulative value.
Dubai property market experienced a V-shaped recovery growth in the first half of 2021. The lowest point of the chart is located in November 2020, when the sector sank the most.
With the cumulative number of transactions growing by 74% and their cumulative value by 113%, the market is ready to consolidate the trend in the second half of this year.
Saddiq Farid, CEO of the Middle East's largest investment platform SmartCrowd, points out that a unique combination of positive factors has led to growth.
On the one hand, the government introduced new and attractive visa regimes and schemes to obtain residence cards for investors and visiting workers, on the other hand, the corporate sector is recovering, since the same government is extremely successful in fighting the COVID-19 pandemic and is intensively pursuing a national vaccination program.
In addition, the entire economy of the Emirate is spurred on by the upcoming Expo 2020 in October, which will last for 6 months and will attract thousands of investors, representatives of commercial and technological sectors to the city.
Of course, it is impossible to speak of absolute confidence in the future, but so far everything points to the continued growth of the sector.
On the background of Expo, finished real estate has grown the most. It attracted attention of the majority of investors and provided 72% of the total number of real estate transactions. Real estate under construction, respectively, provided only 28%.
Attention to finished properties has led to a 10% increase in the value of one square meter of property.
Against a backdrop of underdeveloped supply in the most popular areas, price levels in many places have reached 2011 levels.
The villa segment has a particularly strong impact on market performance, as most of the demand shifts to this small sector (13% of the market). Buyers are looking for spacious and expensive residential properties to balance work and family life.
Average sales by villas for the year increased by 19.3%. The average sales for villas under construction increased by 9.3%. Completed apartments increased by 8.7% year-on-year, while apartments under construction increased by 9.5%.
At the same time, the price per square meter of real estate under construction fell by 3.42 percent, as supply in this sector significantly exceeds demand.
Among the districts of the city as a whole, Palm Jumeirah shows itself best. The value of real estate sold there increased by 34%, and the number of purchase and sale transactions reached 221% growth rates.
However, Jumeirah Lake Towers (JLT) is in the lead in terms of transactions number growth. This figure was 262% there.