Dubai property deals in 2021 worth a record $82bn

 

Secondary market accounted for 60% of total transactions and off-plan contributed 40%, DLD says

Dubai registered 17,942 property transactions worth about Dh47bn in the fourth quarter of last year, the DLD said. Pawan Singh / The National

 

Dubai registered 84,196 property transactions worth Dh300 billion ($82bn) last year, which is the highest annual value recorded in the emirate’s history, the Dubai Land Department has said.

The volume of property transactions in 2021 grew annually by 66 per cent and their value increased by 72 per cent, a statement released by the DLD on Friday said.

The emirate recorded 5,601 property transactions worth about Dh16bn in December, said Mo’asher, the emirate’s official sales price index issued by the DLD in partnership with real estate listings portal Property Finder.

The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-driven slowdown as the country’s economy improves on the back of fiscal and monetary measures.

Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pickup in economic activity. New initiatives, such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme, are expected to support the local market, say industry experts.

Capital values for villas and apartments in Dubai surged in the fourth quarter of last year, real estate consultancy ValuStrat said.

"Nearly 60 per cent of all transactions in Dubai last year were for secondary/ready properties, while about 40 per cent were for off-plan properties," the DLD said.

The off-plan market transacted 24,761 properties worth nearly Dh46bn and the secondary market accounted for 36,480 properties worth about Dh106bn. This is the highest secondary market sales transaction value since 2008, the regulator said.

Meanwhile, Dubai recorded property sales transactions worth Dh151bn last year, scaling a 12-year record in terms of value. The volume of sales transactions last year was the highest since 2013, the DLD said.

Sales transactions are a change of ownership from one party to another whereas total transactions include sales transactions and other methods of transfers, such as mortgage registration and property gifts among family members, the DLD said.

Dubai registered 17,942 property transactions worth about Dh47bn in the fourth quarter of last year, the highest in terms of both volume and value since the corresponding period in 2013, the DLD said.

About 56 per cent of all transactions in the fourth quarter last year were for secondary/ready properties and 44 per cent were for off-plan properties. The off-plan market transacted 7,913 properties worth Dh16.9bn, while the secondary market transacted 10,029 properties at value of about Dh30bn, the DLD said.

“We have seen a surge in off-plan sales transactions in Q4, which is reflected in the fact that this is the highest volume and value of off-plan sales transactions in a given quarter since Q1 2010,” the DLD said.

Meanwhile, Dubai recorded a 64 per cent annual increase in transaction volumes and a 115 per cent rise in value in the fourth quarter of last year.

Separately, the emirate recorded 1,724 transactions worth Dh4.9bn during the week ending January 28, the DLD said.

A total of 139 plots were sold for Dh784 million, while 1,172 apartments and villas were transacted for Dh2.7bn, the regulator said.

The top three transactions for the week were land in Al Thanayah Fourth that was sold for Dh50m, followed by land transacted for Dh43m in Hadaeq Sheikh Mohammed Bin Rashid, and a plot sold for Dh50m in Al Thanayah Fourth.

The top three transactions for apartments and villas were an apartment that sold for Dh383m in Marsa Dubai, one that transacted for Dh270m in Business Bay, and another that sold for Dh252m in Business Bay, the DLD said.

Mortgaged properties worth Dh1.25bn were sold this week, with the highest being land in Al Muteena that was mortgaged for Dh113m.

Fifty-five properties worth Dh196m were granted among first-degree relatives, the DLD said.

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Dubai property deals more than doubled in 2021 amid economic recovery

The emirate registered sales transactions worth $41.13bn last year, making it the best year in terms of total transactions since 2013

The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of real estate sales transactions, buoyed by demand in the secondary real estate market as the UAE economy recovers from the coronavirus pandemic.

The emirate registered 61,241 sales transactions worth Dh151.07 billion ($41.13bn) last year compared with Dh71.87bn worth of transactions it closed in 2020, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, according to listings portal Property Finder. Total value of sales in 2009 was Dh155.6bn.

The sales transaction volumes in the fourth quarter were also 64.12 per cent higher when compared with the same period in 2020 and the value of deals during the period surged 114.74 per cent to Dh46.75bn.

“Investor sentiment remains strong, demand is still very high and supply is dwindling,” Lynnette Sacchetto, director of research and data at Property Finder, said. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into first half of 2022.”

Property prices have rebounded in Dubai after the pandemic disrupted the global economy. The UAE government's moves to provide more flexible visas has helped to attract more investors, with the emirate recording interest from more non-resident and high-net worth buyers, according to a recent Knight Frank study.

The six-month Expo 2020 global fair, which started in October, also had a positive impact on the property sector.

Last year, 59.6 per cent of all property transactions in the emirate were for secondary or ready property, while off-plan property accounted for 40.4 per cent of the deals, according to Property Finder.

The off-plan market transacted 24,761 properties worth Dh45.5bn during the year. Meanwhile, transactions in the ready market reached 36,480, with a total value of Dh105.56bn.

Expo 2020 appears to have had an impact on the Dubai real estate market, Property Finder said, with Dubai having recorded a total of 17,942 sales transactions worth Dh46.75bn since last October.

“This is the highest volume and value the Dubai real estate market has transacted during a quarter in over eight years," Property Finder said.

Business conditions in Dubai's non-oil private sector economy were at their strongest level in two and a half years in December, driven by a sharp increase in new orders amid a Expo 2020 Dubai demand boost and an improvement in the tourism sector.

The emirate's seasonally adjusted IHS Markit Purchasing Managers' Index reading climbed to 55.3 in December, from 54.5 in November, signalling a sharp improvement in operating conditions, as the non-oil economy continued to recover.

Ahmed Shaikhani Group Managing Director of Shaikhani Group says As the pandemic circumstance is that the most exceedingly awful inside the entire world, things are truly hard to outlined in light of the fact that during the present circumstance we've to be extremely cautious playing it safe to shape sure to not place work's life in peril since this work needs huge loads of labor and gratitude to pandemic we've to deal with the 6-foot hole, so what we've given our work top notch gear to frame sure work doesn't bargain and clients will get their lofts on time very 1000 units handover inside the activities of Cambridge business focus, champions tower 1 and Frankfurt sports tower which is worth of 700 million dirham around 600 units are to be finished soon inside one year in Champions tower 3, Gardenia 1 and two or three roughly esteem 300 Million dirham will be convey

Will 2022 offer more growth dynamics for Dubai’s real estate?

After luxury homes, mid-market properties will get their chance in sun

 

2021 turned out to be a banner year for Dubai’s luxury real estate, reaching a “Black Friday” fever pitch, and catching almost everybody off guard. As the year progressed, mid-market property started to pick up as well, albeit from a far lower base level with moderate upticks, signaling an increase in confidence as businesses started to stabilize.

The price cycle was a near mirror image of what happened in the first boom cycle of 2011-12, with luxury leading the fray, followed by the mid-market. Broadly speaking, with payment plans continuing to be the main driver for new sales, that trend is expected to repeat itself this year, especially as the headwinds of a rising interest rate cycle come into play. In that sense, repetition can itself be a pleasure: it creates and fulfills expectation at the same time, and provides an illusion of control.

We get what we are expecting - and what we wanted. That is the satisfaction of formula fiction: we know that the mystery will be solved and that all will be well at the end. But it can also be a painful repetition of being helplessly stuck in a pattern, in thrall to an obsession, a habit that we cannot break.

With repetition, the story becomes a cliché, a dead metaphor that has lost its figurative power. Yet as Dubai’s experience states, the story of every price cycle has led to the spawning of new communities where tens of thousands of investors and end-users benefit, through a process of gentrification, revival of stalled projects and re-zoning opportunities that lead to a more efficient allocation of capital going forwards.

Unlock value from stuck projects

In 2022, while these themes will continue to perpetuate themselves, the accelerated pace of change translates into tapping in the world of the unconscious, of deep-seated anxieties and desires. It is this aspect that gets most derided in analytical literature, as first-time buyers remain the holy grail for most developers.

For investors caught in the cycle of stalled or delayed projects, the propensity to invest again becomes the biggest obstacle. This remains the driving factor as to why the revival of projects will continue to play a major role this year, especially as value discovery has returned to the fore in developed communities like Dubai Marina, Jumeirah Village, Business Bay and parts of Dubailand. This is even more visible in upcoming communities. But the evolutionary solution - which at the higher end involves end-users constructing their own villa residences and/or protracted litigation punctuated by below replacement value sales from distressed owners - hardly qualifies as a non-zero sum game outcome.

Everything is still in play

Even as brokerages offer “swap mechanisms” (which ultimately is a simplistic mechanism of baking higher prices into newer projects), the ultimate goal remains the disentanglement and the unlocking of values from these delayed projects, a process we have witnessed in other parts of the world. There is no doubt these projects are an externality of rapid urbanization. Yet, as 2021 has shown, these externalities can be overcome and where they have, it has allowed affected investors to renew their confidence in the marketplace.

The picture then, that we see swimming into focus, is that of a city with a direct gaze that is challenging, a half-smile that is all knowing about what lies in store.

It is unlikely that the white hot pace of 2021 will be repeated. But there will be common themes of repetition; namely the renewed focus on mid-market housing, attracting first-time buyers and enticing existing owners to move up the ladder. These stories have been endlessly told and scrutinized. In addition, what we hope is a laser-like focus on investors who have not fully participated in the upside of past years.

The reforms, along with the price action and capital influx have been the perfect cocktail to induce activity on this front such that the demand curve (rather than the obsession of supply) can get a a jolt higher. If the stories of 2022 can include in its count of victors those who have managed to break past patterns, the market will have surely catapulted itself into the next stage of evolution.

This has been a long time coming. Dubai’s history suggests that this is now inevitable.

Shaikhani Group said, this coming year would be the simplest year for the Dubai. it'll be a boom for each industry. Moreover, they're trying their best to extend the productivity of their projects so it'll fork over by the top of this year….

Shaikhani Group explained, Dubai is understood by doing things on right time, they come up with those ideas where people think’s it's impossible, while ago Dubai was a desert, now nobody can say this was a desert. People like to visit Dubai for holidays, because all facilities are there including security which may be a basic necessity of life.

Dubai is one the simplest city to measure where everything is out there on the doorstep, this is often why Shaikhani Group invested their money, and that they do have different projects which are successfully in process. Shaikhani group tries to seek out the simplest deals with good luxuries therefore the customer can enjoy all the luxuries at full Shaikhani group already handover few projects in Dubai worth of many dirhams, they always achieve their target on time which shows the positive sign of their progress. Soon they're going to handover gardenia residency which is found in Jumeirah village circle, it's been expected they're going to handover this project by the top of 2022 or even earlier depends on the working conditions and environment

As the pandemic situation is that the worst within the whole world, things are really difficult to mapped out because during this situation we've to be very careful taking extra safety precautions to form sure to not put labour’s life in danger because this work needs tons of manpower and thanks to pandemic we've to take care of the 6-foot gap, so what we've provided our labour high-quality equipment to form sure work doesn't compromise and customers will get their apartments on time quite 1000 units handover within the projects of Cambridge business centre, champions tower 1 and Frankfurt sports tower which is worth of 700 million dirham approximately 600 units are to be completed soon within one year in Champions tower 3, Gardenia 1 and a couple of approximately value 300 Million dirham are going to be deliver