What a difference a year makes! Even though 2021 globally was still suffering from the repercussions of COVID-19 restrictions, 2021 has increased sales from 2019 by 18,000+ transactions and an additional sales value of 60 Billion Dirhams.
EXPO2020 (2021/2022) could be argued to be part of the increase of confidence in market growth, but as seen in previous EXPOs, the real estate markets only really showed growth post exhibition, i.e. Milan grew its CBD district around the venue area in the 2 years after the event, which in turn created a higher demand in residential properties.
Dubai has not only kept the Emirate safe during COVID but also kept borders open (with safety precautions firmly in place) which has made Dubai Airport the busiest in the World over multiple months during the past 14 months.
In addition, Dubai Residents have absorbed the expected ‘over supply’ of villas/townhouses due to lock downs with people preferring to not live in apartments.
Dubai is still listed as ‘undervalued’ in the largest and most globally respected property report, UBS, in 2021 which has attracted many more investors and end users alike with the main draw being government control of the pandemic and more property sqft for your money than any other city. Not to mention the safety of Dubai, Tax Free income, Freelance Visas, Investor Visa, Freezone Company License reform and Prices.
An increase of transactions in 2021 is looking very promising for the market, Select Group, Emaar and Nakheel (amongst others) are developers that have amazing launches coming to the market, in addition to growth in population, and the secondary market still maturing for the first time in 15 years.
Banks for Mortgage transactions in Dubai reported a 68% y-on-y increase in mortgage transactions for Q1-Q3 2021. 50% finance is now available with a select number of banks for non residents.
Facts and Figures: collated by me from Property Monitor and Datafinder
Off plan has not increased as much as the secondary market partly due to the hold off on launches by Developers during the pandemic but also due to the high demand for end user units.
In line with the above mentioned demand for Villa/Townhouses, Emaar is again showing the largest market share of 38% throughout 2021, Arabian Ranches and The Valley being the most in demand in line with Supply.
Secondary Sales – Resale
End User = someone moving into the property themselves
As with Off Plan, Emaar is the leading developer for resale in apartments, with Downtown being the most invested in. The majority of these units were bought and placed on short term (holiday homes) due to the increase of up to 40% income from long term tenants. This option is also very popular as it gives the owner better flexibility to re sale as there no need for 12 months notice and easier access for viewings.
Arabian Ranches and Dubai Hills has been the top 2 developments in demand in 2021. The major keywords in searches on major portals have been brand new or upgraded. Emirates Living also took a large share due to the amount of upgraded properties in the area, some seeing a 10% transaction price above asking price.
Dubai Market History