Dubai real estate back in the spotlight with deals peaking in 10 years – News

Dubai’s real estate sector is back in the limelight as one of the hottest real estate markets where individuals and investors are flocking to buy high-end properties, Betterhomes said on Tuesday.

Releasing its report on the Dubai real estate market for the first half of 2021, the real estate brokerage said that the number of units sold increased by 70% in the first half of 2021 compared to the same period last year and by 52% compared to the first half of 2019. “With an overall positive sentiment for the economy and employment in Dubai, residents have invested heavily in property over the past six months.

Richard Waind, chief executive of the group, said that in the first half of 2021, Dubai’s real estate market saw transaction levels at its highest level in more than a decade. “Nationally, low interest rates and improved sense of employment, coupled with the focus on the ‘home’ caused by the pandemic, have resulted in increased demand from residents. “

Internationally, Dubai’s Covid-19 response and its business-friendly approach have won many admirers, Waind said. “As a result, investors have returned in large numbers, seeking to take advantage of both improved prospects for capital growth and attractive rental yields, which remain superior to most established markets.”

He said prices will continue on an upward trajectory over the next two years, with the US Fed’s reservation stating that interest rates will remain at their current lows until 2022 and the supply of new units will peak. and is expected to decline from next year.

“However, with rental prices lower than selling prices in many places, we are finding that investor margins are reduced, especially in the outlying communities with a lot of new apartments, so I expect that we will continue. to see price winners and losers across the market, ”Waind said.

Transactions and prices in villa communities surged in the first half of 2021. Villa transactions increased 167% while townhouse transactions increased 97%.

At Betterhomes, the number of potential villa / townhouse buyers jumped 123 percent, and the number of villas / townhouses sold increased 146 percent. Four-bed villas have proven to be popular in this category with a 26% increase in transactions.

The number of UK buyers rose 600% in the first half of 2021, from 10th place in the first half of 2020 to 2nd place in the company’s ranking of buyers by nationality, according to data from Betterhomes.

Prices have risen by nearly 40% in some communities, such as the Jumeirah Islands, while falling in others by more than 25%, such as Al Habtoor City and South Dubai, according to data from the Dubai Land Department. . Average property prices per sq.ft. increased by 24% for villas / townhouses and 3.0% for apartments in the first half of 2021.

The report indicates that the residential leasing market in Dubai followed a similar trend to sales in the first half of the year, with leads and rental transactions up significantly from the previous year. Rental transactions increased by 31% while the number of registered tenants increased by 47% compared to the first half of 2020 at Betterhomes.

“The desire for outdoor space and home offices was a key factor for the larger units. Three bedroom apartments and villas were particularly in demand. Many villa communities have experienced a sharp drop in rental supply this year as tenants compete for available accommodation, which has pushed up prices, ”the report said.

“The rise in rental prices for villas and townhouses has not gone unnoticed by investors. As they generally have lower service charges than apartments, investors have opted for smaller villas and two or three bedroom townhouses with high rental demand and attractive yields. Rental prices for villas followed market trends and increased by 14%, mainly due to lower inventory in some communities, ”the report said.

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Issac Jean

Editorial Director of Khaleej Times, is a well-connected Indian journalist and economic and financial commentator. He has worked in mainstream journalism in the United Arab Emirates for 35 years, including 23 years with the Khaleej Times. A graduate in English and a graduate in economics, he has won more than twenty awards. Acclaimed for his genuine and insightful analysis of global and regional business and economic trends, he is respected for his astute understanding of the local business scene.