Dubai realty continues its upward trajectory in the first half of 2021
Bayut & dubizzle, the UAE’s leading property portals, have released their combined Dubai Property Market Report for H1 2021, which has revealed that the emirate’s real estate sector recorded an incredible performance in the first half of the year, with impressive growth observed in sales and rental prices across most popular areas.
Bayut & dubizzle’s combined data reveals that properties for sale in Dubai have seen price increases between 6% to 20% in H1 2021.
Prospective buyers have turned to Jumeirah Village Circle (JVC), Akoya Oxygen, Dubailand and Jumeirah Lake Towers for affordably-priced apartments and villas, while HNW investors have favoured established communities such as Dubai Marina, Downtown Dubai and Arabian Ranches. Newer gated suburbs such as Dubai Hills Estate have also grown in popularity during H1 2021.
Dubai’s rental market has largely seen minor decreases under 10% in asking prices for affordable apartments, while luxury properties have experienced increases up to 13%. The affordable villa segment has seen rental rates remain largely steady in H1 2021, while the luxury market has observed a growth between 5% to 21% in asking rents.
Tenants working within a tighter budget have shown a preference for Jumeirah Village Circle (JVC), Al Nahda, Mirdif and Akoya Oxygen, while Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha have been most popular with high-income renters searching for luxury apartments and villas.
According to data released by the Dubai Land Department, 16,558 sales transactions for residential properties worth Dhs 24.7b were recorded in Dubai in the first half of the year. Transactions for ready properties came out ahead in H1 2021, accounting for 59% of total residential sales. This could be attributed to the growing demand from end-users looking to transition to homeownership or upgrade their homes.
This uptick in the Dubai property market has been driven by various factors: the UAE was recently ranked as the second-safest country in the world as well as the most vaccinated nation for COVID-19 globally as per the Reuters tracker which confirms that at least 76.1% of the UAE population have received at least one dose of the vaccine . This has not only helped economic activity in the country to recover post the lockdown but also highlighted its attractiveness as a global investment destination.
Other strategic reforms such as the introduction of remote work visas, announcements about the recipients of the Golden Visa and 100% foreign company ownership have also been instrumental in enhancing the country’s business infrastructure, attracting global talent and in turn, increasing the appetite for real estate. Dubai-based developer Emaar Properties reported property sales surging by 250% in the first five months of 2021 as opposed to the same period last year, while the Dubai Land Department recorded a 221% growth in the value of sales transactions in May 2021, compared to May 2020.
Bayut & dubizzle’s comprehensive report reveals that Dubai’s luxury apartment segment has recorded impressive growth in H1 2021, with sales prices appreciating across all popular communities. Dubai Marina has continued to be the long-standing favourite for luxury apartments for sale. The average sales price-per-square-foot for apartments in Dubai has increased by 7.11%, rising from Dhs 1,160 in H2 2020 to Dhs 1,242 in H1 2021.
Downtown Dubai and Business Bay have also seen average price-per-square-foot for apartments rise by 7% and 6% respectively, while Jumeirah Beach Residence and Palm Jumeirah have recorded increases around the 20% mark, pointing to the sustained demand for luxury waterfront homes.
When it comes to affordable apartments, Jumeirah Village Circle has retained the top position among prospective buyers.
Apartments in Jumeirah Village Circle have experienced a slight dip in sales price-per-square-foot in H1 2021, going from Dhs 839 to Dhs 812. This could be attributed to sellers keeping prices competitive as more projects are handed over in the area, such as Bloom Towers. Jumeirah Lake Towers, Dubai Silicon Oasis, Dubai Sports City and International City have also generated interest for reasonably priced apartments. These popular neighbourhoods have seen sales prices remain stable or increase up to 6%.