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Dubai’s real estate sector records over Dhs175b transactions in 2020

Dubai’s real estate market continued to be attractive to local and global investors in 2020, with the sector recording 51,414 transactions representing a value of over Dhs175 billion, according to the annual transaction report issued by the Dubai Land Department (DLD).

The report revealed that real estate sales reached Dhs72.5 billion with 35,423 transactions, while mortgages recorded 12,958 transactions with a total value exceeding Dhs87.7 billion, and grants recorded 3,033 transactions worth over Dhs15 billion.

The report also showed that Dubai attracted 31,648 new investors who concluded 41,571 investments worth over Dhs73.2 billion.

The sector was able to achieve a high volume of transactions despite the global COVID-19 crisis, which, according to Sultan Butti Bin Mejren, Director General of DLD, “affirms Dubai’s robust investment environment and its ability to adapt to various circumstances, guided by the leadership’s strategic vision to strengthen the capabilities of the emirate’s real estate sector.”

He added, “The 51,414 transactions recorded in 2020 validate the success of the government incentive packages that enhanced the market’s attractiveness and provided several opportunities for investors and developers who were keen to continue construction and deliver projects according.”

There was strong demand for investment in Dubai’s real estate sector from GCC investors in 2020, with 6,704 investors recording 8,659 investments worth around Dhs4.8 billion. Emiratis topped the list of GCC nationals, followed by Saudis, Kuwaitis, Omanis, and Bahrainis.

4,388 Arab investors registered 5,283 transactions worth a total value of about Dhs7.5 billion. Jordanian investors took the lead, followed closely by Egyptian, Lebanese, Sudanese, and Algerian investors.

Indians topped the list of foreign investments, followed by the Chinese, British, Pakistanis, and French. Dubai’s real estate market attracted 19,757 foreign investors, who concluded 24,666 investments worth over Dhs35.6 billion.

DLD’s statistics also revealed that 10,300 women concluded 11,723 investments worth over Dhs15 billion. Indians also topped the list of nationalities investing in Dubai’s real estate market, followed by Emiratis. Coming in third was China, followed by KSA, UK, Pakistan, France, Russia, Jordan, and Egypt.

Dubai Marina topped the list of areas in terms of the number of transactions, followed by Al Barsha South Fourth, Business Bay, Burj Khalifa, Hadaeq Sheikh Mohammed Bin Rashid, Al Thanyah Fifth, Al Merkadh, Al Yelayiss 2, Al Hebiah Fourth, and Wadi Al Safa 5.

Jebal Ali First topped the list of areas in terms of the value of transactions, followed by Dubai Marina, Al Merkadh, Palm Jumeirah, Hadaeq Sheikh Mohammed Bin Rashid, Burj Khalifa, Business Bay, Al Barsha South Fourth, Al Thanyah Fourth, and Al Yelayiss 2.

Hadaeq Sheikh Mohammed Bin Rashid topped the list of areas in terms of the number of mortgages, followed by Al Yelayiss 2, Dubai Marina, Al Barsha South Fourth, Jabal Ali First, Burj Khalifa, Al Thanyah Fifth, Me’aisem First, Nad Al Sheba 3, and Al Thanyah Fourth.

Jebel Ali First topped the list of areas in terms of the value of mortgages, followed by Palm Jumeirah, Al Merkadh, Al Yelayiss 2, Nad Hessa, Hadaeq Sheikh Mohammed Bin Rashid, Business Bay, Dubai Marina, Al Barsha South Fourth, and Seih Al Dahl.

Dubai’s real estate sector represents one of the main economic sectors in economic growth, and it actively contributes to the growth of its economy.

Over the past years, the emirate has achieved record rates of economic growth driven by the economic initiatives and packages that the Dubai Government is undertaking to raise economic growth and stimulate various economic sectors, according to the annual “Real Estate Sector Performance 2020” report issued recently by the Dubai Land Department. The report aims to provide a comprehensive picture of Dubai’s real estate sector’s performance by analysing all aspects of the sector’s performance and the various economic and operational indicators that affect its performance to determine its future trends.

The value of Dubai’s GDP reached Dhs407 billion in 2019 as compared to Dhs389 billion in 2018, with a growth rate of 2.2 per cent. But the emergence of COVID-19 in December 2019, and its subsequent outbreak around the world, led to a decline in global economic growth rates, prompting all international institutions to reduce their global growth forecasts for 2020. To avoid the consequences of the pandemic, Dubai provided a package of measures and economic incentives to ensure business continuity and help the various economic sectors overcome the pandemic, most importantly the launch of an economic stimulus package to support companies and the business sector in Dubai to boost financial liquidity, among others, the report noted.

The contribution of the real estate sector to Dubai’s GDP reached 7.2 per cent in 2019, and the sector achieved an added value of more than Dhs29.4 billion, with a growth rate of 3.3 per cent compared to 2018. Real estate transactions achieved remarkable growth in 2019 in terms of the number and value of real estate transactions, and this improvement continued during the first months of 2020.

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