Why Dubai’s property market continues to soar
Despite the global economic impact of the Covid-19 pandemic, Dubai’s property market continued to exceed expectations in 2021, posting decade-high sales volumes and attracting unprecedented levels of investor interest from across the globe.
For the first time in more than a decade, the sector reported total sales exceeding AED300 billion (US$81.7 billion) on the back of 84,772 transactions, according to official data published by Dubai Land Department (DLD) and reported by WAM.
The result marked a massive 65% increase in the number of transactions and a 71% increase in value compared to 2020.
Commenting on the year’s performance, Sultan Butti bin Mejren, Director General of DLD, said: "Dubai's real estate sector has once again proven its resilience, attractiveness and ability to achieve sustainable growth even during the exceptional circumstances being witnessed globally. The results bode well for the future as the country ushers in another 50 years of economic development. The real estate sector represents a major catalyst for the growth of various other sectors.”
Demonstrating Dubai’s resurgent profile as a preferred destination for international property investors, the DLD revealed the sector attracted 38,318 foreign buyers in 2021, who concluded 51,553 new investments worth more than US$26.7 billion combined.
A total of 6,097 Arab investors recorded 7,538 investments worth more than US$3.4 billion, while 17,705 women registered 22,165 investments worth US$10.5 billion, marking a 72% increase compared to 2020. The performance indicates that businesswomen “have great confidence in Dubai's real estate market”, according to the DLD.
Dubai Marina saw the highest number of transactions, with 7,968, followed by Business Bay (5,687), Al Thanyah Fifth (5,092), Al Barsha South Fourth (4,813), Hadaeq Sheikh Mohammed bin Rashid (4,352), Burj Khalifa (4,279), Wadi Al Safa 5 (3,536), Al Hebiah Fourth (3,261), Al Merkadh (3,150), and Palm Jumeirah (2,803).
Dubai Marina also recorded the highest overall transactional value with sales topping US$7.8 billion, followed by Palm Jumeirah (US$7.24 billion), Hadaeq Sheikh Mohammed bin Rashid (US$4.3 billion), Burj Khalifa (US$3.87 billion), Business Bay (US$3.6 billion), Al Thanyah Fifth (US$2.23 billion). Wadi Al Safa 5 (US$2.2 billion), Al Yufrah 1 (US$2 billion), Al Thanyah Fourth (US$1.96 billion), and Al Hebiah Fourth (US$1.95 billion).
The largest number of real estate mortgages were also recorded in the Dubai Marina area (1,440), followed by Hadaeq Sheikh Mohammed bin Rashid (1,046), Al Thanyah Fifth (1,015), Burj Khalifa (922), Al Barsha South Fourth (875), Nad Al Sheba 3 (864), Al Yelayiss 2 (717), Al Thanyah Fourth (675), Me’aisem First (655), and Palm Jumeirah (618).
A total of 35 real estate projects with a value exceeding US$3 billion were completed in 2021 and 319 projects remain in progress, as of January 2022. Additionally, 602,714 Ejari contracts were registered in 2021, of which 315,222 were new contracts. A total of 6,168 real estate permits were also issued last year.
Furthermore, 49,790 real estate units were registered in 2021. A total of 41,020 units were sold, with a value exceeding US$18.6 billion, while 8,030 villas worth over US$5 billion were sold.
Discussing the sector’s impressive performance in 2021, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, said: “The rise in investments and the increasing interest shown by global investors in Dubai is a testament to the effectiveness of the emirate’s strategic economic initiatives that have sought to strengthen its leadership in various sectors and enhance its global rankings in development indicators.
“Dubai has a clear vision for the future, and its partnership with the global investment community continues to be vital to its ability to accelerate growth and meet its ambitious goals for the future.”