COVID-19: Worst is over for the Dubai property market

COVID-19: Worst is over for the Dubai property market

Dubai’s property begins in 2021 on a strong note, as traditional areas of Dubai saw good purchasing and selling activities in the initial two months of the year.

Developers accept that Covid-19’s momentary effect won’t end up being a drag on the land area, which is a drawn-out business, thus, the most noticeably awful is over for the area. With big developers keeping down new venture dispatches, smaller developers are seeing less competition, which is likewise supporting the recuperation.

A real estate bulletin provided by the Dubai Land Department (DLD) on Monday said that Dubai Marina, Business Bay, Palm Jumeirah, and the Burj Khalifa were the most attractive areas for apartment deals in the initial two months of 2021.

Al Thanyah Fifth also ranked in the top five areas in January and Al Merkadh in February 2021.

Nad Al Sheba is among the top list in January for villa deals, then comes Hadaew Sheikh Mohammed Bin Rashid, Wadi Al Safa 5, Al Yelayiss 1, and Jumeirah 1. While Hadaeq Sheikh Mohammed Bin Rashid, Dubai Investment Park 1, Wadi Al Safa 7, Al Thanyah fourth, and Wadi Al Safa 5 topped the list in February 2021.

Rizwan Sajan, founder, and chairman of Danube Group noted that the real estate sector is rising, as public trust in the sector is coming back with the UAE’s success in its vaccination drive.

As a developer, we remain bullish about the real estate market. It is safe to say that the worst for the sector and our company is over. Real Estate is a long-term business and Covid-19 had a short-term impact on the sector. The long-term attractiveness of Dubai’s real estate remains strong,” added Sajan.

Imran Farooq, CEO of Samana Developers, provided that in spite of the Covid-19 problems, Dubai has witnessed signs of recovery, mainly in the villa and the rental segments.

Big developers have been scaling back their off-plan projects but the smaller developers gained due to the less competition. The ongoing successful Covid-19 vaccine drive by the UAE and Expo 2020 event in October this year are predicting a positive outlook for 2021 which will lead to growth across sectors. Since December 2020, Samana Developers has been bullish. Its two projects have been completely sold out and the third one has been sold out by 95 percent as we speak,” says Farooq.

The DLD provided that 3,036 new investors, or 62 percent, entered the market in January and February. Investments by local and international investors touched Dh14 billion by the end of February.

The bulletin also showed that many other important indicators of Dubai’s real estate market like 96,396 Ejari contracts were registered in January and February, of which 57 and renewed contracts, respectively. Seven new projects were also recorded during the same time.

The bulletin also provided that January 2021 gained a record number of home loans at 3,007, which was the maximum in a month. The cost of home loans set a new record touching Dh20.9 billion, which was the highest since October 2016. January also registered the highest number of real estate deals since March 2017 at 6,638 and cost at Dh29.4 billion since January 2018.

Real estate deals registered a gain of 17 percent in January, in comparison to the corresponding month in the previous year. Real estate brokers ranked in Dh84 million as their fees in January alone.

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