In 2020, the pandemic led to barren streets and empty skies across the world. After slipping last year, Dubai’s property market has found its footing. Real estate prices and sales activity are on an upswing. One of the world’s most dynamic property markets, Dubai witnessed sales of Dh88.12 billion in the first eight months of 2021 compared with deals worth Dh71.87bn during the whole of last year.
Buyers have scooped up both ready and off-plan homes this year. End-users and first-time property owners are leading the turnaround, experts said, with mortgage-backed deals picking up pace. Data from PropertyFinder.ae showed deals of houses that are yet to be built (off-plan sales) were up by more than a third (34 per cent) in the first half of 2021 when compared with the preceding six-month period. In terms of value, off-plan sales soared by almost 55 per cent during the same period.
Many analysts predicted a slow, U-shaped recovery, forecasting Dubai’s property market to get back on track by 2023-24. The previous three months, however, have seen robust demand, signalling a V-shaped recovery
Real estate is a cyclical business. Anticipating a lack of demand, property developers mothballed projects and new launches in 2020 and for the first few months of 2021. Many analysts predicted a slow, U-shaped recovery, forecasting the market to fully get back on track by 2023-24. The previous three months, however, have seen robust demand, signalling a V-shaped recovery.
The number of Dh1 billion daily deals registered at the Dubai Land Department has been rising steadily this year. June and August saw the highest monthly sales in a decade. This has led several property majors to bring forward the launches they had planned for later in the year or even next year.
A Reuters poll of 11 housing analysts strongly endorsed bright prospects for the Dubai property market. S&P said more than 8,000 new investors entered the Dubai property market in the first half of 2021. The ratings agency expects the revenues of real estate companies to grow by over 30 per cent in 2021.
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