Despite the COVID-19 induced challenges and economic concerns, a steep surge has been observed in the UAE real estate market. Recently, a property management company has released the UAE real estate performance report for the Q1, 2021 that states luxury properties are more in demand and the rental rates in Dubai and Abu Dhabi were strong during the first few months of the on-going year.
Q1, 2021 – A ray of hope
A whopping number of real estate transactions were recorded in four out of seven emirates in the United Arab Emirates (UAE) worth AED68.6 billion ($18.52bn) in the first quarter of this year. The real estate experts predict a positive and thriving future of the UAE’s realty market as the above-mentioned transactions that this sector is bouncing back to its original glory after the COVID-19 led slowdown.
Dubai and Abu Dhabi in limelight
The growing number of property deals in four emirates reflect the escalating interest of serious property buyers and investors, with Abu Dhabi and Dubai securing around 86 percent of the total deals. The transactions that took place in the first quarter of this year is the first sign of hope, positivity and belief that the worst is over and smart recovery is on the way – thanks to government’s interest in reviving the real estate sector, increased spending on infrastructure development and increased interest of people from across the globe in UAE’s tourism sector.
Dubai proves to be the star player
The total transactions that took place in Dubai and Abu Dhabi is worth AED59.2 billion and Dubai recorded AED47.7 billion in transactions during the January to April period. According to the statistics obtained from the Department of Land and Property in Dubai, a total of 5,800 investors completed property deals from January to March.
Abu Dhabi follows the footstep
According to data obtained from the Department of Municipalities and Transport – Abu Dhabi City Municipality, 3,847 deals were conducted during the reference period in Abu Dhabi that is worth AED11.5 billion.
Pandemic stirred some positivity in UAE real estate sector
According to another school of thought, the COVID-19 induced lockdown had also sparked the need to acquire bigger spaces such as townhouses and villas. Amidst the pandemic, people started looking to upgrade to larger spaces amidst the rise in “work from home” and “distant learning” ritual.
Property Monitor has recently reported that 81 villas worth more than AED10 million had been sold on Dubai’s Palm Jumeirah within the first four months of the year, compared to 51 sold during the entire last year. It seems like the global investors have started taking interest in what Dubai has to offer and high net-worth individuals have been flocking back to the market, lately. Resultantly, there is more activity in the UAE realty market thus more transactions are taking place.