UAE Property Transactions Surpass AED300 Billion in 2021: DLD

• January 18th, 2022

The Dubai Land Department reports that Dubai’s real estate market remains an economic engine, with 84,772 transactions valued at AED300 billion in 2021.

A high volume of transactions, driven by the leadership’s directives, was achieved in the sector last year, aided in part by the government’s economic stimulus packages and the emirate’s hosting of Expo 2020 Dubai.

Moreover, Dubai’s real estate market continues to attract investors from around the world due to its stability and attractiveness, as well as its transparent and flexible procedures.

As a result of the report, there were 65 per cent more transactions in 2021 than in 2020, and the value increased by 71 per cent. A total of 52,415 new deals worth AED148 billion were concluded by 52,415 investors in 2021, an increase of 73.7 per cent in investments, a rise of 65.6 per cent in investors, and a 100 per cent increase in investment value compared to 2020. The results show the sector’s ability to grow despite current unfavourable circumstances.

As a result of His Highness Sheikh Mohammed bin Rashid Al Maktoum’s directive to make Dubai the world’s best city for living and working, Dubai has grown as one of the most attractive global investment destinations.

Dubai’s real estate sector has witnessed a rise in investor confidence due to its robust infrastructure, flexible legislation, and safe environment. Foreign investments in Dubai have grown exponentially, indicating the success of the emirate’s economic initiatives, designed to improve the emirate’s global rankings in several sectors. Sheikh Hamdan said that for Dubai to achieve its aspirations, it must have a vision for the future and partner with foreign investors.

A statement by Sultan Butti bin Mejren, Director-General of DLD, stated, “Dubai’s real estate sector has once again demonstrated its resilience, attractiveness, and ability to achieve sustainable growth even during extraordinary circumstances.” The results highlighted in the report bode well for Dubai’s future as the country begins its next 50 years of development.

Bin Mejren said that Dubai is a preferred destination for investors both nationally and globally because of the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum and His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.

As part of their ambitious strategy, they intend to achieve regional and global leadership in real estate by 2022 and provide exceptional integrated services to all their clients in this market. In addition to regulating, encouraging, and managing investments in the real estate sector, they will also enhance knowledge of the real estate culture of the emirate.

According to the report, 6,897 investors from the GCC made 8,826 investments worth over AED16.88 billion.
6,097 Arab investors invested more than AED12.4 billion through 7,538 investments. Furthermore, the UAE’s real estate sector has attracted 38,318 foreign investors who have made 51,553 investments worth over AED99 billion.

As per DLD statistics, 17,705 women registered 22,165 investments worth over AED38.4 billion in 2021, a 72 per cent increase from the year before. Based on the survey results, businesswomen in Dubai are very confident about the real estate market.

Dubai Marina recorded 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 had the most transactions, exceeding AED28.6 billion, followed by Palm Jumeirah (AED26.6 billion), Hadaeq Sheikh Mohammed bin Rashid (AED15.8 billion), Burj Khalifa (AED14.2 billion), Business Bay (AED13.19 billion), and Al Thanyah Fifth (AED8.19 billion). Wadi Al Safa 5 (AED8 billion), Al Yufrah 1 (AED7.3 billion), Al Thanyah Fourth (AED7.2 billion), and Al Hebiah Fourth (AED7.19 billion).

A total of 1440 real estate mortgages have been recorded in Dubai Marina, followed by Hadaeq Sheikh Mohammed bin Rashid (1046), Al Thanyah Fifth (1015), 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).

Palm Jumeirah and Dubai Marina accounted for over AED10 billion in mortgages, followed by Al Yufrah 1 (AED6.49 billion), Warsan 2 (AED4.7 billion), Business Bay (AED4.55 billion), Al Barsha South Fourth (AED3.4 billion), Burj Khalifa (AED3.4 billion), Al Wasl (AED3 billion), Al Thanyah Fifth (AED2.9 billion), and Al Thanyah Fourth (AED2.6 billion).

Based on mortgage data, Dubai’s national and foreign banks are confident in the real estate market, contributing to the liquidity and funds available to investors and the financing options available for investment.

The report notes that 3,171 new brokers entered the market, bringing the total number of brokers to 8,002. The report states that 2715 of Dubai’s real estate brokers are female. The emirate has 1,421 brokerage firms registered.

The brokerage commissions for Dubai’s real estate market in 2021 exceeded AED3 billion with 12,067 transactions. In addition to having 71 registered real estate valuators, DLD now has two new valuation offices, totalling 38.

UAE has completed 35 real estate projects worth more than AED11 billion, and 319 more are in the pipeline. In 2021, there were also 602,714 registered Ejari contracts, of which 315,222 were new contracts. The number of real estate permits issued in 2021 totalled 6,168.

In 2021, there were 49,790 residential units, of which 41,020 sold for 68.5 billion AED, and 8,030 were villas sold for 18.2 billion AED.

Three new registered trustee offices in real estate were added during 2021, bringing the total to 13, and the number of registered trustee offices in real estate registration remained the same. The DLD issued 4,230 licenses during 2021.

In order of activity, they were: brokerage in the sale and purchase of properties (1,229), follow-up services (1,173), brokerage in rental properties (890), administrative supervision services for properties (262), purchase and sale of land and properties (159), private real estate rental and management services (128), real estate development (107), commercial complex (91), administrative supervision services for jointly owned property management companies (70), real estate mortgage broker (42) licenses, and shopping centres and malls (33).

The Department of Housing and Urban Development has also licensed a few commercial enterprises, such as real estate management and rental services, appraisal services, and brokerage firms.

Source: Property News