Positive Economic & Employment Sentiment in Dubai Boosts Property Sales in H1 2021
Betterhomes released Dubai Real Estate Market Report H1 2021.
Dubai, United Arab Emirates, August 05, 2021 --(PR.com)-- Betterhomes, a leading real estate brokerage, released H1 2021 Dubai Real Estate Market Report, containing critical data and trends for Dubai. The report provides comprehensive insights on the health of Dubai's property market, covering residential sales and leasing. The H1 2021 report shows that Dubai's property market is back in the spotlight as one of the hottest real estate markets where individuals and investors flock in droves to purchase high-end properties.
Richard Waind, Group Managing Director, said, "In the first half of 2021, the Dubai property market saw transaction levels at their highest for over a decade. Domestically, low interest rates and improving job sentiment, coupled with a focus on the "home" brought on by the pandemic, have led to a surge in demand from residents. Internationally, Dubai's COVID-19 response and business-friendly approach have won many admirers. As a result, investors have returned in large numbers, looking to take advantage of both improving capital growth prospects and attractive rental yields, which remain higher than most established markets.
The luxury segment over AED 10 million has also enjoyed a record period as high-net-worth individuals, many from Europe and driven by concerns over the fiscal response to COVID-19 bailouts, look to settle in Dubai. The UAE government's approach to attracting the best and brightest expats with golden visas and business reforms also had a positive impact."
Key findings:
With an overall positive economic and employment sentiment in Dubai, UAE residents have been investing heavily in the property over the past 6 months. The number of units sold increased by 70% over the same period last year and 52% compared to H1 2019, as recorded by Dubai Land Department (DLD).
Transaction and prices in villa communities surged in H1 2021. It all started during the lockdown period last year. People realised the need for additional space for everyday life at home. Juggling work, leisure, and recreation while raising children from an apartment proved to be the tipping point for many buyers and tenants. Suppose we look at the numbers, villa transactions increased by a whopping 167%. Meanwhile, townhouse transactions increased by 97%. At Betterhomes, the number of buyer leads for villas/townhouses jumped by 123%, and the number of villas/townhouses sold increased by 146%. Four-bed villas proved popular in this category with a 26% increase in transactions.
According to Betterhomes data, the number of UK buyers increased by 600% in H1 2021 as they jumped from 10th place in H1 2020 to 2nd place in the company's ranking of buyers by nationality.
There are undoubtedly winners when it comes to property sales prices. Prices increased almost 40% in some communities, like in the Jumeirah Islands, while at the same time reduced in others by over 25%, like in Al Habtoor City and Dubai South, according to Dubai Land Department data. Average property prices per sq.ft. increased by 24% for villas/townhouses and 3% for apartments in H1 2021.
The residential leasing market in Dubai has followed a similar trend to sales in H1, with tenant leads and rental transactions up significantly compared to the previous year. The number of leasing transactions increased by 31% while the number of registered tenants increased by 47% compared to H1 2020, at Betterhomes.
As with sales, the desire for outside space and home offices has been a key driver for larger units. Three-bed apartments and villas were particularly in high demand. Many villa communities experienced a sharp decline in rental supply this year as tenants competed to snap up available units, which has in turn pushed prices up.
Rising rental prices in villas and townhouses have not gone unnoticed by investors. Since they typically have lower service charges than apartments, investors went for smaller villas and 2 or 3-bed townhouses with high rental demand and attractive yields.
Rental prices of villas followed market trends and increased by 14%, primarily due to a decline in the inventory in certain communities. Meanwhile, rents slightly decreased for apartments by 4%, according to Dubai Land Department data.
Richard Waind, Group Managing Director, said, "In the first half of 2021, the Dubai property market saw transaction levels at their highest for over a decade. Domestically, low interest rates and improving job sentiment, coupled with a focus on the "home" brought on by the pandemic, have led to a surge in demand from residents. Internationally, Dubai's COVID-19 response and business-friendly approach have won many admirers. As a result, investors have returned in large numbers, looking to take advantage of both improving capital growth prospects and attractive rental yields, which remain higher than most established markets.
The luxury segment over AED 10 million has also enjoyed a record period as high-net-worth individuals, many from Europe and driven by concerns over the fiscal response to COVID-19 bailouts, look to settle in Dubai. The UAE government's approach to attracting the best and brightest expats with golden visas and business reforms also had a positive impact."
Key findings:
With an overall positive economic and employment sentiment in Dubai, UAE residents have been investing heavily in the property over the past 6 months. The number of units sold increased by 70% over the same period last year and 52% compared to H1 2019, as recorded by Dubai Land Department (DLD).
Transaction and prices in villa communities surged in H1 2021. It all started during the lockdown period last year. People realised the need for additional space for everyday life at home. Juggling work, leisure, and recreation while raising children from an apartment proved to be the tipping point for many buyers and tenants. Suppose we look at the numbers, villa transactions increased by a whopping 167%. Meanwhile, townhouse transactions increased by 97%. At Betterhomes, the number of buyer leads for villas/townhouses jumped by 123%, and the number of villas/townhouses sold increased by 146%. Four-bed villas proved popular in this category with a 26% increase in transactions.
According to Betterhomes data, the number of UK buyers increased by 600% in H1 2021 as they jumped from 10th place in H1 2020 to 2nd place in the company's ranking of buyers by nationality.
There are undoubtedly winners when it comes to property sales prices. Prices increased almost 40% in some communities, like in the Jumeirah Islands, while at the same time reduced in others by over 25%, like in Al Habtoor City and Dubai South, according to Dubai Land Department data. Average property prices per sq.ft. increased by 24% for villas/townhouses and 3% for apartments in H1 2021.
The residential leasing market in Dubai has followed a similar trend to sales in H1, with tenant leads and rental transactions up significantly compared to the previous year. The number of leasing transactions increased by 31% while the number of registered tenants increased by 47% compared to H1 2020, at Betterhomes.
As with sales, the desire for outside space and home offices has been a key driver for larger units. Three-bed apartments and villas were particularly in high demand. Many villa communities experienced a sharp decline in rental supply this year as tenants competed to snap up available units, which has in turn pushed prices up.
Rising rental prices in villas and townhouses have not gone unnoticed by investors. Since they typically have lower service charges than apartments, investors went for smaller villas and 2 or 3-bed townhouses with high rental demand and attractive yields.
Rental prices of villas followed market trends and increased by 14%, primarily due to a decline in the inventory in certain communities. Meanwhile, rents slightly decreased for apartments by 4%, according to Dubai Land Department data.
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Betterhomes
Diana Dzaka Bico
971 4 409 09995
bhomes.com
Diana Dzaka Bico
971 4 409 09995
bhomes.com
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