There are nine major factors that helped increase the value of real estate transactions in Dubai in the first quarter of 2021 and, according to the Brokerage Chairman W Capital, the annual increase was 44 percent. ارض
According to Walid Al Zarouni, the vaccination drive Covid-19, the new visa residence legislation and the upcoming Dubai Expo 2020 event are included.
Al Zarouni disclosed that the Dubai Land Department data showed an increase of Dh68.6 billion in the amount of real estate transactions between January and March of this year since 18,526 transactions were carried out. The value of immobilized transactions amounted to Dh47.7 billion, compared with 14,684 in the same period of 2020. Data showed that sales grew annually to Dh24,8 billion by 16 percent, through an amount of 11,658 deals, while mortgage value amounted to about Dh39,5 billion in the same period, with an annual growth of 76 percent and 8,091 deals.
In the first quarter of this year, real estate donations reached Dh4.8 billion, with 828 deals. Al-Zarouni said ready real estate share sales were the largest of 80%, equivalent to Dh19.8 billion, compared with a total value of Dh4.9 billion, representing 20% of off-plan sales. The best sales value for apartments and villas in the first quarter of 2021 was Sheik Mohamed bin Rashid Gardens followed by Wadi Al-Safa 5, Wadi al-Safa 7, Nad Al Sheba 1, and Al Thanaya Fourth. The lead in the category of apartments was: Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa or Merkad.
Walid Al-Zarouni pointed out that the sales recovery reflected optimism during 2021, since direct demand for immovable property was increased through the investment incentives provided by Emirates and government initiatives in support of population growth. Al-Zarouni has also highlighted the Dubai Urban Plan 2040, which aims to make Dubai the world's best place to live and work. The plan focuses on achieving a global development model that supports and motivates the wellbeing of society.
Al-Zarouni said that in the United African States, the widespread Covid-19 immunization centers are a key driver of Dubai's immobilization during the first quarter of this year. He further said that amending some of the provisions of the executive regulations of the nationality and passports legislation by which granting the citizenship of Emirati to investors, professionals, talents and their families is a qualitative shift in the real estate sector, based on a number of terms and conditions.
Furthermore, he said that hosting the Dubai Expo 2020 and spending on infrastructure projects will undoubtedly increase demand for rent in the Emirates and will stimulate investment in the immobilization industry in the years coming. The value added in the post-Expo period was estimated at Dh62.2 billion by research studies until December 2031.
Al-Zarouni said that the real-estate sector is also granted golden residency for ten years to residents of a number of categories, especially doctoral students, all physicians and engineers in the fields of computing, electronics, programming, electricity and biotechnology. "These decisions strengthen the buying power of property as targeted groups seek to settle in the country, increase the value of influxes of foreign investment and help to create new jobs."
Al-Zaruni said that Dubai Emirate provides quality facilities for the attraction of local, Arab and foreign investors because it decided to reform the Commercial Companies Law and cancel the obligation of certain local companies to have Emirati shareholders, allowing foreigners to own 100% in 122 commercial activities. This is expected to boost foreign direct investment in the UAE in general and in the immobilization industry in particular.
Al-Zaruni said that the pandemic risk diverted attention towards independent and larger living areas, while remote policies strengthened the tendency to acquire larger houses suitable for living and working together. He expects that after the pandemic these policies will continue. The decline in the number of new projects also contributed to reducing the supply of immovables in light of growth in demand which promotes price growth to satisfactory levels and increases the attractiveness of domestic and foreign investment.
UAE banks have also introduced a decrease in mortgage interest rates, which encourages people to buy residential property rather than rent, at a time when pricing levels have reached that give Dubai a great opportunity to invest in the property. Finally the position of Dubai as the best financial and business destination in the Gulf area has been reserved. Thanks to the speed of vaccination campaigns, demand for offices is increased and the turnout is increased.