March boost for Dubai real estate with DLD figures hitting 22.5bn mark
Dubai Expo 2020, billed as the greatest show on earth, has come to an end. Yet, the great show on the real estate market stage in the UAE is going on. It must go on – stronger and upwards.
Dubai Land Department has reported property sales to the massive volume of 22.55 billion worth of properties for the month of March 2022, almost two years since the start to the pandemic. Importantly, the figure is spread over 8,420 properties in 172 localities in Dubai.
After staying in the 6,000 range for the past few months, the spurt in the volume of transactions is evidence to various factors coming together. There is reason to be confident that the real estate economy will restore to pre-pandemic levels when 204 billion of property transactions were done in nine months in 2017.
The figures last month were a strong sign, with 6,357 sales transactions making it the highest February ever in terms of sales volumes, a 125 percent increase in value year-on-year. In February, 59.6 percent of all transactions were for the secondary and ready properties and the rest for off-plan properties.
TOP-FIVE LOCALITIES IN VOLUMES FOR MARCH
“It was important to have a good month before Ramadan kicks in and the stupendous March figures are just the right shot in the arm,” says Pamul Sharma, Senior Vice President at Kingsley Properties.
“With the financial year coming to an end in countries such as India, this month has traditonally been always a key one. Apartments in the primary market specifically were the main driver this month compared to villas and townhouses.
“Mid-size segments such as Furjan, Jumeirah Village Circle (JVC), Arjan, Sobha Heartland and Wadi Al Safa 5 saw a lot of interest. Traditional hotspots such as Dubai Marina for those seeking luxury projects have also continued to retain demand,” says Sharma.
He is not alone in sharing the feel-good factor. According to a Berkshire Hathway survey of property professionals in the region, nearly 80 percent are confident that the trend will continue to grow for the rest of the year.
Apart from the timing of the year, there have been various factors building up. The exodus of Russians and Ukraine has only been a blessing in disguise.
According to a Saville Branded Residence global report released late last year, the UAE ranks third in the world, with Dubai ahead of cities such as Miami, New York, Phuket, Bangkok and London.
With visa regulations relaxing and the UAE encouraging people of talent and wealth to flock to the UAE, the population is swelling by the day.
The emirate has witnessed grown 80 times from 40,000 in 1960 to 3.3 million in 2020, but the growth is expected to race to the 5.5 million mark. This is reflecting on the residential price index.
Areas popular in the past quarter have been Emaar Beachfront, Downtown and Business Bay, Dubai Marina and JBR, and two new centres – Expo 2020 Centre and Dubai Silicon Oasis Centre.
Initiatives such as Dubai 2040 Urban Master Plan have only ensured that development has been in an organised fashion.