From the poll of Emirates News Today, it has been shown that developers and experts agreed on expecting a rise in the real estate prices in Dubai. It indicated that some types of properties have already begun to become higher in values. It points out that developers have started increasing the prices of villas in some of the projects, hence, it’s a time of good opportunity to buy villas now than future.
Within a month of March, Dubai saw AED 25 billion worth of transaction in property industry which was the highest in 16 months from the data of Dubai Land Department. Buyers snap up apartments and villas worth of AED 10 billion and number of the deals registered reached 4,643 which was hit another record in a while. The report indicated this value had a 23 percent rise compared to its previous month.
The most sought after location within the villa category in March was Mohammed Bin Rashid City (11.5%) in terms of sales and followed by Tilal Al Ghaf which accounts for 10.1%, Nad Al Sheba for (9.9%), Dubai Hills Estate (8.2%) and Rukan for 5.8%. Business Bay was the most transacted area having 10.7% of the total sales in Apartment category, followed by Jumeirah Village Circle with 9%, Dubai Marina for 8%, Jumeirah Lake Towers 7.6% and Palm Jumeirah which accounts for 7.2% of the total sales occurred last month.
Growth in Demand
Muhammad Al Mutawa, Chairman of “Al Waleed Investment Company” admits his expectation of a hot summer in the real estate demand curve ahead of the Expo dates. He explains the upward movement of the slope in demand of luxury villas and apartments. He added if the market persists and the pandemic situation eases then there will be a market recovery before Expo arrival.
Khalifa Al Hammadi, Chairman of Union Real Estate Company says “We have witnessed a considerable improvement in the demand curve, especially for waterfront residential units and luxury villas. There is a small but positive movement in the suburb areas as well. Expo is perceived as a main factor leveraging the real estate sector in Dubai this year, it encourages a rapid recovery that has a large impact of local economy.
Mohamed Binghatti, CEO of Binghatti Real Estate Development Company, argues there will be an increase in the property prices in different areas particularly in city center which is experiencing sales progress while it’s relatively low on new projects.
Ahmed Al-Dawla, Head of “On Plan Real Estate” notes the real estate sector situation is steadily improving, and highly anticipated a strong recovery this year with the help of Expo 2020. He adds that townhouse prices are visibly increasing and rents are in the path of a rise in main areas. As for sales values, it started to increase due to less supply, being affected by the delay of certain projects and half of the value deposits in the escrow account creates issues for smaller developers, which in turn, matters limited to high liquidity developers.
Rents began to increase not only because of Expo but also due to the return of the travel and tourism into the country with support of Dubai’s initiative of controlling the pandemic.
Walid Al Zarouni, president of W Capital real estate company, says since the beginning of this year, it has been a noticeable change in the demand of properties. He points out that Expo will bring back occupancy for hotel apartments and enhancement in foreign direct investments. Imminent preview of the exhibition affects property prices in the current market particularly villas sort. The positive time has come to the developers, while the increased profit will offset their losses during Covid-19 crisis. He adds vaccination rate is a very important success factor for the Expo launch.
Alaa Masoud, Director of Marketing and Sales in Al Rowad Real Estate Company, said the first quarter of 2021 foreshowed the revival of the property market in Dubai, also now all dependent on the pandemic controls to avoid the related repercussions. There are many projects that are planned to open before the exhibition dates, pushing to sell with attractive offers and longer payment plans. Mr Masoud also agrees that he observed some of the developers have increased their prices of villas.
UAE is dealing with Covid-19 pandemic quite efficiently, which in turn positively impacts the economy situation as a whole, and the real estate industry in particular. This year is a year of opportunity believed that recovery will take place from the second quarter along with a rise in demand. Industry experts state that monetary policy put in act will ease the loans and create favorable interest rates. The policies will enhance purchases throughout the year quarters in conjunction with the Expo 2020.
Abdul Karim Al Mulla of Standard Real Estate predicts positive movements in the property prices, tend to continue the rise through Expo 2020. Thanks to several factors including golden residence programs for investments and increasing vaccination among residents. He also mentions that Dubai government has discounted the criteria of ownership of business as a foreigner. The supporting programs aligned with available opportunities in the real estate sector as a pair revitalizes the trade and fiscal sectors while providing support to the property industry.
The real estate sector is enjoying an ongoing recovery, data from the beginning of the year shows. Since announcement of the Expo 2020, there has been a positive change in the sector, that inflated at some levels before correction. In the last quarter, prices got stabilized and enhanced the market confidence upon a period of market volatility.
There is varying proportions of rises in real estate prices, thus it was a result of a few factors including the most significant one which is travel and tourism. Dubai is one of the safest city in the world, not only in terms of violations, but also with regard of pandemic, in light of precautionary measures and spread of vaccinations, consequently increases the property prices especially luxury.