Dubai’s real estate market witnessed transactions worth AED24.5 billion in the first half of 2020, despite the impact of the global COVID-19 outbreak, according to a report issued by the Dubai Land Department (DLD).
The figures indicate that Dubai’s real estate sector is gradually returning to normal, driven by the stimulus packages and initiatives launched by the government and its departments in the past few months.
Transactions exceed expectations
The report states that real estate transactions for the second quarter of 2020 exceeded AED24.5 billion with 7,834 procedures, while 22,779 procedures were recorded during H1 2020, representing a total value of AED72.5 billion.
In terms of mortgage registration of lands, buildings, and units in Q2 2020, Hadaeq Sheikh Mohammed bin Rashid was placed first with 205 transactions worth AED341 million, followed by Me’aisem First with 113 transactions worth AED113 million, and Jabal Ali First with 107 transactions worth AED156 million. The next seven positions were secured by Burj Khalifa, Al Yelayiss 2, Dubai Marina, Al Thanyah Fourth, Al Barsha South Fourth, Wadi Al Safa 7, and Al Thanyah Fifth respectively.
In terms of sales registration of various properties including land, buildings and units in Q1 2020, Al Merkadh ranked first with 631 sales transactions worth AED1.52 billion, Dubai Marina, second with 515 transactions worth AED1.1 billion, and Al Barsha South Fourth was placed third with 430 transactions worth AED371 million. These were followed by Business Bay, Wadi Al Safa 5, Hadaeq Sheikh Mohammed Bin Rashid, Al Warsan First, Burj Khalifa, Al Khairan First, and Al Thanyah Fifth respectively in the next seven positions.
In terms of investments, the report states that in Q1 2020, 9,160 investors concluded 11,940 investments worth AED21.2 billion, while investments in Q2 2020 saw a decline with 5,528 investors concluding 6,523 investments worth almost AED11 billion. A total of 14,688 investors finalised 18,463 investments in H1 2020 worth AED32.15 billion.
In Q2 2020, Dubai’s real estate market welcomed 1,223 investors from the GCC with 1,431 investments worth over AED2.1 billion, while 706 Arab investors concluded 798 investments worth approximately AED 1.2 billion. The report highlights the continued attractiveness of Dubai’s real estate market for foreign investors in the second quarter of the year, evidenced by the fact that 3,444 investors concluded 3,889 investments valued at AED 5.8 billion.
In H1 2020, 2,895 GCC investors concluded 3,712 investments worth AED6 billion, while 1,839 investors from the Arab region finalised 2,203 investments worth over AED3.2 billion. There was a marked increase in the number of foreign investors in H1 2020 from the same period last year, with 9,213 investors concluding 11,240 investment deals worth over AED16.2 billion.
Women accounted for a substantial share of the number and value of investments. In Q2 2020, 1,781 female investors finalised 1,922 investment deals worth AED2.6 billion. In H1 2020, 4,536 female investors concluded 5,112 investments worth AED 6.6 billion.
Areas with highest activity
In H1 2020, Hadaeq Sheikh Mohammed Bin Rashid topped the areas with the highest mortgage registration transactions with 558 transactions worth AED996 million, followed by Dubai Marina with 293 transactions worth AED817 million, and Jabal Ali First with 272 transactions worth AED1.26 billion. In terms of sales, Dubai Marina topped the list with 1,532 transactions worth AED3.375 billion, followed by Business Bay with 1,244 transactions worth AED1.653 billion, and Al Merkadh with 1,192 transactions worth AED2.522 billion.
In a separate report issued by the Dubai Statistics Center, the real estate sector registered a growth of 3.7 per cent in Q1 2020 compared to Q1 2019, contributing 8 per cent to the overall economy and pushing it higher by 0.27 percentage points. The sector plays an important role in speeding up recovery in the broader businesses sector. Last year, real estate activities achieved a growth of 3.3 per cent and contributed 7.2 per cent of Dubai’s GDP, with an added value of AED29.4 billion, compared to AED28.5 billion in 2018. This represented a 10.7 per cent contribution to Dubai’s overall economic growth.