Property sales prices in Dubai increased between 6 percent to 20 percent in the first half of the year, says Bayut & Dubizzle.
Sales and rents of properties in Dubai's most popular areas have jumped significantly in the first half of 2021 thanks to the government's proactive initiatives that have pushed up demand. The initiatives include the introduction of the Golden Visa, 100 percent foreign company ownership and remote work visas as well as the swift rollout of vaccination campaigns to make the emirate a safe place for investors and residents.
Bayut & Dubizzle combined data show that property sales prices in Dubai increased between 6 percent to 20 percent in H1 2021.
High-net-worth-individuals preferred established communities, like Dubai Marina, Downtown Dubai and Arabian Ranches, though newer gated suburbs, such as Dubai Hills Estate, Estate have also grown in popularity during H1 2021.
Buyers also flocked to Jumeirah Village Circle (JVC), Akoya Oxygen, Dubailand and Jumeirah Lake Towers because of affordably-priced apartments and villas фмфilable there.
The increase in rents was only witnessed in the luxury real-estate market.
Affordable apartments saw minor decreases under 10 percent in asking prices, while luxury properties experienced increases up to 13 percent. The affordable villa segment has seen rental rates remain largely steady in H1 2021 and the luxury market has observed a rental growth between 5 percent and 21 percent.
Tenants working within a tighter budget have preferred Jumeirah Village Circle (JVC), Al Nahda, Mirdif and Akoya Oxygen. Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha have been most popular among high-income renters searching for luxury apartments and villas.
Haider Ali Khan, CEO of Bayut & Dubizzle, said, 'Since the beginning of 2021, there have been growing signs that the Dubai property market is on a steady upward curve, with prices appreciating especially in the sales segment. Most real estate agencies have also confirmed this by sharing the outstanding results of their H1 performance.'
One of Dubai's top developers Emaar Properties reported sales growing by 250 percent in the first five months of 2021 compared to same period last year. The Dubai Land Department recorded a 221 percent increase in the value of sales transactions in May 2021, compared to May 2020.
According to the Dubai Land Department's data, 16,558 sales transactions for residential properties worth USD 6.73 billion took place in Dubai in the first half of the year. Transactions for ready properties dominated during the period, accounting for 59 percent of total residential sales. 'This could be attributed to the growing demand from end-users looking to transition to homeownership or upgrade their homes,' the report by Bayut & Dubizzle noted.