Dubai property deals more than doubled in 2021 amid economic recovery

The emirate registered sales transactions worth $41.13bn last year, making it the best year in terms of total transactions since 2013

Dubai has seen 17,942 sales transactions worth Dh46.75bn since October 1, 2020, according to Property Finder. Sarah Dea / The National

The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of real estate sales transactions, buoyed by demand in the secondary real estate market as the UAE economy recovers from the coronavirus pandemic.

The emirate registered 61,241 sales transactions worth Dh151.07 billion ($41.13bn) last year compared with Dh71.87bn worth of transactions it closed in 2020, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, according to listings portal Property Finder. Total value of sales in 2009 was Dh155.6bn.

The sales transaction volumes in the fourth quarter were also 64.12 per cent higher when compared with the same period in 2020 and the value of deals during the period surged 114.74 per cent to Dh46.75bn.

“Investor sentiment remains strong, demand is still very high and supply is dwindling,” Lynnette Sacchetto, director of research and data at Property Finder, said. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into first half of 2022.”

Property prices have rebounded in Dubai after the pandemic disrupted the global economy. The UAE government's moves to provide more flexible visas has helped to attract more investors, with the emirate recording interest from more non-resident and high-net worth buyers, according to a recent Knight Frank study.

The six-month Expo 2020 global fair, which started in October, also had a positive impact on the property sector.

Last year, 59.6 per cent of all property transactions in the emirate were for secondary or ready property, while off-plan property accounted for 40.4 per cent of the deals, according to Property Finder.

The off-plan market transacted 24,761 properties worth Dh45.5bn during the year. Meanwhile, transactions in the ready market reached 36,480, with a total value of Dh105.56bn.

Expo 2020 appears to have had an impact on the Dubai real estate market, Property Finder said, with Dubai having recorded a total of 17,942 sales transactions worth Dh46.75bn since last October.

“This is the highest volume and value the Dubai real estate market has transacted during a quarter in over eight years," Property Finder said.

Business conditions in Dubai's non-oil private sector economy were at their strongest level in two and a half years in December, driven by a sharp increase in new orders amid a Expo 2020 Dubai demand boost and an improvement in the tourism sector.

The emirate's seasonally adjusted IHS Markit Purchasing Managers' Index reading climbed to 55.3 in December, from 54.5 in November, signalling a sharp improvement in operating conditions, as the non-oil economy continued to recover.