Dubai's real estate sales rose 5 per cent to reach Dh21 billion in the first quarter of 2020 despite the coronavirus pandemic-driven economic headwinds, according to the latest report from the Dubai Land Department.
The total number of sales transactions during the period grew 13 per cent to reach 10,220, the report released on Saturday said.
“The performance of the real estate sector and its contribution to gross domestic product growth remains positive and was strongly reflected in the value of Dubai’s GDP during the first quarter of 2020,” the report said.
The real estate sector grew 3.7 per cent in the first quarter of 2020 compared to the same period last year, DLD said citing data from the Dubai Statistics Centre. In addition, it contributed 8 per cent (to GDP growth) during the first quarter of 2020, "the largest contribution ever since the first quarter of 2017".
"This positive trend of growth rates for the real estate sector is expected to continue in 2020 and [in] the coming years, underscoring its pivotal role in achieving Dubai’s economic leadership.”
Dubai has supported the local economy with stimulus packages worth Dh6.8bn. It first rolled a package worth Dh1.5bn in March and topped it with another one worth Dh3.3bn in the same month. The government provided further support worth Dh1.5bn in July and Dh500 million last month.
The UAE was the first in the Middle East and North Africa region to introduce economic stimulus measures, including zero interest funding to banks to boost lending growth. It also unveiled initiatives such as discounted utility bills and fee waivers.
In 2019, the value of real estate transactions rose 2 per cent annually to Dh221bn due to growth in the value of both sales and mortgages, according to the report. The value of real estate sales climbed 5 per cent to Dh81bn, while real estate mortgage value reached Dh125bn, up 4 per cent compared to the previous year.
Dubai Marina ranked first in terms of transactions in 2019 with 3,920 deals, followed by Business Bay with 3,508, Al Khairan First with 3,142 investments, Hadaeq Sheikh Mohammed Bin Rashid with 2,833 investments and Burj Khalifa with 2,721 investments.